Samsung Biologics Shelves Biosimilar Unit IPO Plans

Samsung Biologics, a Korean biotech firm, has ruled out an IPO for its biosimilar unit for now. The company primarily produces antibody drugs and operates through two segments: Contract Development and Manufacturing Organization (CDMO) and Biopharmaceutical Development and Commercialization.

Samsung Biologics, the biotech arm of South Korea's Samsung Group, has announced plans to spin off its biosimilar development business into a new entity, Samsung Epis Holdings. This strategic move is aimed at enhancing operational focus and addressing concerns about potential conflicts of interest with its CDMO clients.

According to a regulatory filing, the new entity will incorporate Samsung Bioepis Co., a biosimilar drug developer, as a wholly owned subsidiary. The spinoff process will begin with the submission of a securities report on July 29, followed by a shareholders meeting on September 16 for final approval. The separation is expected to take place in October [2].

Samsung Biologics has been facing concerns from its CDMO clients about potential conflicts of interest, particularly related to the use of proprietary technologies in original drugs and their sharing with Samsung Bioepis. The spinoff aims to address these concerns and enhance the company's competitiveness in the CDMO market [1, 3].

The CDMO segment of Samsung Biologics, which focuses on manufacturing drug substances and handling innovation and development work, will continue to operate independently. Samsung Biologics has seen steady growth and expansion in its CDMO business, reporting 4.54 trillion won ($3.3 billion) in sales and 1 trillion won in net profit for 2024 [1].

Samsung Bioepis, the biosimilar unit, will continue its operations and focus on developing and launching new biosimilar products. The company has been expanding its biosimilar business, and the spinoff is expected to enable it to source new growth engines through research and M&A activity [2].

The spinoff is not part of any broader corporate governance restructuring within Samsung Group and will not affect the day-to-day operations of Samsung Bioepis. Both entities aim to accelerate their growth and establish themselves as global leaders in their respective markets [3].

While the spinoff is expected to enhance operational focus and address client concerns, it may also have implications for investors. The separation will allow investors to place bets on Samsung's CDMO and biosimilar businesses independently, potentially leading to a clearer recognition and evaluation of each business's value [2].

Shares of Samsung Biologics fell 1.82 percent to close at 1.08 million won on the Seoul bourse, underperforming the broader Korea Composite Stock Price Index, which dropped 1.22 percent. The spinoff plan was announced before the market opened [1].

References:
[1] Azernews. (2025). Samsung Biologics to spin off biosimilar unit. Retrieved from [https://www.azernews.az/region/242168.html](https://www.azernews.az/region/242168.html)
[2] Fierce Pharma. (2025). CDMO Samsung Biologics to spin off biosimilars subsidiary. Retrieved from [https://www.fiercepharma.com/manufacturing/cdmo-samsung-biologics-telegraphs-spinoff-biosimilars-subsidiary-bioepis-citing](https://www.fiercepharma.com/manufacturing/cdmo-samsung-biologics-telegraphs-spinoff-biosimilars-subsidiary-bioepis-citing)
[3] Korea Herald. (2025). Spin-off aims to sharpen operational focus, build client trust, enhance shareholder value. Retrieved from [https://www.koreaherald.com/article/10493382](https://www.koreaherald.com/article/10493382)