Samsung In Talks To Acquire Biotech Firm Biogen In A US$42 Billion Deal

The Samsung Group is reportedly in negotiations to acquire biotech firm Biogen (Nasdaq: BIIB). The US firm approached the South Korean conglomerate for a proposed acquisition that is expected to be valued at more than 50 trillion won (US$42 billion).

In a report by The Korean Economic Daily, investment banking sources disclosed on Wednesday the negotiations for the possible acquisition–which would mark Samsung’s biggest acquisition since the US$8 billion deal to acquire US audio electronics Harman in 2016.

Following the report, the drugmaker’s shares skyrocketed on the Nasdaq, jumping from its opening price at US$235.00 to its peak at US$265.54. Biogen is currently valued at roughly US$35 billion and reported in its 2020 annual financials a US$24.62 billion in total assets and US$13.44 billion in revenue.

The Massachusetts-based firm is focused on developing drugs in the neuroscience arena, aiming to address diseases like Alzheimer’s, multiple sclerosis, and Parkinson’s. Among its 33 new drug candidates in the pipeline is the US FDA-approved Alzheimer’s drug aducanumab.

The two companies previously signed a joint venture to create Samsung Bioepis, aimed at taking a slice of the biosimilars market. Sources said that should acquisition talks fail, Samsung may buy Biogen out of the joint venture.

“Samsung is nurturing bio business as a new growth engine. Acquiring Biogen will create an opportunity to take a quantum leap,” an industry source said to The Korean Economic Daily.

In August 2021, the South Korean conglomerate announced its plans to invest a total of 240 trillion won (US$206 billion) over the next three years in its core divisions such as semiconductor, displays, and biopharmaceutical products.

Biogen last traded at US$258.31 on the Nasdaq, up 9.46% on the day.

Information for this briefing was found via the Korean Economic Daily and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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