(아주경제 이정은 기자) Cell Biotech has been established in 1995 with a starting capital of 4.7 billion won. The company is in the first generation of bio-venture companies. Cell Biotech is concentrating its energy on producing functional foods using lactic acid bacteria (LAB) and anti-microbial peptides. Its own brand, "Duolac" is well-known in overseas rather than in Korea.
Cell Biotech is one of KOSDAQ-listed small businesses which has bigger overseas sales than domestic sales.
The biotech company expands the sales networks in Korea, Japan and the US with global distributor Amway while it is expanding sales network in European market with its subsidiary, Cell Biotech Europe(CBTE).
◆ More than half of sales come from exports
The production line of Cell Biotech can turn over 30 billion won a year without more investment. The reporters of Asia Business visited a head office of Cell Biotech in Gimpo-si, Gyeonggi-do, Korea.
The head office consists of a factory and two research buildings. The manufacturing process is done under thorough sanitary requirement. For a tour through the factory, visitors must wear protective clothing.
From producing bacteria to manufacturing functional foods, all processes are done in this factory. According to a person concerned to Cell Biotech, it can turn over 30 billion a year without more investment.
Cell Biotech sends export products directly by airplane to their destinations because the company is using living bacteria for products.
Export products are divided into powders (law materials), functional foods and medicines.
Cell Biotech is competitive in the world market as it can provide a total service from R&D, production to distribution.
Cell Biotech is expanding its networks in Europe as it has established a branch in Denmark, Cell Biotech Europe(CBTE), in the end of 2006. That's why its overseas sales take up more than half of overall sales.
Cell Biotech turned over 10.7 billion won in 2007, and 12.2 billion won in 2008. Last year, it had yearly sales of 15.8 billion won. The company expects it will turn over 20 billion won this year.
"Sales for the first quarter increased 47.5 percent to 4670 million won from a same period in the previous year. Net profit rose 20.9 percent to 980 million won from a year ago," said Choi Lak-jae, head of management team, said.
He told that the domestic sales are on an increasing trend as it raised brand awareness by business-to-consumer (B2C) marketing. "Domestic sales for the first quarter increased 6.3 percent to 44.9 percent compared to the same period in the previous year," he said.
◆ Business diversification to cosmetics and medicines
Cell Biotech plans to increase sales and earnings by diversifying its business.
Especially it will expand its business fields to medicines and medical supplies, medicines for animals and cosmetics.
The bio-tech company has a plan to develope new products such as cosmetics for acne skin, cosmetics made from oriental herbs and medicines for atopic diseases and osteoporosis.
The company puts efforts on not only R&D, but also clinical demonstrations with various researchers and university hospitals.
For a long-term goal, Cell Biotech is pushing ahead with "custom-made prescription" using a technology of analyzing probiotics.
Cell Biotech is expanding its overseas sales networks. The company expects extra sales growth after entering Chinese and Indian markets. At this moment, the company supplies its products to Japan, the US, Taiwan and Malaysia.
The bio-tech firm is strengthening on B2C sales in domestic markets. Especially, the company concentrates on online marketing to make users easily accessible to its online communities and blogs. The company recently reorganized its online shopping mall.
Cell Biotech expects benefits from the conclusion of the FTA between South Korea and European Union(EU). The company will be competitive and move ahead of its rivals in Europe after removal of tariffs and restriction on market entry.
However, the conclusion of the FTA will give positive influences in a medium and long term as the tariffs are to be scrapped stage by stage on regulations, and every Europe country has different tariff rate.
※ What are probiotics and dual coating technology?
The main ingredient of its products is probiotics, also called lactic acid bacteria(LAB).
LAB utilize sugar such as glucose and lactose as a carbon and energy source and produce lactic acid and other secondary metabolites. LAB are beneficial bacteria which inhibit the growth of undesirable microorganisms in human intestines.
The probiotics are known that it helps movement of the intestines and treat intestinal disorder including diarrhea. Also it has an effect of curing allergies and atopic dermatitis.
Today, studies about LAB are ongoing actively in Denmark where the bacteria and dairies are famous.
Cell Biotech is no exception. The company strives to work on R&D to expand its business fields to medicines for atopic dermatitis.
"Dual coating technology" is one of original technologies of the company. It is a technology for the protection of LAB during the passage through gastro-intestinal tract and during the manufacturing process.
Cell Biotech successfully registered patents not only at home, but also abroad. It means that the reliability of its technologies is proved internationally.
By Moon Jin-young
Translated by Lee Jeong-eun
nvcess@ajnews.co.kr
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