바이오스펙테이터

by Sungmin Kim

Samsung Biologics officially incorporated Samsung Bioepis as a 100% subsidiary.

Samsung Biologics announced on the 20th that it had completed the payment of the first payment (US$1 billion) to Biogen for the acquisition of shares of Bioepis. From the day when the first down payment was completed according to the contract between the two companies, Bioepis was officially converted into a 100% subsidiary of Samsung Biologics.

John Rim, President of Samsung Biologics, said, “The capabilities and know-how possessed by Epis will serve as a stepping stone for Samsung’s bio business to leap into the global top tier. While we continue to make active investments to solidify our global leadership position in CDMO, we will move forward as a global biopharmaceutical company based on the capabilities we have accumulated in the biosimilar business.”

In January, Samsung Biologics signed a contract with Biogen to acquire 10,341,852 shares (50 % - 1 share) of Bioepis owned by Biogen for $2.3 billion. Of the total amount, $50 million corresponds to an additional earn-out fee that is paid when certain conditions are met, and the remaining $2.25 billion is to be paid in installments over the next two years.

As the joint management system with Biogen is transformed into a single management system of Samsung Biologics, the company predicted that independent and rapid decision-making on Bioepis will be possible. Through this, it is expected that mid- to long-term strategies such as Bioepis' new pipeline development, open innovation, and new drug development will be promoted more quickly and flexibly.

In particular, Samsung Biologics plans to take a leap forward towards a global bio company, starting with the acquisition of Epis. By internalizing Bioepis' biopharmaceutical R&D capabilities, it is expected that in the long term, it will be able to expand its business portfolio to new drug development.

Investment funds for a new leap forward were secured through paid-in capital increase. It achieved a high subscription rate of more than 100% in the paid-in capital increase public subscription for the employee stock ownership association and existing shareholders, and succeeded in raising a total of 3.2 trillion won. The public offering of 400 billion won worth of shares for executives and employees recorded a subscription rate of nearly 100%, while existing shareholders such as Samsung C&T and Samsung Electronics made 100% subscriptions.

Samsung Biologics plans to continue investing to secure future growth engines by using the secured investment resources for the construction of the 4th factory and the purchase of additional sites along with the purchase of the equity stake in Bioepis.