BIO&PHARMA

CJ CHEILJEDANG BIO CJ HEALTHCARE

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CJ CheilJedang Bio has become the world’s leading bio
company thanks to its competitiveness and investment in
R&D. CJ CheilJedang Bio commits to being a global green bio
company by bolstering its product competitiveness, especially
for ‘Nucleotide’ and ‘Lysine,’ which are leaders in the global
market, expanding global production facilities and securing
new engines for global growth.

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CJ Healthcare leads the domestic ETC, API and Health&Beauty
markets. With the establishment of the Osong Plant which
complies with the cGMP standard to go global, CJ Healthcare
has laid the foundation to be a leading global pharmaceutical
company.
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BUSINESS OVERVIEW FINANCIAL HIGHLIGHTS

CJ CheilJedang Bio Business
Global Market Share (Unit: %) Sales by year (Unit: billion won)
CJ CheilJedang Center, 330, Dongho-ro,
Jung-gu, Seoul / www.cjbio.net

51 2017 * 4,000
NO.1
42 2012 1,500
35
CJ CheilJedang Bio, 2011 1,200
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a Global Leader in Advanced Bio Products 23 23 NO.1 2010 956

2009 706
2010 2011 2012
CJ CheilJedang Bio business is a global leader in the feed amino acid and fermented nucleotide market for food.
Starting with the production of MSG in 1964, CJ CheilJedang Bio produces ‘Lysine,’ ‘Threonine,’ ‘Tryptophan,’ CJ Tide(nucleotide) L-Lysine * 2017 Sales Forecast
‘Nucleotide’ and ‘MSG’ at seven overseas plants based on its micro-organism fermentation technology that has been
developed over the past 50 years. CJ CheilJedang Bio reached sales of 1 trillion won in 2010, meaning it played a
pivotal role in the health of CJ’s global business. CJ CheilJedang Bio has established the competitive edge it needs
to compete globally through expanding its business scale. It currently strives to enter the environmentally friendly bio
business by producing the world’s first ‘L-form Methionine,’ functional amino acids, non-edible biomass and bio-plastic.

BUSINESS AREA

HISTORY
CheilJedang Bio business started with the production of MSG in the 1960s and laid the foundation for success
when it launched the world’s second nucleotide in the 1970s. CJ CheilJedang Bio entered the amino acid for
animal feed market around the 1980s and 1990s, which was the starting point for its entry in the global market.
Having secured a number of production outposts around the world in the 2000s, CJ CheilJedang Bio is going
global at full throttle.
Animal Nutrition | CJ CheilJedang Bio Business is a leading manufacturer in the global feed amino acid market.
Feed amino acids are essential nutrients for animal growth. CJ CheilJedang Bio Business currently ‘Lysine,’
‘Threonine,’ ‘Tryptophan’ and ‘Valine,’ with the largest global market shares for ‘Lysine’ and ‘L-Tryptophan.’ In
addition, it has developed the environmentally friendly technology required to produce ‘Methionine’ and is set to
mass-produce it.
Food Ingredient | CJ CheilJedang Bio Business became the world’s second developer of ‘nucleotide’ in 1997
after Japan and started expanding its ‘MSG’ and ‘nucleotide’ business. MSG and nucleotide are food enhancers
to enhance the flavors and tastes of processed foods, which have seen a growth in the global market along with
the growth of the processed food industry. CJ CheilJedang Bio Business is a leader in the global nucleotide market

1964 Acquired Wonhyung Industry. Started producing and
selling ‘MIPOONG’(MSG)
1968 Started operating Gimpo Plant(to produce MSG)
1977 Became the world’s 2nd to successfully ferment and
produce ‘Nucleotide’
Developed IMP, GMP
Launched ‘AIMEE(MSG +0.5% of nucleotide)’
1978 Established a plant for organic fertilizer
1988 Established PT. CHEIL SAMSUNG INDONESIA
(PT-CSI) in Indonesia
1991 Established Pasuruan plant(to produce ‘Lysine,’ MSG)
1996 1st extension of Lysine line at Pasuruan plant
1997 Established Jombang plant(to produce nucleotide)
1999 Established BIO business unit
2000 Changed to BIO BU
2000 Launched ‘L-Threonine’
2005 Completed Laocheng plant in China to produce lysine
2006 Completed Laocheng plant in China to and is expanding its product portfolio to health-related functional amino acids, including ‘Arginine,’ ‘Glutamine,’
produce nucleotide and ‘BCAA.’ It commits to providing customers with health and joy through quality products.
2007 Completed Piracicaba plant in Brazil
2010 Launched ‘L-Tryptophan’ Future business | CJ CheilJedang Bio Business is preparing bio-based chemicals(raw materials for bio
2012 Completed Shenyang plant in China to produce plastic and bio-based chemicals) and the non-edible biomass business based on the innovative convergence
‘Lysine,’ ‘Threonine’ of chemical process and catalyst technology with industrial strain development and fermentation technology.
2012 Started producing ‘MSG’ at Jombang plant
The environmentally-friendly bio-based chemicals are used as substitutes for chemical ingredients made from
2013 Started producing the world’s first ‘L-Methionine’
petroleum-based resources and thus prevent natural resources from becoming depleted while also reducing
2013 Launched edible amino acid, ‘L-Arginine’
greenhouse gas emissions. In addition, non-edible biomass is an effective substitute for materials from plant-based
2013 Launched health-related functional amino acids
resources, and thus acts to contribute to making a sustainable and harmonious environment.
2013 Extended business areas to non-edible biomass and
bio-based chemicals(bio-plastic)
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Animal Nutrition
VISION

Beyond Bio,
Renew the
A Leader in the Global Feed Amino acid
Earth Market thanks to Unparalleled Technology

CJ CheilJedang is the number one global bio company in the green Environmentally Friendly policy,
ONLYONE Technology
bio market and a leader in the feed amino acid market. It leverages its
advanced fermentation and refining technology to produce feed amino The fermentation-based method to produce
MISSION
feed amino acids is environmentally friendly
acids including ‘L-Lysine,’ ‘L-Threonine,’ ‘L-Tryptophan,’ ‘L-Methionine,’
because it controls the glucometabolism
‘L-Valine’ and arginine. Feed amino acids are essential to animal growth of microorganisms, which enables it to use

