Samsung Biologics has announced today it has now fully acquired Samsung Bioepis as a wholly owned subsidiary for $2.3 billion. As per the deal, the first payment of $1 billion has already been done which is pursuant to the terms of the acquisition agreement. Rest, the remaining USD $1.3 billion will be made in installments over two years.
As per the release, the purchase was funded by a portion of a paid-in capital increase of approximately $2.5 billion, which was raised by issuing new shares.
The acquisition gives Samsung Bioepis improved autonomy and agility in business operations, accelerating sales growth, operating margin improvements, as well as biosimilar development capabilities and future performance in novel drug development. The proceeds will be used to fund the company's strategic growth plans.
In addition, Samsung Biologics 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 for future growth. Bio Campus seems to be planned in South Korea.
John Rim, CEO and President of Samsung Biologics said, "Today's announcement marks a significant milestone for Samsung Biologics in our continued venture into the biosimilar business and accelerating biosimilar growth. By leveraging our extensive experience as a leading CDMO, we will further contribute to saving lives of the patients and address a wide array of diseases."