Biogen exercises option to boost stake in Samsung Bioepis to 49.9 percent

Biogen on Thursday said that it had exercised its option to increase its stake in Samsung Bioepis from 5.4 percent to about 49.9 percent, in a payment to Samsung BioLogics of approximately $700 million. The transaction is expected to close in the second half of the year. 

Biogen and Samsung BioLogics initially announced an agreement to create a biosimilars-focused joint venture in 2011, with the company officially establishing Samsung Bioepis in early 2012. Biogen CEO Michel Vounatsos remarked "we are very pleased with the progress made to date at Samsung Bioepis and believe exercising this option is an opportunity to create meaningful value for our shareholders."  

FirstWord Reports: Providing insight, analysis and expert opinion on important Pharma trends and challenging issues <Click here> 

Biogen disclosed in April its intention to exercise its option to boost its stake in Samsung Bioepis to "50 percent minus one share." Samsung BioLogics later revealed that Biogen would exercise the option by late June. 

Meanwhile, a report previously suggested that parent company Samsung, which was said to own a 43-percent stake in Samsung Biologics, was considering raising as much as 3 trillion won ($2.8 billion) to boost its stake in Samsung Bioepis to 30 percent. The firm later denied the speculation. 

To read more Top Story articles, click here.