The South Korean technology giant, Samsung will be making its first ever entry into the US stock markets with an anticipated $1 billion listing of its biotechnology affiliate. This will mark the company’s entry into a new industry apart from its renowned electronics business.
Samsung Bioepis Co. has been listed on the Nasdaq Stock Market and will allow the company to raise money as it pours billions of dollars into research and development to tap into the fast growing field of biosimilars. Biosimilars are basically a biotechnology drugs analogous to generic drugs.
Samsung Bioepis is currently developing generic versions of biotechnology drugs whose patents are expiring. The company has six products which are under development. Nearly five years ago Samsung had signaled health care and biosimilar drugs as a potential area of growth for the company.
So the company set up a huge production facility near South Korea’s main airport and the company is expected to hold the third largest capacity of any global biosimilar contract manufacturer by the end of this year if everything goes as the company has planned. Analysts are also speculating that Samsung Bioepis through this listing will be able to raise more than $1 billion.
Samsung Bioepis has been financing its capital intensive investment plans through Samsung Electronics and other affiliates and this money will now be discontinued.