(SOCIETY) (CUSTOMER) (EMPLOYEE) and supply the nutritional balance to animal growth when they are used in less energy and produce no pollutants. CJ
CheilJedang Bio Business has taken a further
Make the Earth Provide Work feed for pigs, chickens, horses and cows. The feed amino acid market is
step in support of the environment. It has
healthier with the best value with passion growing by a rapid 8-10 percent a year as the demand for meat increases made a large investment in the environment
green/white bio with advanced and joy the world over. at overseas plants to reduce wastewater and
products technology CJ CheilJedang Bio business has the largest market share in the global water usage, and eventually to establish a zero-
discharge system to preserve water resources.
‘L-Lysine’ and ‘L-Tryptophan’ markets through the establishment of a
Moreover, it has developed a high-yield strain
plant in Shenyang, China in 2012 and in Iowa, U.S.A. in the second half of to reduce raw and subsidiary materials and to
2013. Moreover, CJ CheilJedang Bio will become the first bio company decrease overall greenhouse gas emissions. It
Beyond the current working process, beyond the current technical boundary, works to protect the Earth and the ecosystem
to produce four major feed amino acids based on an environmentally-
beyond the current business areas, CJ CheilJedang Bio Business works to with its bio business ONLYONE technology.
friendly technical method, as it starts producing ‘L-Methionine’ from 2014.
pass on a sustainable and harmonious Earth to our children.
Moreover, CJ CheilJedang Bio will extend the product portfolio with the
launch of ‘L-Valine’ and ‘L-Arginine’ and the development of ‘Biotector,’
the world’s first environmentally friendly substitute to antibiotics. It commits
to leading the global market with highly valuable and environmentally
friendly bio products.

The CJ CheilJedang bio business has a vision of “Beyond BIO, Renew the Earth”, which
represents its commitment to do its best to maintain an ecosystem that’s sustainable for all
BIOMASS CO2
humans and animals. Its mission and duty is to pass on a sustainable Earth to our children
SUSTAINABILITY
by laying the foundation for growth and a sustainable ecosystem while protecting resources
and the environment. CJ CheilJedang Bio Business pledges to work hard to leverage its CJ BIO BIO PRODUCTS

capabilities towards creating a sustainable future.


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Best Products
BESTAMINOTM
‘BestAmino’ is a trademark of CJ Feed amino acid products. It represents
the confidence that CJ has in providing the highest levels of quality,
service and value to its customers.
Demand for feed amino acids products continues to enjoy high growth
of 8 -10 percent a year globally. CJ CheilJedang Bio Business leads the
global feed amino acid market with its ‘BestAmino’ products.
CJ’s ‘L-Lysine’ and ‘L-Tryptophan,’ based on CJ’s advanced technology
and cost competitiveness, take the top place in terms of market share.
CJ has launched ‘L-Methionine,’ which accounts for 50 percent of the
feed amino acid market, and ‘L-Threonine,’ which enhances animal
growth based on environmentally friendly bio fermentation method.
CJ has recently developed ‘L-Valine’ after three years of research and
development. The environmentally-friendly ‘L-Valine,’ which helps to
promote animal growth, is enjoying rapid growth of more than 30 percent
a year.
CJ CheilJedang Bio Business has established an exclusive portfolio of
feed mino acid products with its different level of technology and raw
materials. ‘BestAmino’ will continue to grow as a leading brand in the
global feed amino acid market.
L-Lysine
‘Lysine’ is a key nutrient related to the production performance
and considered as the first depleted amino acid at pork farms
and the second depleted amino acid at chicken farms. Lysine
should be provided by using with feed. Mixing ‘L-Lysine’ with
feed delivers nutritional balance and the supply of a proper
quantity of amino acids, which prevents excessive protein
intake and reduces ammonia excretions. CJ CheilJedang Bio
Business continues to consolidate its leadership position in the
global ‘lysine’ market with the advanced technology and cost
competitiveness.
L-Tryptophan
‘Tryptophan’ is the third most rapidly depleted amino acid in
pigs. Tryptophan boosts the immune system by maintaining
an internal protein balance that induces normal growth, and
promotes antibody creation. As a precursor of serotonin the
neurotransmitter tryptophan reduces animal aggressiveness,
as has been reported in research. CJ CheilJedang Bio’s
‘L-Tryptophan,’ which started being produced in 2010, currently
holds the largest market share in the global market.
L-Valine
‘Valine’ is the fifth most rapidly depleted amino acid in pig
feeds and a part of BCAA(Branched Chain Amino acid), along
with leucine and isoleucine. The shortage of ‘Valine,’ which is
an essential nutrient for pigs and chickens, may cause nerve-
related problems. The use of ‘L-Valine’ or other BCAA with
feed helps the environment by reducing protein and ammonia
excretions.
CJ CHEILJEDANG BIO CJ HEALTHCARE
L-Methionine
‘Methionine’ accounts for 50 percent of the global feed amino
acids for the feed market, 95 percent of which are dominated by
German, Chinese, American, and Japanese products. Due to
technical limitations, Methionine products have ‘DL-form’ from
chemical process with using petroleum-based materials, unlike
other amino acids. However, CJ CheilJedang Bio Business
became the first manufacturer to commercialize successfully
‘L-form Methionine’ with the environmentally-friendly bio
engineering method based on raw sugar and glucose, which
has the same structure as natural methionine and offers higher
stability and usability.
L-Threonine
‘Threonine’ is the second or third most rapidly depleted
essential amino acid in animals. It promotes sound animal
growth, and is involved in antibody creation that enhances
the performance of the cardiovascular, digestive, central
nervous, and immune systems. ‘L-Threonine’ is produced by a
fermentation process and contributes to promoting the growth
of livestock, with cost reductions for livestock industry, and
enhanced environmental conservation.
L-Arginine
‘Arginine’ carries nitrogen and is abundant in the body fluid of
the fetus at the early and middle stages of pregnancy. ‘Arginine’
aids protein synthesis, urea circulation and the excretion of
nitrogen produced in the human body, and produces nitrogen
monoxide and polyamine that regulates the contraction and
release of blood vessels. It improves egg production and egg
weight, while maintaining the health of baby pigs and improving
the pregnancy outcome in pigs.
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Food Ingredient

