Samsung Biologics said that the transaction would advance Samsung Bioepis’ capabilities in biosimilar development and future performance in novel drug development

Biogen

The Biogen headquarters. (Credit: Astrophobe/Wikipedia.)

Samsung Biologics has agreed to acquire Biogen’s entire 50% stake in their joint venture, Samsung Bioepis, for an aggregate consideration of $2.3bn.

Biogen initially owned a 15% stake in the joint venture, when it was established in 2012, and has exercised its right to buy up to 50% of Samsung Bioepis, in June 2018.

Under the terms of the current agreement, Samsung Biologics will make an upfront payment of $1bn in cash at the time of closing, and the remaining $1.25bn in two instalments.

Biogen would receive the first payment of $812.5m after one year, and the remaining $437.5m payment after two years from the closing of the transaction.

In addition, the biotechnology company is also eligible to receive additional payments of up to $50m, based on the achievement of certain commercial milestones.

The closing of the transaction is based on the effectiveness of Samsung Biologics’ securities registration statement and certain regulatory and customary closing conditions.

Biogen CEO Michel Vounatsos said: “We are thankful to Samsung Biologics for a productive collaboration since 2012. We believe biosimilars are essential to help sustain healthcare systems and represent an important value creation opportunity for Biogen.”

Samsung Biologics said that the transaction will be accretive to its earnings in 2022 and thereafter, fully capitalising on the high growth potential of Samsung Bioepis.

Its Board has agreed to raise KRW3 trillion (around $2.5bn) by issuing new shares, to fund its strategic growth plans, including the purchase of Samsung Bioepis shares.

Samsung Bioepis has a portfolio of five biosimilars, three in autoimmune and two in oncology space, along with one investigational product in Phase 3 development.

The portfolio includes Benepali (etanercept), a biosimilar to Enbrel, Imraldi (adalimumab), a biosimilar to Humira, and Flixabi (infliximab), a biosimilar to Remicade.

Biogen is expected to retain its rights for Byooviz (ranibizumab-nuna), a biosimilar to Lucentis (ranibizumab), along with investigational biosimilar SB15 (aflibercept), a biosimilar to Eylea.

Samsung Biologics said that the transaction would advance Samsung Bioepis’ capabilities in biosimilar development and future performance in novel drug development.

Also, it would boost Samsung Bioepis’ growth in sales and operating margin, and streamline its operational efficiencies, budget surplus, and cash flow generation.