In January this year, Samsung Biologics signed an agreement for the stake acquisition.
As per the terms of the deal, Samsung Biologics made the initial payment of $1bn in cash and completely acquired Samsung Bioepis as its fully owned subsidiary.
Samsung Biologics plans to make the remaining $1.3bn payment in instalments over a period of two years.
The acquisition was funded by the company through a portion of $2.5bn (KRW3tn) paid-in capital increase obtained by issuing new shares.
Furthermore, the proceeds will be utilised to support the strategic growth plans of Samsung Biologics.
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The purchase of the JV will offer Samsung Bioepis enhanced autonomy and agility in business operations, expediting growth in sales and greater operating margins.
It will also provide the company with biosimilar development expertise and future performance in the development of new drugs.
Till date, Samsung Bioepis introduced five biosimilars across the globe with three in autoimmune and two in oncology sectors.
In addition, a product is about to be made available in the market with four biosimilars currently in Phase III clinical trials.
Samsung Biologics CEO and president John Rim said: “The announcement marks a significant milestone for Samsung Biologics in our continued venture into the biosimilar business and accelerating biosimilar growth.
“By leveraging our extensive experience as a leading CDMO, we will further contribute to saving lives of the patients and address a wide array of diseases.”
At present, the company is setting up Plant 4, which is anticipated to become partially operational in October this year.
It is also working on obtaining additional 350,000m² land for Bio Campus II, which is planned to be 30% bigger than the existing site.