Samsung Biologics has reached an agreement with Biogen for the buyout of the company’s stake in the Samsung Bioepis joint venture for $2.3bn.
The Board of Directors of Samsung Biologics has approved the transaction, through which payment for the shares will be made in instalments for the next two years, and full ownership will take effect at the time the first payment of $1bn is made. The board has also agreed to raise capital of approximately $2.5bn by issuing shares, the proceeds of which will be used to fund strategic growth plans, including the purchase of the Samsung Bioepis shares.
Biogen initially invested in a 15% stake in Samsung Bioepis when it was established as a joint venture in 2012. Under the terms of the original agreement, Biogen had the right to purchase up to 50% less one share of Samsung Bioepis, which it exercised in June 2018.
Samsung Bioepis has launched five biosimilars globally, three in autoimmune and two in oncology. Additionally, one product is about to be released in the market, and four biosimilars are in Phase III clinical trials. The full buyout of Biogen’s stake is reportedly expected to accelerate Samsung Bioepis’ biosimilar development capabilities and future performance in novel drug development, with improved autonomy and agility in business operations.
Meanwhile, Samsung Biologics will continue to its own biomanufacturing services, with existing firewalls between Samsung Bioepis, and expand its biopharmaceutical business in its three core drivers: capacity enhancement, additional business areas, such as mRNA and cell and gene therapies, and global expansion.