April 19, 2024

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[THE INVESTOR] Samsung C&T, the de facto holding firm of Samsung Group, on April 10 denied news reports that it is considering buying shares in its sister biopharmaceutical unit Samsung Bioepis in a bid to sharper focus on the sector.

“Samsung C&T is reviewing various measures to secure growth engine for the future, but the firm is not planning at the moment to buy a stake in Samsung Bioepis,” the company said in a statement.

Samsung Bioepis is a joint venture between contract drug manufacturer Samsung BioLogics and US biotech Biogen, with its business banking on the development of lower-priced replicas of biologic drugs. It has five biosimilar drugs approved in Europe and one in the US.

Earlier on the day, local media reported that Samsung C&T has started talks with Biogen to purchase a 30 percent stake in the affiliate with plans to raise up to 3 trillion won for the pending deal.

Currently, Samsung BioLogics and Biogen hold 94.6 percent and 5.4 percent stake in Samsung Bioepis, respectively. Biogen owns a call option that allows it to increase its stake in the joint venture up to 49.9 percent by the end of this year.

Biogen has been keeping mum on the issue, but market watchers expect that the company is likely to seek a bigger stake in Samsung Bioepis as its market value has been growing rapidly thanks to its strong biosimilar pipeline. The US firm could not be reached for comment.

Since the establishment of Samsung BioLogics in 2011 and Samsung Bioepis in 2012, the nation’s largest conglomerate has been investing heavily on expanding manufacturing facilities and attracting scientists for drug development. The two firms that have not yet made net profits are widely expected to enjoy a turnaround this year.

By Park Han-na (hnpark@heraldcorp.com)