Samsung Transforms Its Bio Business into an "Investment-Driven" Powerhouse

Spin-Off of Samsung Biologics Approved at Shareholders' Meeting
Samsung's Bio Division Ushers in a New Era

The bio division of Samsung Group has officially taken its first step toward transforming from "Samsung of Manufacturing" to "Samsung of Investment." Through the spin-off of Samsung Biologics, the company has added an investment strategy to its existing manufacturing and development capabilities. At the group level, this move is seen as a concrete step toward firmly establishing bio as the "third pillar of growth," following semiconductors and batteries.

John Lim, CEO of Samsung Biologics, is speaking at the extraordinary general meeting of shareholders held on the 17th at Songdo Convensia in Incheon. Samsung Biologics

On October 17, Samsung Biologics held an extraordinary general meeting of shareholders at Songdo Convensia in Incheon, where the proposal for the spin-off was approved with 99.9% of attending shareholders voting in favor. As a result, the investment division of Samsung Biologics will be separated to establish a new entity, Samsung Epsis Holdings. Samsung Biologics, as the surviving company, will continue its existing contract development and manufacturing (CDMO) business. Samsung Epsis Holdings, as a pure holding company, will inherit 100% ownership of Samsung Bioepis, which is responsible for the development and commercialization of biosimilars, and will oversee subsidiary management and new investments.

John Lim, CEO of Samsung Biologics and chair of the shareholders' meeting, stated, "This spin-off is intended to resolve concerns about conflicts of interest among client companies and to maximize the potential of both the CDMO and biosimilar businesses. After the spin-off, Samsung Biologics will expand its unrivaled manufacturing capabilities as a pure CDMO, and strengthen its global competitiveness by broadening its portfolio to include antibody-drug conjugates (ADC) and cell and gene therapies (CGT)."

Samsung Biologics and Samsung Epsis Holdings plan to further solidify independent decision-making systems through this spin-off, thereby strengthening the competitiveness of each business and enhancing both corporate and shareholder value.

The newly established Samsung Epsis Holdings is designed to serve as a "platform" for bio technology development and investment. It will have Samsung Bioepis, a biosimilar development company, as a wholly owned subsidiary, and will pursue next-generation technology discovery, joint drug development, and mergers and acquisitions (M&A) through the holding company and new subsidiaries. Collaboration with Samsung Electronics' Future Business Planning Division and Samsung Venture Investment is also anticipated. Industry insiders comment, "If Samsung Biologics represents 'Samsung of Manufacturing,' then Samsung Epsis Holdings marks the beginning of 'Samsung of Investment.'" The new subsidiary developing the bio technology platform will focus on ADC, a next-generation modality. The core of its business is developing a "dual-antibody structure design platform for ADC."

Samsung Biologics, which will become a pure CDMO company, plans to continue its growth strategy with the goal of becoming a "global top-tier CDMO." Although Samsung Biologics and its subsidiary Samsung Bioepis have maintained a strict separation of business operations, some clients have expressed concerns about potential conflicts of interest with the biosimilar business. This spin-off is expected to resolve those concerns, while also strengthening partnerships and order competitiveness with clients. Centered around its five plants in Songdo, Incheon, Samsung Biologics has secured an annual production capacity of 784,000 liters, the largest in the world. In April of this year, the company completed construction of its fifth plant, which includes an ADC production line, and is currently ramping up its production capacity.

At the group level, this spin-off is expected to be a watershed moment in building a "Samsung-style bio ecosystem." With Samsung Biologics handling production and Samsung Epsis Holdings overseeing development and investment, the group will complete a triangular structure of "production-development-investment." In the medium to long term, this move is expected to significantly increase the likelihood that bio will become another core pillar of growth, following semiconductors.