(Yicai) March 11 -- Shares of Imeik Technology Development surged after the Chinese developer of biomedical soft tissue repair materials said it plans to buy a controlling stake in South Korean peer Regen Biotech to solidify its leading position in the aesthetic injection filler market.

Imeik [SHE: 300896] was trading up 14.5 percent at CNY200.25 (USD27.62) as of 1.45 p.m. in Shenzhen today.

A 70:30 joint venture between Imeik’s Hong Kong-based unit and an investment fund will purchase an 85 percent stake in Regen for USD190 million, Imeik announced yesterday. The deal is subject to review and approval by both Chinese and South Korean authorities.

Once the transaction is completed, Regen’s research, development, production, and sales capabilities will be integrated into Imeik’s, with Regen becoming Imeik’s international business platform to enhance its sales revenue from global markets, the buyer pointed out.

Meanwhile, Imeik will leverage its R&D, production, supply chain management, and operation expertise to assist Regen in expanding its product portfolio, reducing production costs, and improving management efficiency, the firm added.

Regen is the world’s third and South Korea’s first company to obtain regulatory approval to sell polylactic acid skin filler products. It has two factories in South Korea, one began production in 2001, and the other is expected to come on stream in the second quarter of this year.

Regen owns two regenerative injectable products: AestheFill and PowerFill. The first, an injectable filler to improve facial wrinkles and folds, has been approved for registration and marketing in 34 countries and regions, including China. The second, a filler to enhance or enlarge penis for persons with micropenis, has been approved for registration in 24 countries and regions.

In the first three quarters of 2024, Regen reported an operating revenue of CNY72.2 million (USD10 million) and a net profit of CNY29.5 million, according to Imeik’s announcement.

Editor: Futura Costaglione