Tastier and Healthier Foods for

the Global Market with Safe and Healthy
Naturally-Fermented Ingredients

‘Monosodium glutamate(MSG)’ and ‘nucleotide’ are major flavor
enhancers and food ingredients that have been improved with the
development of the fermentation technology of CJ CheilJedang Bio
Business Unit. As they add a savory taste and enhance the natural flavor
and taste of food, they are often used to increase the taste and flavor of
food products.
‘MSG’ and ‘nucleotide’ naturally exist in foods but the amounts
ordinarily contained are too little to use commercially. Thus, ‘MSG’ and
‘nucleotide’ are produced through a fermentation process which allows
The largest global market share,
CJ Tide (Nucleotide)
CJ CheilJedang Bio Business Unit has had the
largest market share in the global nucleotide
market from 2011. With the establishment of a
production facility in Indonesia and China, and
the global sales network, CJ CheilJedang Bio We make more tastier and
Business supplies CJ Tides to the 70 countries healthier foods for the
around the world. The market share of CJ
global market with safe and
CheilJedang’s nucleotide products will only
grow in the future. healthy ingredients.

a small amount of them to enhance taste and flavor greatly. ‘MSG’ and
‘nucleotide’ are currently used as core ingredients for all processed foods,
51%
including seasonings, Ramyun, pastes, sauces, snacks, and processed
meat and fish products.
Today, the global demand for ‘MSG’ and ‘nucleotide’ is over 3 million tons
and 4 million tons a year. The global demand for ‘nucleotide’ as a food No.1
enhancer continues to grow, especially in China, Southeast Asia, and 2013
Africa, due to its cost competitiveness and convenience. CJ CheilJedang
Bio Business has the largest market share in the world thanks to its
production competitiveness and its establishment of global supply
facilities. Its market share continues to grow each year. CJ CheilJedang
Bio Business expands the bio business to amino acids products based
on its amino acid fermentation technology. The recent well-being and
health trend is increasing the demand for health-related functional amino
acid products and CJ produces ‘L-Arginine,’ ‘L-Glutamine,’ and ‘BCAA’
to respond to this demand. CJ CheilJedang Bio Business will make
tastier and healthier foods for the global market with safe and healthy
ingredients.

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Best Products
Flavor Enhancer
A flavor enhancer enhances the natural flavor and taste of food. It refers
to the ‘Umami taste(savory taste).’ ‘Monosodium glutamate(MSG)’ and
‘nucleotide’ are the core taste substances that naturally exist. ‘MSG’ is
found in seaweed, mushrooms, beans, meats, and most natural foods.
MSG has been used as a natural food additive in many regions and it is
safe to use. ‘Nucleotide’ are found in beef, mushrooms, and fish but it
is mostly produced through a fermentation process as only a very small
amount is naturally contained in food. Food enhancers have a long and
safe history of use in the food industry, and are expected to continue to
contribute to enhancing taste in a safe and healthy way.
Functional Amino Acid
Twenty amino acids are the essence of all living organisms. Amino acids
exist naturally and have a core function in living organisms. Amino acids
have become more widely used in recent years in the healthcare and
personal care industry because they aid body functions and are not toxic
to the skin. The use of amino acids for industrial use has started to grow.
CJ CheilJedang continues to innovate its amino acid products for added
value.
MSG
Glutamate is a major substance for the ‘Umami taste(savory
taste),’ the fifth basic taste along with sweet, salty, sour, and
bitter tastes. Glutamate is made through fermentable sugars
from molasses or glucose and this is ‘MSG’(monosodium
glutamate). ‘MSG’ is found in most natural foods and rich in
fermented foods such as soybean paste and cheese. It has
been used in diverse regions around the world. European and
the U.S.A. FDA have stated that the intake of MSG presents no
harm to the human body. The EU Expert Committee on Food
Additives set the limited intake amount of ‘MSG’ at 153mg in
1973 and withdrew the limit in 1987 with the reason that MSG
offers no potential harmful effects to human health. ‘MSG’
has cost competitiveness, which enhances flavor and taste in
smaller amounts, and is widely used in most processed foods.
CJ CheilJedang’s MSG is widely supplied to food manufacturers
around the world.
L-Arginine
‘Arginine’ is the only amino acid to produce nitrogen monoxide
that is a neurotransmitter regulating the contraction and release
of blood vessels. It enhances the cardiovascular system,
muscles and vitality. It has been proved effective in the treatment
and recovery of sensitive teeth. With its strong moisture effect,
more skin and hair products use ‘Arginine’ and it offers the
potential for use in healthcare foods and daily care products.
L-Glutamine
‘Glutamine’ is the most abundant free amino acid found in
the body. It is a source of muscle energy and should be taken
sufficiently to prevent muscle breakdown during intense exercise
or nutritional imbalance. ‘Glutamine’ has a synergy effect with
‘Arginine.’ As the sport nutrition market grows, ‘Glutamine’ is
facing rising demand. It is used as a source of nourishment in
food for patients as it increases muscle and organ repair.
CJ CHEILJEDANG BIO CJ HEALTHCARE
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CJ Tide
‘CJ Tide(nucleotide)’ is one of the major substances that is
used to create the Umami taste(similar to savory and mouth-
watering taste) along with ‘MSG.’ It is often used to enhance
the taste and flavor of food. The types of ‘nucleotide’ are IMP
and GMP. ‘Nucleotide’ are naturally found in dried fish, beef
and so on, but the amount contained is very little. Thus, the
food industry mass produces nucleotide through fermentation.
‘Nucleotide’ increase the flavor and taste a lot more when
they are used with ‘MSG,’ so they are often used in processed
foods. By using ‘nucleotide’ within 10:1~20:1 depending on a
food product, nucleotide can enhance flavor by up to 10 times.
‘Nucleotide’ enhance the initially recognized tastes. IMP, one
of the nucleotide products, enhances the ability to recognize a
salty taste initially and GMP enhances the ability to recognize
the taste of fat initially. Thus, IMP and GMP are regarded
as a substitute for salt and fat respectively. Nucleotide are
widely used not only as a flavor-enhancer but also for nutrient
substitutes.
BCAA valine, leucine, isoleucine
‘BCAA(Branched Chain Amino acid)’ is a Branched Chain
Amino acid, and includes ‘valine,’ ‘leucine,’ and ‘isoleucine,’
which are among the nine essential amino acids for humans.
‘BCAA’ is an essential amino acid in muscle proteins and should
be obtained through food intake as it is not naturally composed
in the body. ‘BCAA’ enhances protein synthesis, muscle repair,
the endurance and the recovery of muscle fatigue, and the use
of ‘valine,’ ‘leucine,’ and ‘isoleucine,’ may increase. ‘BCAA’
is becoming more widely used for sport nutrition along with
‘Glutamine’ as the sport industry grows. ‘BCAA’ is widely used
to treat patients suffering from cirrhosis and hepatic insufficiency
which hinders protein synthesis.
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Global Production Facilities of CJ CheilJedang Bio Business

