Samsung Biologics buys full stake in Samsung Bioepis from Biogen at $2.3 bn

[Source: Samsung Biologics Co.]

Samsung Biologics Co. will take full command over Samsung Bioepis Co., a biosimilar joint-venture with Biogen Therapeutics Inc., by acquiring the entire holdings of the U.S. partner for $2.3 billion.

Samsung Biologics on Friday has disclosed that it will take over 10,341,852 shares (50 percent stake minus 1 share) in Samsung Bioepis from Biogen Therapeutics for $2.3 billion. The stake transfer will take place on April 30, 2022.

Around noon, Samsung Biologics shares gained 3.65 percent to trade at 739,000 won ($613).

The company will make cash payment in installment over two years with its cash reserves and proceeds from new rights offering. The exchange was proposed by the American drug maker, and the two will maintain partnership despite the end of the JV established in 2012, Samsung¡¯s consigned drug producer said in a press release.

The company separately announced rights offering in the scale of 5,009,000 in common shares at 599,000 won apiece to raise 3 trillion in total - 1.2 trillion won for Samsung Bioepis stake acquisition and 1.8 trillion won for fourth bioreactor construction and additional facility expansion.

The exchange becomes official after Samsung pays $1 billion to Biogen.

The company plans to leverage on Bioepis¡¯s developmental capabilities and fasten novel drug exploration upon full command over the biosimilar unit.

Samsung Bioepis currently markets five biosimilar drugs globally and one is ready for marketing upon approval. Four others are under Phase 3 clinical trials. The biosimilar market is projected to grow to $22 billion by 2030 from $10 billion in 2021.

Samsung Biologics is constructing fourth plant in Songdo complex. Also, a multi-modal plant, where different types of bio drugs can be produced at the same time, would break grounds this year. It plans to buy a land site bigger than the Songdo complex for additional expansion.

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