Samsung Biologics, a South Korean pharmaceutical company, announced plans to split its operations into two separate entities: one for contract manufacturing (CDMO) and the other for drug development. This restructuring aims to address concerns about potential conflicts of interest from clients. In a regulatory filing, the company revealed that it will keep its CDMO operations and spin off subsidiaries, including Samsung Bioepis, its biosimilar development unit, into a new holding company, Samsung Epis Holdings. Following news of the spin-off, Samsung Biologics' shares rose by 7.1%, reflecting investor optimism. Major stakeholders like Samsung Electronics and Samsung C&T are key investors in Samsung Biologics. The Samsung Group is keen to strengthen its bio sector investments and research, positioning Samsung Biologics, South Korea’s largest bio company and a global leader in CDMO, for continued growth. As part of the restructuring, Samsung Biologics will create Samsung Epis Holdings to separate CDMO operations from biosimilar and drug development. After the split, Samsung Biologics will focus solely on CDMO, while Samsung Bioepis—formerly a wholly owned subsidiary—will be transferred to the new holding company. This move is designed to alleviate concerns among global pharmaceutical clients, who had feared that Samsung Bioepis might gain access to proprietary technologies. "Clients saw both companies as one because of our parent-subsidiary relationship, leading to worries about conflicts of interest," said Samsung Biologics CFO Ryu Seung-ho during an online briefing. Ryu added that Samsung Biologics’ competitiveness in CDMO orders was impacted by its biosimilar business. "This spin-off will help alleviate concerns and ensure that both companies' corporate values are recognized, responding to rising global competition," he said. The spin-off is expected to be finalized after a shareholder meeting on September 16. Samsung Epis Holdings will officially be established on October 1, with relisting for both Samsung Biologics and the new entity on October 29. Under the spin-off, shareholders will receive shares in both companies at a ratio of 0.6503913 to 0.3496087, based on net asset values. To prevent shareholder dilution, Samsung Bioepis won’t seek a dual listing for at least five years. Samsung Epis Holdings aims for aggressive growth through investment in R&D and mergers and acquisitions (M&A). The company will support Bioepis’ biosimilar business and explore new opportunities via subsidiaries. Kim Kyung-ah, the current CEO of Samsung Bioepis, will lead Samsung Epis Holdings. This restructuring is part of Samsung’s broader shift towards new growth areas beyond semiconductors. Samsung Biologics recently became the first South Korean bio company to exceed 4 trillion won ($2.9 billion) in annual revenue and is on track to surpass 5 trillion won this year, after achieving more than half of last year’s order volume in just four months. Samsung Biologics remains one of the largest players in the global CDMO sector, with a production capacity of 784,000 liters (207,111 gallons). By separating Samsung Bioepis, the company aims to strengthen both its CDMO operations and drug development efforts. Samsung Epis Holdings plans to accelerate Bioepis’ growth, positioning it as the global leader in biosimilars through aggressive R&D and M&A. A key challenge for Samsung Epis Holdings will be securing the financial resources previously provided by Biologics’ CDMO revenues to fund Bioepis’ drug development initiatives. To support these investments, backing from major stakeholders like Samsung C&T (43.06% stake) and Samsung Electronics (31.22% stake) will be crucial. Although some analysts interpret the spin-off as a possible signal of governance reforms within the Samsung Group, Ryu denied this connection, emphasizing that the move was strictly business-driven. "We decided to spin off to respond quickly to global changes and secure unmatched competitiveness through selection and focus," said Samsung Biologics CEO John Rim. "This will allow both companies to accelerate growth and become top-tier global bio firms." This restructuring positions Samsung Biologics and Samsung Bioepis for future success, as the Samsung Group seeks leadership in the growing global biotechnology and pharmaceutical markets. (ICE SEOUL)

Fonte notizia: KOREA JOONGANG DAILY