Samsung Biologics to Spin Off CDMO and Biosimilars into Separate Entities

• Samsung Biologics will spin off its biosimilar business into a new entity, Samsung Epis Holdings, forming a pure-play CDMO.

• The spin-off will be completed by October 1, with a shareholder vote scheduled for September 16.

Samsung Biologics has announced a strategic spin-off to establish a new holding company, Samsung Epis Holdings, which will fully separate its contract development and manufacturing (CDMO) operations from its biosimilar business.

The company’s board approved the move on 22 May. Following the spin-off, Samsung Biologics will operate solely as a CDMO, while the newly formed Samsung Epis Holdings will become the parent of biosimilar developer Samsung Bioepis. The new entity will be created from Samsung Biologics’ division responsible for subsidiary management and investment activities.

The spin-off process will include the submission of a securities registration statement on 29 July and a shareholder meeting on 16 September. Samsung Epis Holdings is expected to launch officially on 1 October, with full acquisition of Samsung Bioepis as a wholly owned subsidiary. The stock market will reflect these changes on 29 October, when Samsung Biologics undergoes a listing modification and Samsung Epis Holdings is relisted as a separate company.

Under the spin-off plan, shareholders of Samsung Biologics will receive shares in both companies based on a ratio of 0.6503913 for Samsung Biologics and 0.3496087 for Samsung Epis Holdings. Trading of Samsung Biologics shares will be temporarily suspended from 29 September to 28 October to facilitate the transition.

An industry official cited in the announcement stated that the spin-off aims to “eliminate potential concerns among CDMO clients about competition and to ease the burden on investors who are forced to invest simultaneously in two businesses with fundamentally different revenue models.”