We usually associate Samsung with electronic products. However,
Samsung is working on making a name for itself in the
biopharmaceutical world as well. In May 2010, the company had
declared the biopharmaceutical sector as one of five new strategic
businesses that would lead the group's future growth. At that time,
Samsung committed to invest KRW 2.1 trillion (approximately $2
billion) in biopharmaceuticals by 2020.
In keeping with this goal,
Samsung Electronics Co., Ltd.
), and its affiliated companies entered into a strategic
partnership with pharmaceutical services company, Quintiles, in
early 2011 for the setting up of a joint venture.
The joint venture, Samsung Biologics, was established in April
2011 with Quintiles holding a 10% stake. The remaining 90% is owned
by Samsung (Samsung Electronics Co., Ltd., 40%; Samsung Everland,
Inc., 40% and Samsung C&T Corporation, 10%).
The establishment of the joint venture marked Samsung's entry
into the biopharmaceutical world. Samsung took another step
recently by entering into an agreement with biotech company
) for the setting up of a joint venture for the development,
manufacturing and marketing of biosimilars. Biosimilars are generic
versions of biologics.
The $300 million joint venture, which will be based in Korea,
will not be involved in the development of biosimilars of Biogen's
Majority Stake to be Held by Samsung
While Samsung will contribute $255 million to the joint venture
for an 85% stake, Biogen will invest $45 million for a 15% stake in
the joint venture. The agreement brings together Biogen's expertise
in biologics and Samsung's acumen and experience in new business
The setting up of the biosimilars joint venture should help
Samsung achieve its goal of commercializing biosimilars by
Samsung is constructing a biopharmaceutical manufacturing plant
in the Incheon Free Economic Zone in Songdo, Incheon, South Korea,
with full-scale operation expected to commence in April 2013.
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