KPL
(KPL/Yonhap) Samsung Biologics Co., a biotech arm of South Korea's Samsung Group, said Thursday it plans to spin off its biosimilar development business to streamline its operations and focus on its core contract development and manufacturing organization (CDMO) services.
(KPL/Yonhap) Samsung Biologics Co., a biotech arm of South Korea's Samsung Group, said Thursday it plans to spin off its biosimilar development business to streamline its operations and focus on its core contract development and manufacturing organization (CDMO) services.
According to a regulatory filing, the company will establish a new entity, Samsung Epis Holdings, which will later incorporate Samsung Bioepis Co., a biosimilar drug developer, as a wholly owned subsidiary.
The spinoff process will proceed with the submission of a securities report on July 29, followed by a shareholders meeting on Sept. 16 for final approval.
Samsung Biologics explained that the split will allow the company to concentrate resources on its CDMO business, which operates under a different revenue model compared to biosimilars.
CDMO refers to a company that handles not only the outsourced manufacturing of drug substances but also all of the innovation and development work that occurs prior to production.
The company added that the separation will strengthen the operational independence of both Samsung Biologics and Samsung Epis Holdings, enhancing business competitiveness and maximizing corporate and shareholder value.
Samsung Biologics is one of the world's leading CDMO firms, reporting 4.54 trillion won (US$3.3 billion) in sales and 1 trillion won in net profit in 2024.
Shares of Samsung Biologics rose 7.11 percent to close at 1.1 million won (US$799.2) the previous day. The spinoff plan was announced before the market opened.
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