Daily Management Review

Samsung to buy Biogen's stake in JV for $2.3B


Samsung Biologics will buy US manufacturer Biogen's stake in the Samsung Bioepis joint venture for $2.3bn. The company is expected to pay the money over two years, but will take ownership after the first $1bn tranche.

Samsung Biologics will buy US neurological disorder drug maker Biogen's stake (50% minus 1 share) in its joint venture focused on biosimilars, Samsung Bioepis, for $2.3 billion. 

The deal is expected to boost Samsung Biologics' profits and increase research and development, the company points out. 

Samsung Biologics' board of directors has approved the deal. The payment will be made in installments over two years. The company will take over ownership after the first $1 billion tranche. The board has also agreed to raise about $2.5 billion in capital through a new share issue, the proceeds of which will be used to fund the company's strategic development plans, including the purchase of Samsung Bioepis.

The joint venture between Samsung Biologics and Biogen was established in 2012. Biogen initially had a 15% stake and the right to acquire up to 50% minus 1 share, which the company exercised in 2018.

source: forbes.com