Samsung BioLogics closes an asset transfer deal with Biogen

Samsung BioLogics, a global leading biopharmaceutical Contract Development and Manufacturing Organization (CDMO) based in South Korea, announced today that the asset transfer deal related to the call option of Samsung Bioepis signed with US based Biogen will be closed on November 7th.

Samsung BioLogics will transfer 9,226,068 shares of Samsung Bioepis to Biogen on November 7th, and Biogen will pay Samsung BioLogics about 759.5 billion KRW, including the amount and interest of the acquired shares.

As a result, the asset to be sold and derivative liabilities reflected in the current financial statements of Samsung BioLogics will be deleted and in the fourth quarter of 2018, about 441.3 billion KRW gain associated with disposal of Samsung Bioepis will be reflected in non-operating profit.

In addition, the cash and cashable assets of Samsung BioLogics will increase from 477.9 billion KRW (as of the end of June 2018) to 1,237.4 billion KRW and the debt ratio will decrease from 94.6% to 42.6% due to the payment of call option of Biogen.

Samsung BioLogics and Biogen agreed on the call option that Biogen could purchase up to 50% -1 stake in Samsung Bioepis at the time of signing shareholders’ agreement for the establishment of a joint venture, Samsung Bioepis, in December 2011. Finally Biogen exercised the call option in June 29th 2018.

Tae Han Kim, CEO and president of Samsung BioLogics, said “Through the collaboration with Biogen Samsung were able to achieve such remarkable results in early stage on the biosimilar business” he added “We will strive to remain a successfully joint venture with the global biotechnology company through close consultation as we have entered into a full-fledged joint management system by ending this asset transfer deal”