Synopex Inc., a Korean water treatment system filter and semiconductor component manufacturer, is diversifying its business into the production of hemodialyzers and filter modules whose market is valued at about 1.3 trillion won ($1.18 billion) in Korea alone.

The company said on Wednesday it has entered into a license agreement to introduce a production line for hemodialysis filter modules and related technologies from Germany’s Alpha Plan.

Under the contract, Synopex will have exclusive rights to the distribution of Alpha Plan’s equipment to produce dialyzers in Korea until 2023. With the license agreement, Synopex will initially secure 2 million filter modules for hemodialysis per year, from which it expects to generate some 200 billion won in annual sales.

Alpha Plan is a global leader in dialyzer assembly equipment, having supplied medical technology equipment to customers in 20 countries, including B. Braun, one of the world’s top three providers of dialysis products and services.

Korea has relied on imports for hemodialyzers and filter modules that mostly come from the U.S., Germany and Japan.

Synopex is planning to build a KGMP-compliant production line at its local site in Dongtan using production facilities from Alpha Plan and file for regulatory approval of its products. The production facility is capable of producing 0.8-2.0 square meter membranes that can cover filter modules for all spec hemodialyzers used in Korea, making it possible to replace imported products.

Synopex has prepared to enter the medical device and medical filter business based on its membrane filter material technology. It is currently working together with Seoul National University Hospital for a state-funded project to localize a hemodialyzer.

Synopex shares surged 18.12 percent to end at 4,660 won on Wednesday.

By Ahn Byung-joon and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]