[Click eStock] Positive Outlook on Samsung Bioepis Share Acquisition

[Asia Economy Reporter Hwang Junho] Daishin Securities announced on the 8th that it will maintain the target price of Samsung Biologics at 1,000,000 KRW without any change in relation to the acquisition of Samsung Bioepis shares by Samsung Biologics.

Samsung Biologics disclosed on the 28th of last month that it decided to acquire 50%-1 share (10,341,852 shares) of Samsung Bioepis held by Biogen for 2.3 billion USD (2.7655 trillion KRW). Accordingly, Samsung Biologics will secure 100% ownership of Bioepis.

The acquisition amount will be paid in cash in installments: 1 billion USD on the closing date of the transaction on April 30, 813 million USD within one year from the closing date, and 438 million USD within two years. Additionally, up to 50 million USD in earn-out payments will be made by 2027 depending on whether certain conditions are met.

Samsung Bioepis was established in 2012 as a joint venture between Samsung Biologics and Biogen. At that time, Biogen invested approximately 50 billion KRW to acquire a 15% stake and later exercised a call option in 2018, investing a total of 813.5 billion KRW to secure 50%-1 share.

In this regard, Samsung Biologics disclosed that it decided to conduct a rights offering of 5,009,000 common shares at an expected issue price of 599,000 KRW per share, amounting to approximately 3 trillion KRW.

Of the 3 trillion KRW, 1.2 trillion KRW will be used for acquiring Bioepis shares. The remaining 1.8 trillion KRW will be raised for facility funds. The 1.8 trillion KRW for facility funds will be used for the construction of the 4th plant (900 billion KRW), purchase of the 2nd complex site (400 billion KRW), construction of the multi-modality 5th plant (300 billion KRW), and other maintenance (200 billion KRW).

Yunjin Lim, a researcher at Daishin Securities, stated, "Through securing 100% ownership of Bioepis, Samsung Biologics can independently make decisions and promote research and development across all fields including CDMO, biosimilars, and new drug development," adding, "Based on Bioepis’s biosimilar R&D and business capabilities, we expect accelerated new drug development projects and securing mid- to long-term growth drivers."

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