NPG Science

Part­ner
Com­pa­ny

Pro­fes­sor Yang Deokchun at Kyung Hee Uni­ver­si­ty

Tar­get Raw Mate­r­i­al (Ingre­di­ents)

Prod­ucts includ­ing gin­seng, red gin­seng, black gin­seng, and tra­di­tion­al med­i­c­i­nal ingre­di­ents

Busi­ness
Moti­va­tion

After com­plet­ing ini­tial ver­i­fi­ca­tion indi­cat­ing the pos­si­bil­i­ty of pro­duc­ing pre­mi­um nano phar­ma­ceu­ti­cal prod­ucts through the nano-engi­neer­ing of gin­seng, red gin­seng, and sim­i­lar prod­ucts, an MOU and con­tract sign­ing are under­way to estab­lish a joint ven­ture through an indus­try-acad­e­mia col­lab­o­ra­tion project. This involves the estab­lish­ment of an SPC (Spe­cial Pur­pose Com­pa­ny) to joint­ly con­duct the busi­ness.

NPG Sci­ence Tasks
Respon­si­bil­i­ties

Nano pul­ver­iza­tion and pro­vi­sion of raw mate­ri­als will be facil­i­tat­ed.

Pro­fes­sor
Yang Deokchun
at Kyung Hee
Uni­ver­si­ty
Tasks
Respon­si­bil­i­ties

The plan involves pub­lish­ing papers in SCI-grade inter­na­tion­al aca­d­e­m­ic jour­nals and joint­ly apply­ing for patents to com­mer­cial­ize nano prod­ucts.

Con­tract Amount
(Total of
15 mil­lion
USD)

Research and devel­op­ment will be over­seen exclu­sive­ly by Pro­fes­sor Yang Deokchun at Kyung Hee Uni­ver­si­ty, while patents and papers will be joint­ly han­dled. Our com­pa­ny will be respon­si­ble for phar­ma­ceu­ti­cal man­u­fac­tur­ing, while sales will be man­aged by Kyung Hee Uni­ver­si­ty, fol­low­ing a pre­de­ter­mined prof­it-shar­ing arrange­ment.

Expect­ed Rev­enue

NPG Sci­ence : 1.5 mil­lion USD annu­al­ly.

Nano-mate­r­i­al
Sup­ply Unit Price

Lead­ing the glob­al pre­mi­um red gin­seng prod­uct mar­ket.

Mar­ket
Rip­ple Effects

The sales strat­e­gy for nano-prod­ucts involves sup­ply­ing and sell­ing to Kyung Hee Uni­ver­si­ty’s indus­try-acad­e­mia coop­er­a­tion com­pa­nies and through online shop­ping plat­forms under the super­vi­sion of Direc­tor Lee Kyung­jae, a doc­tor of Ori­en­tal Med­i­cine.

Part­ner Com­pa­ny

US COSTCO

Tar­get Raw

Mate­r­i­al

(Ingre­di­ents)

Reg­is­tra­tion of gen­er­al Over-The-Counter (OTC) med­i­cines and health func­tion­al foods with the US FDA

Busi­ness

Moti­va­tion

Com­ple­tion of ini­tial ver­i­fi­ca­tion indi­cat­ing the poten­tial to pro­duce pre­mi­um phar­ma­ceu­ti­cal prod­ucts through our com­pa­ny’s nano-tech­nol­o­gy, sched­ul­ing the export of nano raw mate­ri­als and semi-fin­ished nano prod­ucts by April 2024.

NPG Sci­ence Tasks,

Respon­si­bil­i­ties

Man­u­fac­tur­ing and export­ing of prod­ucts and semi-fin­ished goods

COSTCO Tasks,

Respon­si­bil­i­ties

Prod­uct sales and glob­al dis­tri­b­u­tion.

Dis­play and sales at US Cost­co.

Con­tract Amount

(Total of

15 mil­lion USD)

Des­ig­nat­ed prices by our com­pa­ny for prod­ucts and semi-fin­ished goods.

Expect­ed Rev­enue

NPG Sci­ence : 1.5 mil­lion USD (ini­tial quan­ti­ties)

Nano-mate­r­i­al Sup­ply Unit Price

<Export>

Fol­low­ing the trend where the US phar­ma­ceu­ti­cal and health func­tion­al food mar­ket pref­er­ences shift­ed towards nat­ur­al prod­ucts, espe­cial­ly after expe­ri­enc­ing the COVID-19 pan­dem­ic, Cost­co in the US has been show­cas­ing and sell­ing nat­ur­al prod­ucts. Con­se­quent­ly, upon secur­ing our com­pa­ny’s nano-pro­duc­tion facil­i­ty, if issued an LOI, we plan to active­ly pur­sue the export pro­ce­dures for our nat­ur­al nano-phar­ma­ceu­ti­cals and nano nat­ur­al health func­tion­al foods to be includ­ed in Cost­co’s offer­ings.

<Domes­tic Mar­ket>

In domes­tic sales, we are in the process of reg­is­ter­ing nano-prod­ucts as health func­tion­al foods with the Korea Food and Drug Admin­is­tra­tion. After com­ple­tion of reg­is­tra­tion, sales of nano-prod­ucts will be con­duct­ed through major spe­cial­ized dis­trib­u­tors and self-sales chan­nels (such as online plat­forms).

