Biogen pays $700mn to gain 49.9% share in Samsung Bioepis
Biopharmaceutical company Biogen has announced its decision to purchase additional shares of Samsung Bioepis Co., Ltd., a joint venture established in 2012 by Samsung BioLogics Co., Ltd and Biogen.
Under the terms of the 2012 joint venture agreement, Biogen will pay Samsung BioLogics approximately $700 million, increasing its ownership from approximately 5.4% to approximately 49.9%. The completion of this share purchase is subject to certain regulatory closing conditions and is expected to close in the second half of 2018.
Through the deal, the company will gain greater revenue in shares from Bioepis’ pharmaceutical products across Europe and the US.
“We are very pleased with the progress made to date at Samsung Bioepis and believe exercising this option is an opportunity to create meaningful value for shareholders,” said Michel Vounatsos, Chief Executive Officer at Biogen.
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“This option allows us to increase our ownership share in a leading biosimilar company at what we believe are attractive terms. We look forward to building an important relationship with Samsung BioLogics.”
Biogen discovers, develops, and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases. One of the world’s first global biotechnology companies, it has a leading portfolio to treat multiple sclerosis; has introduced the first and only approved treatment for spinal muscular atrophy; and is focused on advancing neuroscience research programs in Alzheimer’s disease and dementia.
This is on top of providing treatments for multiple sclerosis and neuroimmunology, movement disorders, neuromuscular disorders, pain, ophthalmology, neuropsychiatry, and acute neurology.
Biogen also manufactures and commercialises biosimilars of advanced biologics, with products such as TNF inhibitor Remicade becoming approved in the US, in partnership with Merck & Co.
In the first quarter of 2018, biosimilars contributed $128 million in revenue to Biogen, a 93% increase over the same period last year, FiercePharma reported.