Biogen Sells Biosimilar-Venture Stake To Samsung Biologics For $2.3B

Biogen Inc BIIB is selling its stake in a pharmaceutical joint venture with the South Korean conglomerate Samsung for $2.3 billion.

• Under the agreement, Samsung Biologics is acquiring Biogen’s ownership in Samsung Bioepis, which manufactures off-patent versions of biologic medicines called biosimilars. 
• Under the agreement terms, Biogen will receive $1 billion in cash upon closing, followed by $1.25 billion paid out over two years. 
• Biogen is also eligible to receive up to $50 million contingent on reaching certain commercial milestones.
• Biogen and Samsung Biologics created Samsung Bioepis in 2012 to develop, manufacture, and market biosimilar drugs, lower-priced copies of medicines made from living cells, including the rheumatoid-arthritis treatments Enbrel and Humira.
• In a statement, Biogen noted that it would retain commercial rights to both Byooviz (Lucentis biosimilar) and the investigational candidate SB15 (Eylea biosimilar) and existing agreements around marketed products.
• Biogen announced cost-reduction measures to reach $500 million in annualized savings in December. 
• Price Action: BIIB shares are up 2.16% at $223.67 during the premarket session on the last check Friday.