Samsung Biologics is creating 'Samsung Bioepis Holdings' through a spin-off on the 22nd to separate its contract development and manufacturing organization (CDMO) and biosimilar (replicated biopharmaceuticals) businesses. CDMO refers to the process where a company enters into contracts with customers and develops and produces biopharmaceuticals on their behalf. Biosimilars are copies that are made similar to original biopharmaceuticals whose patents have expired.
Samsung Biologics will focus on the CDMO business going forward. According to the company, the CDMO market size is projected to grow from $21.8 billion (30.5 trillion won) last year to $43.9 billion (60.5 trillion won) by 2029.
Samsung Biologics currently has global pharmaceutical giants as clients, including Pfizer in the U.S. and AstraZeneca in the U.K. Its three key growth strategies include strengthening production capacity and diversifying its portfolio to increase international presence. Samsung Biologics also plans to expand its investments in adeno-associated virus and pre-filled syringe new businesses.
Samsung Bioepis Holdings has set a goal to become the world's number one biosimilar corporation. It expects to secure over 20 biosimilar products and expand beyond anticancer and anti-inflammatory treatments into hard-to-treat diseases. A company official noted, 'We plan to develop new modalities (drug delivery systems) and invest for future growth.'
Samsung Biologics and Samsung Bioepis Holdings will utilize the existing research facilities as they are. A Samsung Biologics official noted, 'Only Samsung Biologics had the factory (in Incheon Songdo).' A Samsung Bioepis official stated, 'Biosimilars are being produced on a contract basis globally, like the Fujifilm bio plant in Denmark,' adding, 'There are currently no plans to build our own plants, adhering to the policy of utilizing existing assets.'
Samsung Bioepis Holdings will be established by partitioning the business of managing subsidiaries and new investments from Samsung Biologics and incorporating Samsung Bioepis as a 100% wholly-owned subsidiary. Kim Kyung-a, CEO of Samsung Bioepis, will also serve as the CEO of Samsung Bioepis Holdings.
The company plans to submit a securities report on July 29. If it receives approval for partitioning at the shareholders' meeting on September 16, the launch of Samsung Bioepis Holdings will be finalized. A Samsung Biologics official stated, 'We will completely separate the CDMO and biosimilar businesses to enhance capabilities and alleviate the concerns of investors who need to simultaneously invest in two businesses that generate revenue in different ways.'