Green Cross has announced its acquisition of ABO Holdings, a U.S.-based plasma center operator, for USD 102 million. This strategic move aims to secure a stable supply of raw materials for its blood plasma product, 'Aliglo' which has been recently introduced to the U.S. market.

The acquisition was disclosed in a regulatory filing on November 11, with Green Cross confirming the purchase of all shares in ABO Holdings. The company cited the expansion of its U.S. plasma fractionation business as the primary objective of the acquisition.

ABO Holdings, headquartered in California, currently operates six plasma collection centers across New Jersey, Utah, and California. The company is also constructing two additional plasma centers in Texas, set to be completed by 2026. Once operational, ABO Holdings will have a total of eight plasma centers in the U.S., significantly enhancing its collection capacity.

To fund the acquisition, Green Cross leveraged KRW 823 billion from the sale of its interest in For Human Life No.1 Private Equity Fund, a private equity fund it established in 2021. The company supplemented this with an additional KRW 557 billion from its cash reserves, enabling it to complete the purchase of ABO Holdings.

Green Cross's acquisition of plasma collection centers aligns with its strategy to support the production and sales of 'Aliglo' a blood plasma product exported to the U.S. since July this year. Aliglo, which received U.S. Food and Drug Administration approval in December last year, is a purified liquid intravenous immunoglobulin derived from plasma fractionation. It is used in the treatment of primary immunodeficiency diseases such as congenital immune deficiency and immune thrombocytopenic purpura. In South Korea, the product is marketed under the brand name 'IVIG-SN.'

The U.S. debut of Aliglo marked a historic milestone, as it became the first blood plasma product developed by a South Korean company to enter the U.S. market. Green Cross completed its first shipment of Aliglo in July, driving strong sales growth. In the third quarter of this year, Green Cross's blood plasma product sales reached KRW 1.52 trillion, a 52.4% increase from the same period last year. Compared to the second quarter's KRW 906 billion, sales surged 68% within a single quarter. The company's U.S. revenue from Aligloba is estimated to have surpassed KRW 300 billion.

With the acquisition of ABO Holdings, Green Cross has now established a fully integrated vertical system for its plasma fractionation business, covering raw material procurement, production, and distribution. A Green Cross official commented, "This acquisition enables us to complete the vertical integration of our plasma fractionation business, ensuring a stable supply of raw materials and enhancing our competitiveness in the global market."

This move signifies a strategic leap for Green Cross in its ambitions to secure a strong foothold in the U.S. market while reinforcing its leadership in the global blood plasma industry.