Samsung Biologics established Samsung Bioepis Holdings through a spin-off to separate its contract development and manufacturing (CDMO) business and biosimilar product business. The stock price is on the rise, likely due to the resolution of conflicts of interest in the biosimilar business and expectations for a revaluation of corporate value.
Samsung Biologics shares traded at 1,120,700 won as of 9:47 a.m. on the 22nd in the KOSPI market. It rose by 2.45% (27,000 won) compared to the previous day. The stock price surged to 1.2 million won shortly after trading was resumed around 9:40 a.m.
Samsung Bioepis Holdings, which will be newly established through the spin-off, will have Samsung Bioepis, a biosimilar company, as its wholly-owned subsidiary. Samsung Biologics will become a pure CDMO company.
There have been concerns about conflicts of interest due to the simultaneous presence of CDMO, biosimilar, and new drug development businesses. From the perspective of pharmaceutical developers who entrust production to Samsung Biologics, there is a possibility to view Samsung Biologics as a competitor since it is also involved in biosimilar development.
Samsung Biologics and Samsung Bioepis Holdings stated that they plan to establish an independent decision-making system through this partitioning and strengthen the competitiveness of each business to enhance corporate value and shareholder value.