SOUTH KOREA – Samsung Biologics announced that it has agreed to pay US$2.3 billion for Biogen’s stake in their nearly decade-long biosimilars joint venture Samsung Bioepis.

The announcement follows a recent report claiming that Samsung was in talks to buy out Biogen entirely for potentially more than US$40 billion, rumors that the South Korean conglomerate quickly denied.

When Samsung Bioepis was formed as a joint venture in 2012, Biogen initially invested in a 15% stake. Biogen had the option to purchase up to 50% less one share of Samsung Bioepis under the terms of the original agreement, which it exercised in 2018.

Samsung Biologics stated that payment for Biogen’s shares will be made in installments over the next two years, with the Korean company assuming full ownership following the first payment of US$1 billion.

Taking over Biogen’s stake, according to Samsung, will allow for “improved autonomy and agility in business operations,” which will aid in the acceleration of Samsung Bioepis’ biosimilar development capabilities and future performance in novel drug development.

The transaction is expected to be earnings accretive beginning in 2022.

Biogen is currently in charge of selling these knockoffs in Europe, with the option of handling the Chinese market as well. These drugs brought Biogen US$610.2 million in the first nine months of 2021, up 2% year on year.

six biosimilars have been approved

So far, the joint venture has launched five biosimilars globally. These include autoimmune treatments Hadlima/Imraldi, which refers to AbbVie’s Humira (adalimumab); Renflexis/Flixabi, which refers to Johnson & Johnson’s Remicade (infliximab); and Eticovo/Benepali, which refers to Amgen’s Enbrel (etanercept).

Samsung Bioepis has also launched two oncology products, Ontruzant and Aybintio/Onbevzi, which are follow-on biologics to Roche’s Herceptin (trastuzumab) and Avastin (bevacizumab).

Byooviz, a sixth biosimilar product, is based on Roche’s Lucentis (ranibizumab) and is used to treat wet age-related macular degeneration.

It has been approved in the EU, the United Kingdom, and, most recently, the United States, where it will be allowed to be marketed beginning in June as part of an agreement with Roche’s Genentech unit.

In addition, Samsung stated that it has four biosimilar candidates in Phase III trials.

Branching into gene therapies

Meanwhile, Samsung Biologics stated that it plans to expand globally and expand into new business areas such as mRNA and cell and gene therapies.

It also plans to keep providing biomanufacturing services. The company is currently constructing Plant 4, which it claims will “break its own record of holding the world’s largest biomanufacturing capacity.”

The site in Songdo, South Korea, is expected to begin partial operations in October. Samsung Biologics also intends to begin construction on Plant 5, which will provide multi-modal product services, this year.

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