Samsung Biologics gets full custody over Samsung Bioepis
Samsung Biologics said Friday it is acquiring 49 percent of Samsung Bioepis from Biogen for $2.3 billion, making the biosimilar company its wholly-owned subsidiary.
Established in 2012 as a joint venture of Samsung Biologics and Biogen, Samsung held 51 percent of the biosimilar company while the Cambridge, Massachusetts-based company held the remaining 49 percent.
The deal this time around was made upon Biogen’s request, Samsung said, and the payment will be made over the next two years.
Samsung Biologics is planning to secure the funds by issuing new shares worth 3 trillion won ($2.5 billion).
“By holding 100 percent of Samsung Bioepis, Samsung Biologics will be able to acquire all of the accumulated technology and capacity the biosimilar company owns in all process including developing drugs, conducting clinical trials, gaining approvals and marketing," the Songdo, Incheon-based biopharmaceutical company said in Friday's release. "Samsung and Biogen will continue close cooperation even after the deal's conclusion."
Samsung Bioepis has a total of 10 biosimilar products and candidates. Five — three autoimmune treatments and two oncology treatments — are being used globally, and one product is set to be introduced within the first half after acquiring approvals last year from the U.S. Food and Drug Administration (FDA) and European Commission. Four candidates are currently undergoing Phase 3 clinical trials.
Biosimilars, according to the FDA, are products that are approved based on proof that they are highly biologically similar to other FDA-approved products. The drugs have no clinically meaningful differences in terms of safety or effectiveness from the reference product, but they cost less.
The global market for biosimilars, which was around $10 billion in 2021, is expected to grow to $22 billion in 2030.
Samsung Biologics rose 3.8 percent to close at 739,000 won Friday.
BY SARAH CHEA [firstname.lastname@example.org]