PharmaResearch Acquires CG USA for North American Expansion

PharmaResearch, a South Korean regenerative medicine specialist, is significantly bolstering its North American presence through the acquisition of Cosmetic Group USA (CG USA). This strategic move aims to establish a local manufacturing footprint, enhancing supply chain efficiency and distribution for its popular REJURAN Cosmetics brand across the United States and beyond.

The deal, the financial specifics of which remain undisclosed, is designed to accelerate PharmaResearch's localization strategy. Previously, the company relied on exporting products manufactured in Korea to meet growing U.S. demand, a model that has become increasingly strained by the brand's success, including its recent expansion into major retail channels like Sephora and Amazon. Securing a U.S.-based production facility is expected to streamline logistics, improve responsiveness to market needs, and support further penetration into Canada and other South American markets.

CG USA, a California-based entity founded in 1986, brings extensive expertise in original equipment manufacturing (OEM) and original design manufacturing (ODM) for the cosmetics and personal care sectors. Its capabilities span the entire product lifecycle, from formula development and planning to filling, packaging, and rigorous quality control. The facility is FDA-registered and operates under current good manufacturing practice (cGMP) standards, holding an ISO 22716 certification, which is crucial for ensuring product safety and compliance in the highly regulated beauty industry.

This acquisition is particularly timely given the robust growth within the global derma-cosmetics market, which is increasingly driven by science-backed ingredients and regenerative technologies. REJURAN Cosmetics, built upon PharmaResearch's proprietary DOT c-PDRN ingredient derived from its regenerative medicine research, is well-positioned to capitalize on this trend. The U.S. market, in particular, represents a significant opportunity, with consumer interest in advanced skincare solutions on the rise. The integration of CG USA's manufacturing infrastructure also opens avenues for PharmaResearch to potentially expand its ODM services to other brands in the U.S. over the medium to long term.

The move also positions PharmaResearch to better manage supply chain stability, a critical factor in the fast-paced consumer goods sector. By having local production capabilities, the company can mitigate potential disruptions and ensure a consistent supply of its premium derma-cosmetic products. Furthermore, CG USA's capacity for over-the-counter (OTC) product manufacturing could serve as a foundation for future diversification beyond cosmetics into related health and wellness categories.

Ji Hoon Sohn, CEO of PharmaResearch, highlighted the acquisition as a pivotal step for strengthening their North American business foundation and expanding market reach. He emphasized the importance of local production and quality infrastructure in enhancing global competitiveness. A representative from CG USA expressed enthusiasm for partnering with PharmaResearch during this growth phase for REJURAN Cosmetics, anticipating a synergistic combination of manufacturing prowess and scientific expertise.