Sector News

Biogen exercises call option to boost stake in Samsung Bioepis

July 5, 2018
Life sciences

Biogen said it had exercised its option to purchase additional shares of biopharma developer Samsung Bioepis Co Ltd, a joint venture established in 2012 by Samsung BioLogics Co Ltd and Biogen.

The move announced by the U.S. biotech company late on Thursday is expected to be taken into consideration by South Korean regulators who are investigating Samsung BioLogics’ bookkeeping in 2015, sources said.

Samsung BioLogics shares plunged in early May after the financial watchdog said it had breached accounting rules concerning its valuation of subsidiary Samsung Bioepis in 2015.

Samsung BioLogics’ valuation of Samsung Bioepis jumped 18 times to about $4.5 billion in 2015 after it switched to valuing the unlisted firm at fair market value instead of book value, a result of it being treated as an affiliate instead of a unit.

BioLogics has denied any wrongdoing and said the change was necessary to reflect different accounting standards in the event its partner exercised its call option.

The matter is now being examined by a body within the Financial Services Commission (FSC), South Korea’s top financial regulator.

Biogen’s call option exercise will be one of the matters considered when the FSC decides whether BioLogics’ accounting was sound, regulatory sources previously told Reuters.

Samsung BioLogics shares rose 4.8 percent in early Friday trade after the news.

Drug contract manufacturer Samsung BioLogics said in a separate regulatory filing on Friday that the additional shares Biogen would receive by exercising its call option were valued at about 2.26 trillion won ($2 billion), and Biogen would pay Samsung BioLogics 748.6 billion won to exercise its call option.

With the call option exercised, Biogen is expected to raise its stake in Samsung Bioepis from 5.4 percent at the end of 2017 to 50 percent minus one share.

By Joyce Lee

Source: Reuters

comments closed

Related News

December 3, 2022

Sanofi moves into swanky new Paris HQ designed around hybrid work and sustainability

Life sciences

Monday, the French pharma giant officially moved into its new global home base in Paris, dubbed La Maison Sanofi. The 9,000-square-meter (about 96,875-square-foot) facility comprises two historic buildings and will host around 500 employees, the company explained in a release.

December 3, 2022

As CEO Schultz eyes retirement, Teva taps former Sandoz head Francis as its next leader

Life sciences

On the first day of the new year, former Sandoz chief Richard Francis will take the reins from Schultz, who is hanging up his CEO hat to retire on Dec. 31, Teva said Monday. The news comes a little more than two weeks after Teva publicly said it was looking for Schultz’s replacement.

December 3, 2022

General Electric sets healthcare division spinoff plans

Life sciences

General Electric Co. set the terms for the spinoff of its healthcare division, putting an initial value of roughly $31 billion on the soon-to-be-public company. The Boston conglomerate plans to split into three separate public companies by early 2024. Following the healthcare spinoff, it plans to separate its aerospace business from its power and renewable-energy units.