Recently, the South-Korean giant organization – Samsung – has made a bigger push in the biopharmaceuticals sector. The newly formed sub-organization of Samsung, the Samsung Bioepis Co Ltd, which strives develop generic versions of biotech drugs, is looking forward to organizing an initial public offering through NASDAQ.
Moreover, Samsung Bioepis is also in need of a financial loan of $1.3 billion, for developing more products to offer to the public.
According to the analysts, the growth of the pharmaceuticals business by Samsung might be a tactic by Samsung to attain the support of public for the merging of two of their affiliates. This would prove to establish the hold of the founder Lee family.
Moreover, Cheil Industries Inc, has proposed a merger of $8 billion to take over Samsung C&T construction firm. This has drawn the attention of many activists from the US hedge fund Elliott.
If this proposal is accepted by Samsung, then Cheil Industries will be having a major share in the Samsung’s Biologics Department. The Samsung’s Biologics department currently owns 90% of Samsung Bioepis Co.
Thus, by approving this proposal, Samsung will be handing over most of the control of their pharmaceutical department to Cheil Industries. As of yet, Samsung Electronics also owns 46% of the shares, and Cheil Industries also owns 46% of the shares, while the C&T Corporation owns 6% of the shares.
According to a company representative from Samsung Bioepis, Samsung is looking forward to raise funds for the developments of products in future. For this purpose, Samsung will be organizing an IPO with association with NASDAQ. The projected funds raised for product development are estimated at $1.5 trillion.
