Adviotech is experiencing strong gains as it expands its bio and contract research organization (CRO) business through the acquisition of shares in pet healthcare company Onhill.
As of 2:10 PM on July 7, Adviotech's shares were trading at 2,215 won, up 7.26% from the previous trading day, according to the Korea Exchange.
The surge in investor sentiment is attributed to news of a strategic investment aimed at diversifying its business. Adviotech announced on July 6 that it had decided to acquire 181,269 shares of Onhill for approximately 10 billion won, following a board resolution on July 3. After the acquisition, Adviotech will hold a 12.28% stake, making it the second-largest shareholder in Onhill, following CEO Kim Do-hyung.
The company plans to leverage this investment to enhance synergies in new business areas, including non-clinical CRO services, veterinary hospital platforms, and pet healthcare. The investment represents about 29.25% of Adviotech's equity, described as a strategic move to secure future growth drivers.
Onhill operates based on the One Health concept, engaging in non-clinical CRO services, pharmaceutical and medical device design and distribution, animal medicine licensing, the VETUS veterinary prescription platform, B2C distribution for pet products, and pet healthcare research and development (R&D).
Since appointing Kim Do-hyung as CEO at a special shareholders' meeting in June, Adviotech has been strengthening its existing immunotherapy business while expanding its portfolio into bio R&D, medical and healthcare, pet services, and digital platforms.
A company representative stated, "This share acquisition is part of our diversification strategy for sustainable growth. We will strengthen strategic partnerships and actively seek new business opportunities."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.