There are reports that South Korean giant Samsung Group is negotiating to acquire the American biotechnology company for more than US$40 billion (approximately 29817 billion rupees), and Biogen’s stock price soared on Wednesday.
According to the Korea Economic Daily, Biogen is well-known for its Alzheimer’s disease drug Aduhelm and neurology-focused drug pipelines. The company and Samsung have agreed on a project valued at more than 42 billion U.S. dollars (approximately equivalent). 313,292.28 crore) of potential transactions were contacted.
The report cited unnamed investment bank sources and pointed out that Biogen’s income is relatively stable compared to the “cyclical industries such as semiconductors” that promote Samsung’s profitability.
Biogen’s share price soared 9.5% to US$258.31 (approximately Rs 19,200) during the trading day on Wednesday, and it climbed further in after-hours trading. A Biogen spokesperson declined to comment.
Biogen was founded in 1978 by a team including Nobel Prize winners Walter Gilbert and Philip Sharp. In addition to Aduhelm, it is also known for its drugs for the treatment of multiple sclerosis.
The company is headquartered in Cambridge, Massachusetts, and had revenues of $13.4 billion (approximately 999.861 billion rupees) last year and has approximately 9,100 employees by the end of 2020.
Biogen’s stock price has fallen nearly 50% from its June peak, partly because of doubts about the efficacy of Aduhelm. On December 20, Biogen announced that it would cut the price of the drug by about half.
Samsung, the world’s largest chip maker, is known for its electronics division, which saw a 28% increase in operating profit in the most recent quarter to 15.8 trillion won (approximately 993.67 billion rupees). Biogen and Samsung Bio currently have a joint venture that is responsible for the development, manufacturing and sales of biosimilars.
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