SOUTH KOREA – Samsung Biologics has completed the US$2.3 billion acquisition of Biogen’s stake in the Samsung Bioepis joint venture.

Samsung Biologics signed a stake acquisition agreement in January of this year.

According to the terms of the agreement, Samsung Biologics made an initial cash payment of US$1 billion and fully acquired Samsung Bioepis as its wholly owned subsidiary.

Samsung Biologics intends to pay the remaining US$1.3 billion in instalments over the next two years. The acquisition was paid for with a portion of a US$2.5 billion (KRW3 trillion) paid-in capital increase obtained by issuing new shares.

Furthermore, the proceeds will be used to support Samsung Biologics’ strategic growth plans.

The acquisition of the joint venture will provide Samsung Bioepis with increased autonomy and agility in business operations, resulting in faster sales growth and higher operating margins.

It will also provide the company with biosimilar development expertise as well as future performance in new drug development.

To date, Samsung Bioepis has introduced five biosimilars globally, three in the autoimmune and two in the oncology sectors.

In addition, a product is about to hit the market, and four biosimilars are currently in Phase III clinical trials.

Samsung Biologics CEO and president John Rim said: “The announcement marks a significant milestone for Samsung Biologics in our continued venture into the biosimilar business and accelerating biosimilar growth.

“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.”

Samsung Biologics stated that it intends to continue making bold and foresighted investments to secure future growth engines, including the construction of the fourth plant, the purchase of additional factory sites, and the equity stake in Bioepis.

At present, the company is setting up Plant 4, which is anticipated to become partially operational in October this year.

It is also working on obtaining additional 350,000m² land for Bio Campus II, which is planned to be 30% bigger than the existing site.

“Bioepis’ capabilities and know-how will serve as a stepping stone for Samsung’s bio business to leap forward into the global top tier,” said Samsung Biologics CEO John Rim.

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