June 26, 2022

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Samsung intends to be a biomedical giant by acquiring Biogen

Samsung intends to be a biomedical giant by acquiring Biogen



 

Samsung intends to be a biomedical giant by acquiring Biogen. 

Samsung intends to acquire Biogen for USD 42 billion, making it one of the global biomedical giants.

 

 

 

Introduction:

Samsung Group is negotiating to acquire Biogen, a US biopharmaceutical company, which is a pioneer in the treatment of neurological diseases such as multiple sclerosis and Parkinson’s disease.

The acquisition of more than 40 billion U.S. dollars is not only the largest transaction in the history of a South Korean conglomerate, but Samsung is expected to directly rank among the global biomedical technology giants.

 

According to an investment bank source on Wednesday, South Korea’s Samsung Group is in talks to acquire Biogen, a leading US-based pharmaceutical company that specializes in the treatment of Alzheimer’s disease (AD) and Nervous system diseases such as dementia.

 

The Nasdaq-listed biotechnology company approached Samsung to sell its shares, and the transaction price may exceed $42 billion, including a control premium.

Biogen’s current stock market value is slightly less than 35 billion U.S. dollars.

 

On December 29, a senior official of a global investment bank told the Korea Economic News: “Samsung is negotiating with the seller to acquire Biogen. ” The main subsidiary of Samsung Group (Samsung Group Biotechnology Company) may participate in the proposed large-scale The transaction will be the largest transaction since the group acquired Harman, a U.S. automotive electronic system manufacturer , for US$8 billion in 2016 . More details are not yet known.

 

If the largest Korean conglomerate acquires shares in the American company, it will become a global biotech giant and expand its pharmaceutical business beyond biosimilar drugs and contract manufacturing deals. Unlike cyclical industries such as semiconductors, Biogen is also expected to generate high operating profits on a stable basis.

 

Biogen was co-founded in 1978 by two Nobel Prize winners Walter Gilbert and Phillip Sharp. Gilbert won the Nobel Prize in Chemistry in 1980 for his work in DNA sequencing, and co-founder Phillip Sharp won the Nobel Prize in Medicine in 1993 for his discovery of split genes.

The company is a pioneer in the treatment of neurological diseases such as multiple sclerosis and Parkinson’s disease. It currently has 33 new drugs under development and is conducting phase 3 clinical trials on 7 antidepressant drug candidates.

 

Just last year , the biotechnology company received $13.4 billion in sales revenue, and its global sales of pharmaceutical products ranked 19th, roughly equivalent to the German pharmaceutical company Boehringer Ingelheim.

 

However, due to the controversy over the effectiveness of its new Alzheimer’s treatment and disappointing sales, its share price has recently fallen sharply, leading to the resignation of its head of research and development Alfred Sandrock last month, and the share price has fallen to two years.

The Alzheimer’s disease drug Aduhelm was jointly developed with Japan’s Eisai (Eisai) and was approved by the U.S. Food and Drug Administration (FDA) in June this year.

 

Although it became the first new treatment for Alzheimer’s disease approved by the FDA in 18 years, sales of the drug only reached 2% ($280,000) of its $14 million target for the third quarter of this year. Recently, Biogen reduced the price of the drug by nearly half.

 

In addition, the company’s highest-income treatment for multiple sclerosis (multiple sclerosis) drug Tecfidera, whose patent expired in mid-2020, is considered to be due to the company’s weak sales due to the release of its generic competitors. reason.

“Biogen very much hopes to have a breakthrough. ” An industry insider said, “The acquisition transaction with Samsung will be part of this effort. “

 

As early as 2011, Samsung established a partnership with Biogen to jointly own and manage its biosimilar business.

Biogen holds 49% of Samsung Bioepis, and Samsung Biocontrols the remaining shares. Its acquisition of Biogen will contribute to the diversification of Samsung Bio’s products and support Samsung Bio’s contract manufacturing business.

Biogen’s current major shareholders include Primcecap Management holding 11.07%, Vanguard Group holding 7.54%, BlackRock holding 5.49% and State Street Global Advisors holding 4.7%.

 

In September of this year, Samsung Group announced its ambitious spending plan, saying that it will invest a total of 240 trillion won (US$206 billion) in core businesses such as semiconductors, displays, and biopharmaceutical products in the next three years.

An industry insider said, “Samsung is cultivating the biological business as a new growth engine, and the acquisition of Biogen will create a leap forward.”

Sources said that if negotiations with Biogen fail, Samsung will try to buy back the remaining shares (49%) of the US company in its biosimilar joint venture Samsung Bioepis.

 

 

 

 

Samsung intends to be a biomedical giant by acquiring Biogen

(source:internet, reference only)


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