CJ CheilJedang Corp., the food and beverage unit of South Korea’s CJ Group, said Thursday that it will turn its pharmaceutical division into a wholly owned subsidiary to boost the business’ global competitiveness.
The new entity, named CJ Lifesciences Co., will be launched on April 1, the company said in a regulatory filing.
The pharmaceutical division posted 448.8 billion won ($415.8 million) in sales in 2013, with the food and beverage division recording 4.22 trillion won in sales.
CJ CheilJedang said it will continue to operate food, beverage and bio businesses.
The envisioned pharmaceutical company will focus on the development of generic and new drugs to sharpen its competitive edge.
The spin-off plan is subject to approval by shareholders at a meeting slated for March 21.
In a separate report, the company said it posted 80.81 billion won in net profit in 2013, down 74 percent from 310.71 billion won.
Its sales rose 9.82 percent to 10.84 trillion won in the period, but operating profit tumbled 44 percent to 345 billion won. (Yonhap)