Samba Secures 100% Stake in Epis... "New Business Momentum Accelerates"

[Asia Economy Reporter Myunghwan Lee] Samsung Biologics is expected to accelerate its new business initiatives after securing 100% ownership of its affiliate Samsung Bioepis.

According to the securities industry on the 1st, Samsung Biologics announced on the 28th of last month that it will purchase 10,341,852 shares of Bioepis held by U.S. company Biogen for $2.3 billion (approximately 2.7655 trillion KRW). This corresponds to '50% minus one share' of the total shares of Bioepis. Combined with the '50% plus one share (10,341,853 shares)' that Biologics already owned, Bioepis will be incorporated as a subsidiary of Biologics.

Samsung Biologics explained that with this stock acquisition, it can internalize Samsung Bioepis's research and development (R&D) capabilities in addition to its existing biopharmaceutical contract development and manufacturing organization (CDMO) capabilities.

Samsung Biologics also announced that it plans to raise a total of 3 trillion KRW through a paid-in capital increase to secure investment funds necessary for the acquisition of Bioepis shares and business expansion.

Hana Financial Investment interpreted that part of the funds from this capital increase will be related to the expansion of campus land. Jae-kyung Park, a researcher at Hana Financial Investment, said, "(Samsung Biologics) plans to use 1.8 trillion KRW of the 3 trillion KRW for facility funds and 1.2 trillion KRW for acquiring Samsung Bioepis shares," adding, "The 1.8 trillion KRW for facilities can be interpreted as funds for securing land for the second bio campus and future expansion."

Regarding the stock purchase price, Hana Financial Investment analyzed it as an appropriate level. Researcher Park explained, "The purchase price of 2.7655 trillion KRW for Samsung Bioepis shares has no premium compared to the book value of Samsung Bioepis at 2.6619 trillion KRW as of the third quarter of last year."

He emphasized, "This acquisition enables faster decision-making at Samsung Bioepis," and added, "We view positively the ability to rapidly advance new businesses such as biosimilars and new drug development."

This content was produced with the assistance of AI translation services.