Samsung BioLogics, a global biopharmaceutical CDMO based in South Korea, will transfer assets of Samsung Bioepis to Biogen. Under an asset transfer deal, Samsung BioLogics will transfer 9,226,068 shares of Samsung Bioepis to Biogen on November 7th, for approximately$677 million. 
 
With Biogen’s call option payment, Samsung BioLogics’ cash asset reserve will increase from 477.9 billion won as of end-June 2018 to approximately 1.24 trillion won. The firm’s debt ratio will also be reduced from 94.6 percent to 42.6 percent. 

Samsung Bioepis was founded in 2012 as an 85:15 joint venture between Samsung BioLogics and Biogen, with Biogen having the option to raise its stake in the JV to 50 percent minus one share, effective until June 2018. On June 29, 2018, Biogen exercised its call option to raise its stake in Bioepis to 49.9 percent, increasing its ownership.
 
Tae Han Kim, chief executive officer 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. 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”

Korea’s financial regulator continues to investigate allegations that Samsung BioLogics committed accounting fraud by deliberately changing its accounting practices in 2015.