Samsung Biologics has completed the purchase of Biogen’s stake in the Samsung Bioepis joint venture for $2.3bn. With the completion of the first payment of $1.0bn pursuant to the terms of the acquisition agreement, Samsung Biologics has now acquired Samsung Bioepis as a wholly owned subsidiary. The remaining $1.3bn will be made in instalments over two years.
“Today’s announcement marks a significant milestone for Samsung Biologics in our continued venture into the biosimilar business and accelerating biosimilar growth,” said John Rim, CEO and President of Samsung Biologics. “By leveraging our extensive experience as a leading CDMO, we will further contribute to saving lives of the patients and address a wide array of diseases.”
The purchase was funded by a portion of paid-in capital increase of KRW 3 trillion (approximately $2.5bn) raised by issuing shares, the proceeds of which will be used to fund the company’s strategic growth plans. According to Samsung Biologics, the acquisition gives the subsidiary improved autonomy and agility in business operations, accelerating sales growth, operating margin improvements, as well as biosimilar development capabilities and future performance in novel drug development.
The company is currently building Plant 4, which will partially become operational in October 2022. In addition, Samsung Biologics is in the process of securing additional land of 350,000 sqm for Bio Campus II, which will be 30% larger than the size of the current site for future growth.