Global Activities
INDONESIA MALAYSIA CHINA U.S.A. BRAZIL

• First overseas production facility • Made a full entry into the • Production of lysine, threonine, • Global outpost for lysine production • Plays a connecting role
• Production of feed amino acid Methionine market and nucleotide • Entered the US market at full throttle • Easy to supply raw sugar
products and nucleotide • Penetrated the Chinese and
Asian market

1991 Established the Pasuruan plant 2014 Planned completion of the 2005 Established the Shandong plant 2014 Planned completion of the Green 2007 Complete the Lysine plant
1996 Established the Jombang plant Green Bio plant producing 2012 Established the Shenyang plant Bio plant producing 100,000
80,000 tons of Methionine a year tons of Lysine a year

For a future as Global No.1

in the Bio Industry Production Plant
R&D Post
Sales Office

RUSSIA
The core factor behind the global success of CJ CheilJedang Bio
Business has been its cost competitiveness. Its cost competitiveness is U.K. GERMANY KOREA

the result of three competitive edges: R&D, location, and global business FRANCE HUNGARY CHINA U.S.A.
PAKISTAN JAPAN
management. CJ CheilJedang Bio Business commits to bolstering its JORDAN
INDIA PHILIPPINES
market leadership in ‘Lysine,’ ‘Nucleotide’ and ‘Tryptophan,’ which are MEXICO
VIETNAM
currently leading the global market. NIGERIA THAILAND
MALAYSIA COLOMBIA
KENYA
CJ CheilJedang Bio Business has been extending its sales network by INDONESIA
PERU BRAZIL
reinforcing its global business network to provide customers with better SOUTH AFRICA
quality and service. CJ CheilJedang Bio Business will start producing AUSTRALIA
CHILE
‘Methionine,’ which accounts for over 50 percent of feed amino acids, ARGENTINA

from 2014 when the Malaysian plant is completed, and will assume
global leadership by producing the world’s first ‘L-form Methionine.’
In addition, it will diversify the product portfolio with functional amino
acids such as ‘L-Valine,’ ‘L-Arginine,’ and ‘Glutamine’ to secure a future GLOBAL SCENES
growth engine and enter the new business area of non-edible biomass
and bioplastic. It will establish a sustainable growth model by recycling
resources.
CJ CheilJedang Bio Business is leading the global bio industry, rather
than being content to be a leader in the amino acid business. It commits
CJ CheilJedang Bio Business is growing as a
to being the number one company in the global bio market by bolstering
global leader in the bio industry by establishing
its market dominance and securing a future growth engine. production facilities in Indonesia, the U.S.A.,
and Brazil.
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R&D Institute

Nucleotides

CJ Research Institute of Biotechnology is

Leading Life Sciences
Bio-Based
Amino Acids
Chemicals
CJ Research Institute of Biotechnology was established in 1984 to support
CJ’s Bio &Pharma business. As a leading bioresearch institute, it aims to R&D
mass-produce ‘amino acids’ and ‘nucleotide’ based on the world’s most
advanced technology to develop high yield microbial strains and biological
fermentation processes. CJ’s major products - ‘CJ Tides,’ ‘L-Lysine,’
and ‘L-Threonine’ – have been selected as ‘World-Class Product’ by the
Korean Ministry of Trade, Industry, and Energy. In particular, the technology Microbial
Biomass
to produce ‘L-Threonine’ by using microgenomics was selected as a ‘Top Material
10 Korean Innovative Technologies of 2012.’ The CJ Research Institute of
Biotechnology was the first in the world to produce ‘L-Methionine’ using
a process involving the fermentation of microorganisms. It produced
the bacteriophage ‘Biotector,’ which is an environmentally-friendly feed
additive product. The Institute annually applies for over 70 domestic and
international patents and now holds more than 500 patents through its Since its establishment in 1984, CJ Research

innovative research. Institute of Biotechnology has been shaping

the future of the bio industry with its world-
With the increasing need for technology to handle the soaring price of fuel
class technology.
and global warming, the CJ Research Institute of Biotechnology conducts
research on the white bio area based on its world-class technology to seek
a resolution to environmental issues and thus lead the future bio industry,
including biochemical to develop bio-based platform chemicals from Intellectual Property Rights TOTAL

534
sustainable biomass using renewable resources, and on biomass to obtain
fermentable sugar from agricultural products, weeds, and wood waste.
AS OF 2013

