Biotechnology company Samsung Biologics has announced it will buyout Biogen’s stake in the Samsung Bioepis joint venture for $2.3 billion.
The deal means that Samsung Biologics will take full ownership of Samsung Bioepis, cementing the biotech’s position in the biosimilars market.
Biogen initially invested a 15% stake in Samsung Bioepis when it was first established in 2012. The original agreement for the joint venture would have allowed Biogen to purchase up to 50% less one share of Samsung Bioepis, which it exercised in June 2018.
Samsung Bioepis has successfully launched five biosimilars globally, three in autoimmune and two in oncology. The business is also about to launch another product onto the market and has four biosimilars in Phase 3 clinical trials. The full buyout of Biogen’s stake is expected to accelerate Samsung Bioepis’ biosimilar development capabilities and future performance in novel drug development.
Payment for Biogen’s shares will be made in instalments over the next two years, and full ownership will take effect at the time the first payment of USD $1.0 billion is made.
Samsung Biologics’ board of directors have also agreed to raise $2.5 billion in capital by issuing new shares, the proceeds of which will be used to fund the company’s strategic growth plans, including the purchase of the Samsung Bioepis shares.
Samsung Biologics is targeting key areas in delivering continued capacity enhancement and establishing its presence in new business areas, such as mRNA and cell and gene therapies. The company is currently building a fourth biomanufacturing plant and will begin construction this year of a new facility, which will offer multi-modal product services.
In addition, the company 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.