Samsung Biologics Spins Off Biosimilar Unit to Boost Focus

Samsung Biologics has received overwhelming shareholder support for its spin-off plan, separating its biosimilar operations into a new entity, Samsung Epis Holdings. This strategic move will transform Samsung Biologics into a dedicated contract development and manufacturing organization (CDMO), allowing both companies to sharpen their focus on their respective markets.

The resolution for the spin-off was approved at an extraordinary shareholders’ meeting held on October 17, 2023. Approximately 93% of shareholders present voted in favor of the plan, with an impressive 99.9% of those votes supporting the resolution. Major shareholders include Samsung C&T, holding a 43.0% stake, and Samsung Electronics, which owns 31.2%.

Details of the Spin-Off

Under the approved plan, Samsung Epis Holdings will officially launch on November 1, 2023. The new company will take 100% ownership of Samsung Bioepis, the division responsible for the biosimilar business. Samsung Epis Holdings will manage its subsidiaries and oversee future investments, while Samsung Biologics will concentrate solely on its CDMO operations.

To facilitate this transition, trading of Samsung Biologics shares will be suspended from October 30 to November 21, 2023. Both Samsung Biologics and Samsung Epis Holdings are scheduled to relist on November 24, 2023. Shareholders will receive shares in the new entity based on a ratio of 0.65 for Samsung Biologics shares to 0.35 for Samsung Epis Holdings shares.

The rationale behind the spin-off is to eliminate potential conflicts of interest between the CDMO and biosimilar operations. John Rim, representative of Samsung Biologics, stated, “This spin-off will be an opportunity for each business—CDMO and biosimilar—to be properly evaluated for their unique value in the capital market.”

This strategic decision is expected to strengthen Samsung Biologics’ position in the global contract manufacturing landscape, allowing the company to enhance its expansion efforts and focus on delivering specialized services to its clients.

As the biopharmaceutical industry continues to evolve, Samsung Biologics aims to leverage this separation to better position itself and Samsung Epis Holdings for future growth and investment opportunities.