April 25, 2024

• 

[THE INVESTOR] Samsung Group is setting up a new mergers and acquisitions fund for biotech firms at its Silicon Valley headquarters in its latest push into the nascent but lucrative business.

According to Korea Economic Daily on Dec. 28, Samsung Electronics, Samsung C&T and other Samsung units are considering funding the new fund that is expected to be set up early next year. 

Samsung Electronics' Silicon Valley headquarters

Samsung currently operates two M&A organizations in Silicon Valley -- Samsung Strategy and Innovation Center and Samsung Global Innovation Center -- that have purchased some 100 tech firms over the past years, including Harman International, LoopPay, SmartThings and Viv Labs.

The report said Samsung has named Cuong V Do, senior vice president of Samsung Economic Research Institute, as the head of the new fund. The Vietnamese-American, former McKinsey partner, joined Samsung three years ago to lead the group’s top consulting team Global Strategy Group consisting of some 100 foreign talents that offer consultations when Samsung companies enter a new business or their existing businesses struggle.

"It is true that we are looking into M&A opportunities. But I woudn't say we are setting up a fund," a Samsung spokesperson told The Investor on condition of anonymity.

Samsung entered the biotech industry in 2010 with aims to nurture a new growth engine business. The nation's largest conglomerate established Samsung BioLogics, a biologic drug manufacturer, in 2011 and Samsung Bioepis, a biosimilar developer in partnership with US-based Biogen, in 2012.

Samsung BioLogics, which made a hot stock debut on KOSPI in November, aims to see 60 trillion won in sales and 4 trillion won operating profit by 2020.

By Lee Ji-yoon (jylee@heraldcorp.com)