Samsung BioLogics acquired ₩2.8 trillion stake in Epis

Samsung Biologics acquired all Samsung Bioepis shares held by Biogen

View of Samsung BioLogics Plant 3 (Photo = Samsung BioLogics)

Samsung Biologics will acquire all of its shares in Samsung Bioepis held by its partner Biogen.

 

Stock purchase funds are raised through a paid-in capital increase in shareholder allocation.

 

Samsung BioLogics announced on the 28th that it has decided to acquire all 10,341,852 shares of Samsung Bioepis held by Biogen in the U.S.

 

for $2.3 billion (about 2.7655 trillion won).

 

Of the $2.3 billion cost of purchasing a stake in Samsung Bioepis, the acquisition price will be paid in installments over the next two years, excluding $50 million in "earn-out" costs, which will be additionally paid if certain conditions are met after the contract is signed.

 

The contract will take effect from the time the first payment of $1 billion is completed.

 

Biogen invested 15% of its stake when Samsung Bioepis was established in 2012.

 

In June 2018, Biogen chose a call option to take over 9,226,068 shares of Samsung Bioepis held by Samsung Biologics.

 

Biogen paid $700 million to Samsung Biologics, adding 50,000 won per share and interest.

 

As a result, Samsung Biologics and Biogen shared 50%+1 shares and 50%-1 shares of Samsung Bioepis, respectively.

 

Samsung Biologics also decided to raise 3 trillion won in paid-in capital.

 

The paid-in capital increase will be carried out in the form of a general public offering for forfeited shares after allocation of shareholders, and the number of issued shares is 5,009,000 shares.

 

Samsung Biologics plans to use 1.798 trillion won of the funds flowing into the paid-in capital increase as facility funds, and the remaining 1.2024 trillion won as funds to acquire shares in Samsung Bioepis.

 

Under the decision to purchase the stake, Samsung Biologics will secure 100% of Samsung Bioepis shares.

 

The company predicted that the acquisition of shares will accelerate preparations for the bio business.

 

This is because the autonomy and agility of decision-making are improved compared to the current equity structure, which can quickly promote mid- to long-term growth strategies such as the development of new pipelines, open innovation, and new drug development of Samsung Bioepis.

 

Samsung Bio's business has secured ▲CAPA No.

 

1 Samsung Biologics' CDMO business, ▲Samsung Bioepis' ability to independently develop proven biosimilar products, and ▲ the possibility of entering the new drug business, laying the foundation for a leap into a "global pharmaceutical company".

 

Samsung Bioepis is currently recognized for its competitiveness by launching a total of five biosimilar products, including three autoimmune disease treatments and two anticancer drugs, and one more is about to be released with permission, and four biosimilars are in phase 3 clinical trials.

 

The global biosimilar market is expected to continue to grow more than 8% annually from $10 billion in 2021 to $22 billion in 2030.

 

The antibody biosimilar market, which Epis focuses on, is expected to grow about 11% annually, leading the growth of the biosimilar market.

 

Samsung Biologics is currently constructing its fourth plant, the world's largest biopharmaceutical plant, and MultiModal Plant, which can produce various biopharmaceuticals at one plant, is also set to begin construction by the end of this yeear.

 

Samsung Biologics plans to complete an additional 350,000㎡ site contract for the second campus, which is larger than the site currently in use (270,000㎡), at Songdo District 11 in Incheon, by the end of this year.