[Reporter's View] 'Samsung Epis' as independent firm

Samsung Biologics officially announced on May 22 that its shareholders determined to conduct a spinoff of Samsung Bioepis and establish 'Samsung Epis Holdings.' The business independence of Samsung Bioepis, which expanded its focus on biosimilars, was conducted earlier than anticipated.

 

It has been two years since Samsung Biologics acquired Biogen's entire share in Epis.

 

The current spinoff is meaningful in a way more than simply reorganization of the firm.

 

This indicates Samsung Bioepis' performance over 10 years, future market changes, and efforts to achieve the technological leap.

 

Samsung Bioepis was established as a joint venture between Samsung Biologics and the biotech firm Biogen in 2012.

 

In 2022, Samsung Biologics acquired 49.9% of the U.S.-based Biogen's share in Samsung Bioepis for approximately USD 2.3 billion, acquiring Epis as a 100% subsidiary.

 

After that, Samsung Bioepis established a partnership-based collaborative structure that is flexible and strategic rather than simply a shareholder relationship.

 

Its performance in the past two years can be seen as a period of testing the firm's 'independent survival.' Samsung Bioepis will become a completely independent entity after the spinoff.

 

At the same time, Samsung Epis Holdings will strengthen its role in Samsung Group's biotech business.

 

Samsung Bioepis' performance in the global market is notable.

 

According to IQVIA, Samsung Bioepis ranked No.2 in the market share of Humira biosimilars as of 2023.

 

However, the company's competitors are fiercely rising.

 

For instance, Celltrion has established a competitive ground as it obtains approval and distributes new products in addition to existing biosimilars.

 

Samsung Bioepis' new project is 'new drug discovery,' preparing beyond biosimilars.

 

Whereas the past performance focused on proving equivalence against original products and expanding market presence, the company will likely focus on securing a proprietary new drug pipeline for the next 10 years.

 

Samsung Bioepis has already started investing in R&D of proprietary new drug discovery.

 

It has begun searching for next-generation technologies, such as establishing an AI-based new drug discovery platform and antibody-drug conjugate (ADC).

 

However, the company's new drug pipeline for clinical trials has not been officially announced.

 

The company will likely seek an R&D model that could balance profitability and risk rather than delving into new drug discovery, requiring time and funds but carrying low success.

 

This approach has both pros and cons.

 

This means there is an opportunity to choose and focus on an area with a high probability of success rather than taking risks and being reckless.

 

Celltrion employs a similar strategy.

 

Samsung Epis Holdings' establishment can be seen as Samsung Group entering a new stage of 'comprehensive biotech strategy' beyond biosimilars.

 

This is likely to be followed by efforts to expand into fundraising, co-development with global big pharma, and the rare disease and vaccine sectors.

 

There's still a long way to go.

 

Their experience in new drug discovery remains in the early stages, and there are many challenges to overcome, such as securing high-value pipelines, navigating the regulatory environment, and securing talent.

 

The company's journey was like 'starting from scratch' and turning question marks from external and internal sources into exclamation points.

 

Conversely, it was also an expression of pride in leading the company to its current level with a relatively minor organization compared to large entities like Samsung Electronics and Samsung C&T.

 

The launch of Samsung Bioepis Holdings signifies confidence in past achievements and represents a bold first step toward new challenges and responses.

 

We anticipate Samsung Bioepis' continued strong presence in future competition, leveraging their 'original vision' and proven competitiveness in the biosimilar industry.