The state-run antitrust agency has notified Samsung BioLogics that it is no longer a holding company of Samsung Bioepis, the company said Friday in a regulatory filing.
Because Samsung BioLogics has only 43 percent of its total assets invested in Samsung Bioepis -- less than the required 50 percent -- it is no longer a holding company under FTC’s Monopoly Regulation and Fair Trade Act, the statement added.
Samsung BioLogics, mainly a contract manufacturing organization for pharmaceuticals, established biosimilars research and development firm Samsung Bioepis in 2012 as a joint venture with the US firm Biogen.
In November 2018, Samsung BioLogics handed over some 9 million Samsung Bioepis shares to Biogen when the latter exercised a call option.
Biogen’s call option was controversial and gave rise to allegations that Samsung BioLogics had breached acceptable accounting standards. Some say its true purpose was to facilitate the succession process for Samsung Electronics Vice Chairman Lee Jae-yong.
The biggest change likely to occur due to this development, according to BioLogics and Bioepis officials, is that Bioepis, which is not a listed company, will now be free from the obligation to report its in-licensing and out-licensing agreements and update shareholders on the progress of its clinical trials through BioLogics’ shareholders announcements.
By Lim Jeong-yeo (email@example.com)