Samsung Biologics to Acquire Full Ownership of Samsung Bioepis in $2.3 Billion Deal

On Jan. 27, 2022, Samsung Biologics announced that it has reached an agreement with Biogen to buy out Biogen’s 50% stake in their previously formed Samsung Bioepis joint venture for $2.3 billion.

The transaction has been approved by Samsung Biologics’ board of directors, and payment for the shares will be made in installments over the next two years. Under the agreement, full ownership will take effect at the time the first payment of $1.0 billion is made. The Samsung Biologics board has also agreed to issue new shares to raise KRW 3 trillion (approximately US$2.5 billion) in capital. Proceeds from this capital will be used to fund the company’s strategic growth plans, including the purchase of the Samsung Bioepis shares, Samsung Biologics stated in a company press release.

Initially, Biogen had invested in a 15% stake in Samsung Bioepis when it was established in 2012. Under the terms of that original agreement, Biogen had the right to purchase up to 50% less one share of Samsung Bioepis, which Biogen exercised in June 2018.

The full buyout of Biogen’s stake by Samsung Biologics is expected to accelerate Samsung Bioepis’ biosimilar development capabilities and future performance in novel drug development. Samsung Bioepis has thus far launched five biosimilars globally, three in autoimmune and two in oncology. Another product is about to be released as well, and the company currently has four biosimilars in Phase III clinical trials.

Samsung Biologics is currently building Plant 4 and will begin construction this year of a new facility, Plant 5, which will offer multi-modal product services. The company is also in the process of securing an additional 350,000 m2 of land for its Bio Campus II, which will be 30% larger than the size of the current site.

Source: Samsung Biologics