Award Winning Career

2010 Won the ‘Changyeongsil Awards’ for Biotector by KOITA
(Korea Industrial Technology Association)
2010 Selected ‘L-Lysine’ as a ‘World-Class Product’
2007 Selected ‘L-Threonine’ as a ‘World-Class Product’
2002 Selected ‘CJ Tides’ as a ‘World-Class Product’
2002 Selected ‘L-Threonine’ as one of the ‘Top 10 Korean Innovative Technologies of 2012’
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Future Business

BIO-Based Chemicals

BIO-Based Chemicals are environmentally friendly products made of

Global bio-plastic production
biological resources. As they are substitutes for chemical products (Unit: million ton)
made from petroleum-based resources, bio-based chemicals reduce
greenhouse gas emissions and thus contribute to the environment. 5.8
CJ CheilJedang Bio continues to work to develop products for the CAGR
73%
potential white bio market by converging chemical synthesis and catalyst
technology based on the micro-organism handling and process control
1.0 1.2
technologies that CJ has developed in the amino acid area. In addition,
CJ CheilJedang Bio aims to develop basic materials for high quality 0.25
molecular products used in IT, cars, fibers and other products through
2009 2010 2011 2016
the convergence technology of bio-based chemicals. (FORECAST)

Non-Edible Biomass

Biomass is a biological material that changes light energy into

biochemical energy through photosynthesis. Biomass is classified into
three categories; the starch type is derived from cornstarch or wheat,
the sugar type is derived from sugarcane and beet, and the fiber type
is derived from wood and rice straw. CJ CheilJedang Bio Business
conducts research on the ways to produce sugar from non-edible
biomass for the fiber type, instead of the edible starch and sugar types.
It commits to saving the edible plants and crops in order to contribute
to the food shortage problem and to save resources by transferring to
the use of biomass-based chemicals from petroleum-based chemical
products.
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BUSINESS OVERVIEW FINANCIAL HIGHLIGHTS

CJ Healthcare
Weight of business as % of sales Sales by year (Unit: billion won)
CJ CheilJedang Center, 330, Dongho-ro,
(As of 2013)
Jung-gu, Seoull / www.cjp.co.kr

2014 * 462.3
13.4%
2012 448.8
6.1%
CJ Healthcare, From a Domestic Leader to a Global Leader 2011 419.2

2010 361.2
CJ HealthCare was founded in 1984 and has established a firm lead in the Korean pharmaceutical market,
2009 289.3
particularly in ethical drugs(ETC) such as those treating cancer, problems with the circulatory system, diabetes, 80.5%
ETC 2008 339.8
and kidney disease, as well as API drugs, and in the health& beauty area. It acquired Hanil Pharmaceutical in 2004
H&B (Health&Beauty)
to reinforce its competitive edges in the pharmaceutical market. Over 200 professional researchers are engaged
Export * 2014 Sales Forecast
in R&D at CJ HealthCare to develop innovative therapeutic drugs for the circulatory system, metabolism,
gastrointestinal diseases, and cancer treatments. The company is committed to developing a pipeline for the
development of new drugs targeting gastrointestinal treatments, new anticancer drugs, bio drugs and renewed
therapeutic drugs through joint research with major hospitals, universities, and R&D venture companies.

BUSINESS AREA

HISTORY
1984 Started the pharmaceutical business.
Established a R&D center
1986 Completed Icheon Plant, launched the hepatitis
vaccine ‘Hepaccin-B’(only using locally developed
technologies)
1990 Completed the Daeso plant
1990 Launched the cephalosporin antibiotics ‘7-ACA’
1992 Completed the construction of a production facility
for intravenous solution
1992 Launched the hangover alleviation beverage ‘CONDITION’ Seoul National University)
1995 ‘Citopcin injection’ obtained the new technology mark
(KT Mark) and won the Changyeongsil Awards
1995 Developed pseudomonas aeruginosa vaccine,
a world first
1995 Reached over $100 million in export, a first for the
Korean pharmaceutical industry
1998 Launched the renal anemia treatment ‘Epokine’
(first in Korea, third in the world)
1999 ‘Epokine’ won the Changyeongsil Awards
2000 Launched OBU(Oncology Business Unit)
2000 Launched the new antiemetic ‘Campto,’
forging into the anticancer medicines market
2001 Established the CJ CheilJedang Pharma
New Jersey office
2002 Established the hepatitis B vaccine plant and began
exports to Myanmar
ETC | CJ Healthcare produces ethical drugs(ETC) for cancer, circulatory diseases, diabetes, and gastrointestinal
2003 Registered ‘Pseudovaccin,’ a pseudomonas diseases. CJ Healthcare achieved a Korea first with its development of the renal anemia treatment ‘Epokine,’
aeruginosa vaccine, and Korea’s 7th new drug. and has competitive ETCs including ‘Banan(antibiotics),’ ‘Herben(hypertension medicine),’ ‘Kremezine(Korea’s
2004 Acquired Hanil Pharmaceutical first uremia drug),’ and ‘Anfrade(Chronic Arterial Occlusive Disease drugs).’ It provides patients with basic and
2006 Merged Hanil Pharmaceutical into CJ Pharma
nutritional fluid products and works to improve public health.
2008 Entered into a joint investment agreement with
‘Neuralstem,’ a U.S. based stem cell research company to
API | CJ Healthcare is a leader in locally produced APIs which are the basis of high quality finished drugs. It
develop a therapeutic drug for the central nervous system
produces a range of APIs for oral drugs including cephalosporin antibiotics, leading the markets for finished drugs
2008 Participated in a cord blood project run by
the Seoul City government(investment in R&D by and APIs.
2010 Completed the construction of oral APIs H&B(Health&Beauty) | CJ Healthcare produces health/functional products along with ETC and API.
manufacturing buildings at Daeso Plant ‘CONDITION,’ which was launched in 1992 as a hangover alleviation drink, pioneered a new market and has
2010 Completed the construction of Osong Plant, remained number one in the market. ‘CONDITION’ has been improved through five renewals, and bolstered its
built to meet global standards leadership in the market for hangover alleviation drinks with the release of ‘Hutgae CONDITION,’ which contained
2011 Launched NBU(Nephrology Business Unit) and
Hutgae extract. ‘CONDITION Hut-gae-su’ launched the Hutgae tea market in Korea when it was released in 2010.
entered the kidney dialysis business
It became the number one Hutgae drink in the Korean market within just 16 months after launch, taking 50 per cent
2012 ‘CONDITION Hut-gae-su’ became the No.1 drink product
of the market share thanks to its clear concept and positioning.
in terms of market share (As of 2012 Neilson Research)
2012 Acquired a fluids manufacturing plant.
(Medi Pharma Plan Co.)
2012 Selected as an ‘Innovative Pharmaceutical Company’
by the Ministry of Health
2014 CJ CheilJedang Pharma established
‘CJ Healthcare’ Corporation
 CJ HEALTHCARE

