On the 30th, Samyang Holdings, the holding company of Samyang Group, announced its decision to partition the Biopharm Group within Samyang Holdings into a separate business entity by establishing Samyang Biopharm. Samyang Holdings acquired Samyang Biopharm through absorption merger in 2021, and is now initiating the business partitioning again after four years.
According to the company, this partitioning will proceed as a spin-off method, where the shareholders of Samyang Holdings will hold shares of both the existing corporation and the newly established corporation in proportion to their equity. The partitioning ratio has been determined based on the current book value of net worth.
If the process proceeds as planned, Samyang Biopharm will officially launch as an independent corporation on Nov. 1 and is scheduled to be listed on the Korea Securities Exchange (KOSPI) on the 24th of the same month. Trading of Samyang Holdings shares will be temporarily suspended from Oct. 30, the day before the record date for allocation of new shares, until the day before the change in listing and relisting.
Currently, Samyang Holdings is operated under a joint leadership structure with Um Tae-woong and Kim Kyung-jin as co-CEOs. After the partitioning, Um Tae-woong will serve as the CEO of Samyang Holdings, while Kim Kyung-jin will assume the role of CEO of Samyang Biopharm, overseeing the pharmaceutical biotechnology business.
Regarding the reason for re-partitioning the merged company, Kim Kyung-jin, the CEO of Samyang Holdings, noted, "In the past, due to COVID-19, the profitability of the pharmaceutical and biotechnology business deteriorated, and it was decided to absorb and merge into the holding company in order to receive stable funding necessary for investment in the biotechnology sector." He added, "As the profitability of the biotechnology business has improved and independent management has become possible, we decided to partition again."
Although the biopharm business has improved its profitability, it was stated that it did not receive proper valuation in the market due to being within the holding company. The company aims to clarify the identities of the holding company and the business company and provide investors with selective investment opportunities through this spin-off, and it seeks to re-evaluate the value of the pharmaceutical and biotechnology business. It was also believed that partitioning the business would be better for responding actively to the rapidly changing market environment.
Samyang Group successfully developed the world's first biodegradable surgical suture in 1993 and currently maintains the top share in the global suture market based on supply volume. It is also strengthening its pharmaceutical business centered on antitumor drugs, having established a portfolio of antitumor drugs for seven types of solid tumors and five types of blood cancers. Recently, it completed a new facility capable of producing 5 million vials annually for antitumor injection and obtained Good Manufacturing Practice (GMP) certifications in Japan and Europe.
Um Tae-woong, CEO of Samyang Holdings, stated, "With the establishment and partitioning of Samyang Biopharm, Samyang Holdings will focus on managing subsidiary companies as a pure holding company, while Samyang Biopharm can enhance management efficiency through independent and accountable management."