Mar­ket Rip­ple Effects

Ini­tial plans include show­cas­ing and sell­ing at three US Cost­co stores.

Part­ner Com­pa­ny

Chi­na GUOTAI Phar­ma­ceu­ti­cal

Tar­get Raw

Mate­r­i­al

(Ingre­di­ents)

Nano Health Sup­ple­ments and Nano Phar­ma­ceu­ti­cal Semi-fin­ished Prod­ucts

Busi­ness

Moti­va­tion

NPG Sci­ence has com­plet­ed the ini­tial ver­i­fi­ca­tion indi­cat­ing the poten­tial to pro­duce pre­mi­um phar­ma­ceu­ti­cal prod­ucts by nano-engi­neer­ing phar­ma­ceu­ti­cal raw mate­ri­als from Chi­na GUOTAI Phar­ma­ceu­ti­cal. The plan is to export nano raw mate­ri­als and nano semi-fin­ished prod­ucts by March 2024, focus­ing on nano health sup­ple­ments and phar­ma­ceu­ti­cal semi-fin­ished prod­ucts.

NPG Sci­ence Tasks,

Respon­si­bil­i­ties

Export of Nano Semi-fin­ished Prod­ucts

GUOTAI

Phar­ma­ceu­ti­cal Tasks, Respon­si­bil­i­ties

Prod­uct Man­u­fac­tur­ing and Glob­al Dis­tri­b­u­tion

Con­tract Amount

(15 mil­lion USD)

The des­ig­nat­ed price by our com­pa­ny per unit of pack­ag­ing for semi-fin­ished prod­ucts

Expect­ed

Rev­enue

NPG Sci­ence : 1.5 mil­lion USD annu­al rev­enue (ini­tial quan­ti­ty)

Nano-mate­r­i­al

Sup­ply

Unit Price

<Export>

GUOTAI Phar­ma­ceu­ti­cal, rec­og­nized by the Chi­nese gov­ern­ment as a des­ig­nat­ed health­care insur­ance com­pa­ny, enables prod­ucts pur­chased by GUOTAI Phar­ma­ceu­ti­cal to qual­i­fy for health insur­ance cov­er­age. This facil­i­tates smooth sales and max­i­mizes rev­enue, ensur­ing sta­ble prof­itabil­i­ty and long-term via­bil­i­ty for the busi­ness.

<Domes­tic Mar­ket>

In the domes­tic mar­ket, plans involve sell­ing nano health sup­ple­ments. The prod­ucts are cur­rent­ly in the process of reg­is­tra­tion with the Korea Food and Drug Admin­is­tra­tion. After com­ple­tion of reg­is­tra­tion, sales of nano prod­ucts will occur through spe­cial­ized dis­trib­u­tors and self-sales chan­nels (such as online plat­forms).

Oth­er Notes/Details

GUOTAI Phar­ma­ceu­ti­cal pri­or­i­tizes the ini­tial export of nano-cal­ci­um prod­ucts.

Part­ner Com­pa­ny

GSM KOREA

Tar­get Raw

Mate­r­i­al

(Ingre­di­ents)

Apatite nano-mate­r­i­al

Busi­ness

Moti­va­tion

After com­plet­ing the ini­tial ver­i­fi­ca­tion, it has been con­firmed that by nano-engi­neer­ing this apatite raw mate­r­i­al using our (NPG Sci­ences) tech­nol­o­gy, GSM can pro­duce pre­mi­um mate­ri­als with sig­nif­i­cant­ly high­er mar­ket share and with­out adverse effects com­pared to the arti­fi­cial bones and implant mate­ri­als pre­vi­ous­ly pro­duced by GSM. We have entered into a joint ven­ture agree­ment with GSM for the pro­duc­tion of apatite nano-mate­ri­als, and we are in the process of prepar­ing for the con­struc­tion of the pro­duc­tion facil­i­ty. We plan to com­plete the nano-machin­ery instal­la­tion by Feb­ru­ary next year to com­mence the pro­duc­tion of nano-mate­ri­als.

NPG Sci­ence Tasks,

Respon­si­bil­i­ties

Equip­ment lease (ini­tial lease for 10 years with options for exten­sion)

GSM Tasks,

Respon­si­bil­i­ties

Raw Mate­r­i­al Pro­duc­tion and Glob­al Dis­tri­b­u­tion.

Sign­ing sup­ply, sales, and export con­tracts with major cor­po­ra­tions.

Con­tract Amount

(15 mil­lion USD)

The ini­tial equip­ment cost, nano-machin­ery expan­sion expens­es, and raw mate­r­i­al pro­duc­tion costs.

Expect­ed

Rev­enue

GSM Korea : Annu­al rev­enue of 77–115 mil­lion USD
NPG Sci­ence : 15–23 mil­lion USD

Nano-mate­r­i­al

Sup­ply Unit Price

Nano high-den­si­ty raw mate­ri­als and low-den­si­ty raw mate­ri­als — des­ig­nat­ed prices set by our com­pa­ny.

Mar­ket

Rip­ple Effects

Pre­mi­um mar­ket for­ma­tion through glob­al sup­ply of new mate­ri­als and secur­ing 30% mar­ket share of glob­al total.

Oth­er Notes

Details

Due to the nature of nan­otech­nol­o­gy, there is high mar­ket dom­i­nance in nano-mate­ri­als.