21

Global Pharmaceutical Company,

CJ Healthcare
VISION

Heal
the World,
For the No. 1 Pharmaceutical Company
Better Life with Unmatched Global Competitiveness

CJ Healthcare has established a strong position in the domestic markets

for ETC(anticancer, circulatory, diabetes, and kidney-related disease) and
H&B(Health & Beauty). CJ Healthcare was the first Korean company to
MISSION develop a hepatitis vaccine with ‘Heppacin-B’ in 1986, and it went on to
launch the active pharmaceutical ingredient of cephalosporin antibiotics
We shall endeavor to build a disease-free world by developing and ‘7-ACA’ in 1991, with ‘Epokine(Erythropoietin)’ in 1998. ‘Epokine’ is a
providing innovative treatments and differentiated healthcare contents. genetically recombinant drug and it was Korea’s first and the world’s
third development of its kind. Moreover, CJ has an excellent R&D team
focused on R&D to develop drugs that treat cancer, circulatory disease,
metabolism, and gastrointestinal disease as well as bio drugs. The
newly developed gastrointestinal drug has been widely acclaimed for
CJ ONLYONE R&D center
CORE COMPETENCIES its competitiveness and is currently in the process of being licensed to
C J O N LY O N E R & D C e n t e r, c u r r e n t l y
foreign markets. under construction in 37,530m2(appx.
CJ Healthcare continuously explores and cooperates with promising 11,300 pyungs) of land spread over
R&D on new drugs Strategic C&D* for Globalized R&D ventures on an international scale. It has conducted a joint research 109,981m2 (appx.33,270pyungs) of gross
floor area , is a consolidated R&D center
and bio drugs accelerated R&D capabilities project with the Japanese ‘RaQualia Pharma’ and the U.S.A.-based
with a CJ Healthcare R&D center, food R&D
‘Neuralstem’ to develop a new drug for the global market. CJ Healthcare center, bio technology R&D center, and animal
completed the Osong plant in 2010, which is helping to propel CJ’s life R&D center. CJ ONLYONE R&D Center
will increase synergies by integrating new and
global business expansion with its advanced facilities and next-
existing R&D centers to lay the foundation
CJ Healthcare commits to contributing to society by enhancing public health based on its generation operational system. The Osong plant produces high quality for going global with world-class technical

philosophy of ‘Contributing to the National Economy.’ Its efforts to create the highest added finished products and cancer treatments, and pursues a CMO(Contract competence.

Manufacturing Organization) business with major foreign pharmaceutical

value for customers with its ONLYONE products and services have helped boost its social
companies. A production facility for bio drugs is soon to be added to
contributions. It has led the successful development of ‘EPOKINE,’ a renal anemia medicine, produce high quality bio drugs, including second generation EPOs that
a first for Korea and only the third in the world. It was developed at a time when Korea was are currently under development.
C J H e a l t h c a re c o m m i t s t o g o i n g g l o b a l a s t h e n u m b e r o n e
mostly dependent on imports.
pharmaceutical company in the global market, especially in China and
Southeast Asia. For this, it is leveraging its competitive new drugs and bio
* C&D: It is short for Connect and Development, meaning a joint research process to develop candidate substances through working in collaboration with promising
R&D ventures and universities internationally. It can shorten the development time for new treatments and promote mutual growth with partners. drugs and world-class production facilities.

