Samsung Biologics will separate its contract development and manufacturing organization (CDMO) business and biosimilar business. Starting from November 1, the surviving entity ‘Samsung Biologics’ and the new entity ‘Samsung Epist Holdings’ are expected to be independently evaluated in the market.
On October 17, Samsung Biologics announced at an extraordinary general meeting held at Songdo Convensia, Incheon, that the proposal for the corporate split was approved. During the meeting, 93% of the voting shares (1286 shareholders) were present, and the proposal received overwhelming support with 99.9% in favor. For such a company split to pass, it requires the approval of at least two-thirds of the shareholders present and more than one-third of the total issued shares.
The passage of this proposal means that Samsung Biologics’ investment division will be split to establish the new entity, Samsung Epist Holdings. Samsung Biologics will continue its existing CDMO business as the surviving entity. Samsung Epist Holdings will be a pure holding company, taking over 100% ownership in Samsung Bioepis, which is involved in biosimilar development and commercialization, and will manage subsidiaries and new investments.
This corporate split employs an in-kind distribution method, wherein shareholders of the original company will receive shares in both the original and new entities at a ratio of 0.6503913 to 0.3496087, respectively.
The split date is set for November 1, with a trading suspension period from October 30 to November 21, before re-listing on the securities market on November 24.
Samsung Biologics and Samsung Epist Holdings aim to solidify their independent decision-making frameworks to enhance competitiveness and increase corporate and shareholder value through this split. Samsung Biologics, now focusing purely on being a CDMO, continues its growth strategy with aspirations of becoming a ‘global top-tier CDMO.’
A Samsung Biologics representative stated that, despite the strict separation of Samsung Bioepis’ business, concerns about conflicts of interest with the biosimilar business were raised by some clients. The split is expected to alleviate these concerns, thereby strengthening long-term partnerships and competitiveness in securing orders.
Samsung Epist Holdings plans to expand its global market share in biosimilars through Samsung Bioepis and push forward with future growth businesses like biotechnological platforms through newly established subsidiaries.
John Rim, CEO of Samsung Biologics, stated, “This division gives both the CDMO and biosimilar businesses the opportunity to be transparently evaluated for their intrinsic value in the capital market through their individual listings. Each company will work to strengthen its expertise and competitiveness, ultimately enhancing shareholder value.”