Samsung Biologics said Wednesday that it officially incorporated Samsung Bioepis as a wholly-owned subsidiary.
The announcement follows Samsung Biologics completing its first payment of the $1 billion to Biogen regarding the acquisition of Samsung Bioepis.
Biogen had owned 50 percent minus one share in Samsung Bioepis since it established the biosimilar joint venture with Samsung Biologics in 2012. However, Biogen requested Samsung Biologics to buy out their shares for $2.3 billion, and the two companies finalized the deal in January.
Under the accord, Samsung Biologics will pay the acquisition price in installments over the next two years, excluding $50 million in earn-out, payable if Biogen meets certain commercial milestones. The two companies agreed that the contract would become effective when Samsung Biologics completed its first payment.
As Bioepis is now a wholly-owned subsidiary, Samsung Biologics expects that it will be able to make independent and rapid decisions, which, in turn, will help Bioepis pursue mid- to long-term growth strategies such as new pipeline development, open innovation, and new drug development more quickly and flexibly.
Samsung Biologics stressed that it plans to leap forward toward a global bio company, starting with the acquisition of Bioepis.
By internalizing Bioepis' biopharmaceutical R&D capabilities, the company aims to expand its business portfolio to new drug development in the long term.
The company has secured the investment resources needed to make such a new leap forward.
According to Biologics, the company raised a total of 3.2 trillion won ($2.5 billion) in funds through a capital increase, participated in by its employees and existing shareholders.
Samsung Biologics said that it plans to continue making bold and preemptive investments to secure future growth engines by using the secured investment resources for the construction of the fourth plant, the purchase of additional factory sites, and the equity stake in Bioepis.
"The capabilities and know-how possessed by Bioepis will serve as a stepping stone for Samsung's bio business to leap forward into the global top tier," Samsung Biologics CEO John Rim said.
To reward shareholders for their help in the successful acquisition, the company will continue to invest actively and solidify its global leadership position in the contract development and manufacturing organization (CDMO), and move forward as a global comprehensive biopharmaceutical company based on the capabilities it has accumulated in the biosimilar business, he added.