22
ETC
CJ Healthcare successfully developed Korea’s first renal anemia drug
‘Epokine.’ It has since developed a number of IMDs and biomedicine
products in a range of areas, including for the circulatory system,
fluid, antibiotics, gastrointestinal diseases, kidney-related diseases,
endocrine system, CNS, cancer treatment, and urology. CJ Healthcare
is emerging as a top pharmaceutical company in the domestic market
with its more than ten blockbusters, including ‘Banan(antibiotics),’
‘Herben(hypertension medicine),’ ‘Kremezine(Korea’s first uremia drug),’
and ‘Anfrade(Chronic Arterial Occlusive Disease drugs).’
Sales by sector (as of 2012)
Gastrointestinal With therapeutic drugs for gastritis
medicine and reflux esophagitis, gastrointestinal
simulants and others, CJ Healthcare works
19.8 to the betterment of public health and
billion won globalization of the business by building a
strong drug development pipeline for the
next generation of drugs.
Endocrine CJ Healthcare contributes to enhancing
medicine the recovery and life quality of diabetics
with effective high-quality products. With its
37.4 continuous research and development into
billion won new drugs, it is bolstering its leadership in
the domestic market.
Antibiotics CJ Healthcare has a range of antibiotics
including ‘Banan.’ It is leading the domestic
antibiotic market with its diverse range of
51.7 products.
billion won
Fluids CJ Healthcare brings safety and conve-
nience to the medical environment by
releasing core nutritional fluid products,
60.5 as well as various other products. CJ
billion won Healthcare is a leader in the Korean fluid
market.
CJ HEALTHCARE
23
API
Based on its knowhow and original fermentation technology, CJ
Healthcare has started producing the active pharmaceutical ingredient
of cephalosporin antibiotics ‘7-ACA’ and reached over 100 million
dollars in exports, the first Korean pharmaceutical company to do so.
CJ’s Daeso plant produces the cephalosporin antibiotic ‘Banan’ and
other high quality antibiotics, finished pharmaceutical products and
APIs. Widely recognized for its advanced technology by major global
pharmaceutical companies, CJ exports API products to one of the major
Japanese pharmaceutical companies via CMO(Contract Manufacturing
Organization).
Kidney CJ Healthcare contributes to the life H&B(Health&Beauty)
quality and health of patients with chronic
kidneyrelated disease thanks to its range
42.9 o f d ru g s t h a t t re a t re n a l a n e m i a and CJ Healthcare has a range of health/functional products such as
billion won chronic renal failure, growing as a total care
‘Hutgae CONDITION,’ ‘CONDITION Hut-gae-su,’ ‘CONDITION
company through expanding its business
to dialysis.
Hwan,’ ‘Hongsamjin,’ and ‘Hongsamjin-Gold,’ all of which are best-
selling products. CJ Healthcare commits to providing consumers with
treatments for a healthier life.
Circulatory CJ Healthcare has the highest quality of
circulatory medicines available, including
for the treatment of high blood pressure,
69.3 abnormal hemostasis, and antithrombotic.
billion won It is realizing the dream of good health and a
longer life.
Anticancer CJ Healthcare has quality cancer treatment
and anti-emetic drugs that enable it to
lead the domestic cancer treatment drugs
55 market. It is extending its business to
Hutgae CONDITION, CONDITION Hwan Hongsamjin, Hongsamjin-Gold
billion won adjuvant chemotherapy to promote the life
CONDITION Hut-gae-su
quality of cancer patients.
‘CONDITION’ was launched in 1992 ‘CONDITION Hwan’ launched in ‘Hongsamjin,’ ‘Hongsamjin-Gold’ is a
and created a new market overnight 2012, which added more convenience healthcare drink made from red ginseng.
Anti-inflammatory, C J H e a l t h c a r e i s a l e a d e r i n a n t i - for anti-hangover drinks in Korea. The to carrying around the existing It comes in a bottle and a pouch form. It’s
respiratory, inflammatory, respiratory, neuropsy- sister product of ‘Hutgae CONDITION’ ‘CONDITION.’ It is made out of extracts a concentrate of 6 year old-red ginseng,
neuropsychiatry c h i a t r y, a n d u r o l o g y. W i t h i t s a n t i - is ‘CONDITION Hut-gae-su,’ which was of willow trees, dried orange peel, deer antler extract, and Ganoderma
and urology
inflammatory painkillers, asthma drugs, launched in 2010 and became the best and Maka, which help you to get rid lucidum. You can enjoy the flavor and
43.2 ADHD drugs and other diverse products,
it is growing as a leader in ETC.
drink made with Hutgae. of a hangover just by drinking it in the
morning after.
taste of real red ginseng.
billion won
 CJ HEALTHCARE

24 25

RESEARCH AREA

R&D Center
New drug
Biologicals
development

Building a Disease-Free World through

Natural Ceaseless Research and Innovation
Generic drug
medicines

R&D Established in 1984, CJ Healthcare R&D Center has made a number of

successes. It successfully developed Interferon in 1986, commercialized
the first generation hepatitis vaccine, and developed the active
pharmaceutical ingredient of cephalosporin antibiotics ‘7-ACA’ in 1989.
New It developed the anti-inflammatory enzyme ‘Kindorase’ in 1992 which
Combination technology won the Changyeongsil Awards. The R&D center has since gone on to
research launch ‘Cefotaxime,’ ‘Vancomycin,’ and ‘Cefazoline’ and was selected
as an excellent R&D center by the Ministry of Science and Technology in
Structure
1997 and won the second Changyeongsil Awards with the anemia drug
changes
‘Epokine’ in 1998.
CJ Healthcare set up a mid and long term strategy to meet the targets set
out in the 2025 Global Pharma Company vision. It works hard to develop
new drugs, IMDs(Incrementally Modified Drugs), and bio drugs. It plans to
launch IMDs and new drugs for circulatory system/metabolism such as
combination drugs for diabetes under a short-term goal, and to develop
a future engine growth to extend the pipeline for cancer treatment drugs,
gastrointestinal drugs and the bio beta pipeline to achieve its long-term
goals.
Moreover, CJ Healthcare will expand C&D(Connect & Development) for
LONG-TERM BASIS R&D
joint research and license it with major R&D ventures and universities,

Explore a leading Explore a candid which will shorten the time to develop candidate substances for new
Detect a disease Clinical trials Phase 1 Approval
substance to develop drugs and eventually lead to mutual growth with partners. CJ ONLYONE
CJ Healthcare R&D Center, playing a
R&D Center, which is under construction, consolidates four business leading role to grow as the 2025 global
A pharmaceutical industry is a technical and R&D-intensive industry. The process Phase 2 areas of food, bio, pharma and feed& livestock, to maximize the synergies pharmaceutical company through
from exploring a candidate substance to its development, clinical trials, approval aggressive R&D investment.
among its businesses. ‘CJ Healthcare R&D Center’ will lead its growth to
and production takes over 10 years and costs tens of billions of money on
become a 2025 global pharma company through aggressive R&D and
average. CJ Healthcare has a strong drugs development pipeline with synthetic Phase 3
new drugs, natural and bio drugs that enable it to move forward as a global
successful results.
pharmaceutical company by 2025.

