Samba, Epis Wings... Leap to 'Bio Global Top Tier'

Completion of Biogen Stake Acquisition

Performance Reflected from Q2
Annual Sales of 3 Trillion KRW and Operating Profit of 1 Trillion KRW Expected This Year

The exterior view of Samsung Biologics' Plant 3 in Songdo, Incheon, and Samsung Bioepis' new headquarters (from left in the photo) (Photo by Samsung Biologics, Samsung Bioepis)

[Asia Economy Reporter Lee Chun-hee] Celebrating its 11th anniversary, Samsung Biologics has embarked on a leap toward becoming a global top-tier bio company through the full acquisition of Samsung Bioepis as a wholly owned subsidiary.

On the 21st, marking its 11th anniversary, Samsung Biologics announced, "Through the acquisition of Bioepis, we will advance as a global integrated bio company with three pillars: Contract Development and Manufacturing Organization (CDMO), biosimilars (biopharmaceutical generics), and new drugs." Samsung Biologics disclosed yesterday that it has paid the first installment of $1 billion (approximately 1.2345 trillion KRW) to Biogen for acquiring shares of Bioepis.

This payment follows the contract signed in January, under which Samsung Biologics acquired all shares of Bioepis previously held jointly by the two companies. Accordingly, Bioepis has officially become a 100% subsidiary of Samsung Biologics. From the second quarter, Bioepis’s performance will be reflected in the financial statements, with annual sales expected to surge to 3 trillion KRW and operating profit to 1 trillion KRW.

Bioepis was established in 2012 as a Samsung-centered joint venture with Samsung Biologics holding 85% and Biogen 15% of the shares. However, in June 2018, Biogen exercised a call option to purchase up to ‘50%-1 share (10,341,852 shares)’ of Bioepis stock secured at the time of the establishment contract, changing the ownership structure.

This contract was finalized after Biogen requested Samsung Biologics to purchase all these shares. This is analyzed to be due to Biogen’s management difficulties following challenges in the market entry of the Alzheimer’s treatment drug ‘Aduhelm.’ The total contract amount is $2.3 billion (approximately 2.8394 trillion KRW), with $2.25 billion to be paid in installments over two years until 2024, and $50 million subject to additional payment in 2027 depending on certain conditions.

With the completion of Bioepis’s transition to a wholly owned subsidiary, Samsung’s bio business expansion is expected to gain further momentum. It is evaluated that the synergy between Samsung Biologics’ CDMO and Bioepis’s biosimilars and new pipeline development will be significant. Currently, Bioepis has launched five biosimilar products globally, including three autoimmune disease treatments and two anticancer drugs, earning recognition for competitiveness. It is also accelerating pure new drug development beyond biosimilars, such as co-developing the acute pancreatitis drug candidate ‘SB26’ with Japan’s Takeda Pharmaceutical.

The successful completion of a 3.2 trillion KRW paid-in capital increase during the Bioepis acquisition funding process has secured not only the acquisition funds but also financing for the completion of Plant 4, and the establishment of Plant 5 and the 2nd Bio Campus (Plants 6?9), thereby securing growth drivers in the increasingly competitive CDMO market.

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