21 April 2022 | Thursday | News
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Samsung Biologics (KRX: 207940.KS) announced today that it has completed the purchase of Biogen's stake in the Samsung Bioepis joint venture for USD $2.3 billion. With the completion of the first payment of USD $1.0 billion pursuant to the terms of the acquisition agreement, Samsung Biologics has now fully acquired Samsung Bioepis as a wholly owned subsidiary. The remaining USD $1.3 billion will be made in installments 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 USD $2.5 billion) raised by issuing new shares, the proceeds of which will be used to fund the company's strategic growth plans. The acquisition gives Samsung Bioepis 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.
Samsung Biologics will continue to deliver on its commitment to clients and shareholders by providing quality-driven CDMO biomanufacturing services. 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 350,000m2 for Bio Campus II, which will be 30% larger than the size of the current site for future growth.