LG CNS Invests KRW10 Billion in Cha Bio Group to Launch Digital Healthcare Business

MT Newswires Live01-15

LG CNS (KRX:064400) signed a partnership agreement with Chabiotech (KOSDAQ:085660) on Wednesday for an equity investment of 10 billion won, under which it will launch a full-scale digital healthcare business with Cha Bio Group.

In the short term, LG CNS will migrate CHA Biotech Group's systems to cloud infrastructure, build an integrated big data platform, and apply AI to optimize therapeutics production, according to a Thursday release.

In the long term, the two parties plan to commercialize an AI-based connected healthcare service that analyzes medical, genetic, and lifestyle data to detect health risks and sends automated responses. The firms are also considering global expansion, using CHA Biotech Group's hospital network in the US, Singapore, Australia, and Japan.

Shares of the AX specialist rose nearly 1% in recent trade while those of Chabiotech increased over 1%.

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