Samsung shells out $2.3 billion for Biogen stake in biosimilar joint venture
Samsung Biologics announced Thursday that it has agreed to buyout Biogen's stake in their nearly decade-long biosimilars joint venture Samsung Bioepis for $2.3 billion. The news follows a recent report claiming Samsung was negotiating to takeover Biogen entirely for potentially over $40 billion, rumours the South Korean conglomerate quickly denied.
Biogen initially invested in a 15% stake in Samsung Bioepis when it was set up 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 2018.
Samsung Biologics said payment for Biogen's shares will be made in installments over the next two years, with the Korean company taking on full ownership once the first payment of $1 billion is made. According to Samsung, taking over Biogen's stake will allow for "improved autonomy and agility in business operations" to help accelerate Samsung Bioepis' biosimilar development capabilities and future performance in novel drug development. The transaction is projected to be accretive to earnings from 2022 onwards.
Six approved biosimilars so far
The joint venture has so far launched five biosimilars globally. These include autoimmune treatments Hadlima/Imraldi referencing AbbVie's Humira (adalimumab); Renflexis/Flixabi referencing Johnson & Johnson's Remicade (infliximab); and Eticovo/Benepali referencing Amgen's Enbrel (etanercept). Samsung Bioepis has also launched two products in oncology – Ontruzant and Aybintio/Onbevzi, which are follow-on biologics of Roche's Herceptin (trastuzumab) and Avastin (bevacizumab), respectively.
A sixth biosimilar product, Byooviz, references Roche's Lucentis (ranibizumab) for the treatment of wet age-related macular degeneration. It has been approved in the EU, UK and most recently in the US, where it will be allowed to be marketed starting this June, as part of an agreement with Roche's Genentech unit. Samsung noted that it also has four biosimilar candidates in Phase III trials.
Branching into mRNA, cell and gene therapies
Meanwhile, Samsung Biologics said it is looking to grow in new business areas such as mRNA and cell and gene therapies, as well as expand globally. It also intends to continue providing biomanufacturing services. The company is in the process of building a new facility, referred to as Plant 4, which it says will "break its own record of holding the world's largest biomanufacturing capacity." The site is expected to begin partial operations in Songdo, South Korea, this October. Samsung Biologics is also planning to start construction this year on Plant 5, which will offer multi-modal product services.
JANUARY 28, 2022