26
CJ Healthcare’s successful entry into emerging markets including
China and Southeast Asia is helping it to emerge as a leader in the
global pharmaceutical market.
CJ HEALTHCARE
27
Infrastructure
With Cutting-Edge Facilities that
Produce Reliable and High-Quality Drugs
for the Global Market
CJ Healthcare produces quality drugs at its Osong, Icheon, and Daeso Production Infrastructure
plants through a strict quality control system. Its Icheon plant produces
bio drugs, its Daeso plant produces active pharmaceutical ingredients,
fluids, and cephalosporin antibiotics, and its Osong plant, which was
completed in 2010, produces cancer treatment drugs and finished
products. In particular, the Osong plant has a production facility that
meets the ‘cGMP’(Good manufacturing practice) standard required by
Icheon Plant • gene recombination products,
FDA/EU, which enables the plant to manufacture and manage products
vaccine, injection etc.
in accordance with the import regulations of the U.S.A. and other
advanced countries. Thus, the Osong plant is able to undertake out
the CMO business with major pharmaceutical companies. The Osong
Plant is production base that’s fit to compete on the global market and
was designed to enable expansion. The cutting-edge production facility
for bio drugs includes the second generation of EPOs, which is under
development at this moment, and will be built at the Osong plant. Daeso Plant • fluids, APIs, cephalosporin
antibiotics
CJ Healthcare has a EQMS(Enterprise Quality Management System)
in place with highly experienced experts in order to control quality at
every level from the development of drugs through to the use of drugs
by patients. It has implemented the highest level of CSV(Computer
System Validation) across all areas of the system. Moreover, CJ
Healthcare has introduced RFID, MES and LIMS systems to improve
the manufacturing and QC process. This has helped it to achieve cost Osong Plant • Cancer treatment, finished
savings and strengthen its competitive edge to compete at a global level. products
CJ Healthcare produces high quality drugs that meet the safety and
effectiveness standard and GMP standard by implementing an advanced
enterprise quality management system at all levels from the research and
development of a drug to the treatment.
28

Global Activities BUSINESS

NETWORK

A Global Pharmaceutical Company that’s

Active in International Markets

CJ Healthcare was not content to keep its sights solely on the domestic
market, as other pharmaceutical companies did, but seized the initiative to
expand internationally with APIs and finished pharmaceutical products that
leverage its expertise in biotechnology. In 1986, CJ Healthcare became the
first Korean company to develop the hepatitis vaccine ‘Hepaccin-B’ using
locally developed technology. CJ Healthcare in 1995 reached over 100
million dollars in exports, the first local pharmaceutical company to do so, and
successfully exported bio drugs with its renal anemia medicine ‘Epokine.’ CJ
Healthcare makes every effort to become a global pharmaceutical company
by growing together with its business partners in R&D and sales, sharing
results, and conducting joint R&D. It entered into a joint investment project
in 2008 with the U.S.A.-based stem cell research company ‘Neuralstem,’
to develop a therapeutic stem cell drug for the central nervous system and
completed a license contract on ‘RQ-4,’ the candidate substance to control
gastric acid with the Japanese ‘RaQualia Pharma’ in 2010. It has bolstered
its pipeline for gastrointestinal drugs in order to complete a license contract
on 5-HT4 partial agonist ‘RQ-10’ in 2011. It creates value by entering into a
license contract on various candidate substances and new drugs with major
pharmaceutical companies.

CJ Healthcare aims to be the number

one global pharmaceutical company and
GERMANY KOREA has been expanding exports to Japan,
Southeast Asia, South America, and
U.S.A.
CHINA JAPAN Europe based on the success it has already
achieved and its R&D investment. It commits
VIETNAM
to growing as a global pharmaceutical
company through continuous investment in
R&D for active growth internationally.
Headquarters Corporation Branch office
30

CJ Corporation CJ CheilJedang CJ E&M

12 CJ Center, 2 Gil, Sowal-ro, 330, Dongho-ro, Jung-gu, Seoul 66, Sangamsan-ro, Mapo-gu, Seoul
Jung-gu, Seoul CJ CheilJedang Center CJ E&M Center
TEL. 02-726-8114 TEL. 02-6740-1114 TEL. 02-371-5501
www.cj.net www.cj.co.kr FAX. 02-371-6340
www.cjenm.com
CJ Foodville
330, Dongho-ro, Jung-gu, Seoul CJ CGV
CJ CheilJedang Center 434, Worldcupbuk-ro, Mapo-gu, Seoul
TEL. 1577-0700 Sangam IT Tower
FAX. 02-6740-4349 TEL. 02-371-6660
www.cjfoodville.co.kr FAX. 02-371-6530
www.cgv.co.kr
CJ Freshway
330, Dongho-ro, Jung-gu, Seoul CJ HelloVision
CJ CheilJedang Center 396, Worldcupbuk-ro, Mapo-gu, Seoul
TEL. 02-2149-6114 Nuri Dream Square Business Tower
FAX. 02-2149-6098 TEL. 1855-1000
www.cjfreshway.com FAX. 02-376-6194
www.cjhellovision.com
CJ Healthcare
330, Dongho-ro, Jung-gu, Seoul CJ E&C
CJ CheilJedang Center 12 CJ Building, 2 Gil, Sowal-ro,
TEL. 02-6740-2119 Jung-gu, Seoul
FAX. 02-6740-2491 TEL. 02-726-9504
www.cjp.co.kr FAX. 02-726-9508~9509
www.cjenc.co.kr
CJ O Shopping
870-13, Gwacheon Daero, CJ Systems
Seocho-gu, Seoul Bundang First Tower, 55bun gil,
TEL. 02-2107-0112 Bundang-ro, Bundang-gu,
FAX. 02-2107-0562 Sungnam-si, Gyeonggi-do
www.CJmall.com TEL. 031-776-5999
FAX. 031-776-5777
CJ korea express
www.cjsystems.co.kr
53, 9 Gil, Sejong Daero, Jung-gu, Seoul
TEL. 02-3782-0114 CJ Powercast
FAX. 02-3782-0791 Vision World Building, 19, 180bun gil,
www.cjkoreaexpress.co.kr Seohyung-ro, Bundang-gu,
Sungnam-si, Gyeonggi-do
CJ Olive Young
TEL. 031-780-0001
12 CJ building, 2 Gil, Sowal-ro,
FAX. 031-780-0099
Jung-gu, Seoul
www.cjpowercast.co.kr
TEL. 1577-4887
FAX. 02-726-8799
www.oliveyoung.co.kr

CJ Educations
330, Dongho-ro, Jung-gu, Seoul
CJ CheilJedang Center
TEL. 02-2008-5800
FAX. 02-2275-8550
www.cjithink.com