Samsung Biologics officially completed the spinoff of its drug development arm, Samsung Bioepis, on Monday. This move created two separate public companies: Samsung Biologics and the new Samsung Epis Holdings. The market had a mixed reaction to the debut. While the main company’s stock stayed mostly flat, the new holding company had a rough start, dropping over 28% on its first day of trading.
This split solves a major trust issue for the company. Samsung Biologics serves as a manufacturing facility for industry heavyweights such as Pfizer, Roche, and Merck. These clients often worried that their trade secrets might leak to Samsung’s own drug development team at Bioepis. By cutting the cord and separating Bioepis, Samsung Biologics becomes a pure manufacturer. This separation assures clients that their intellectual property remains safe.
Analysts view the move as a major win for the manufacturing side of the business. Experts at Mirae Asset Securities raised their valuation of Samsung Biologics, estimating the company is now worth around 106 trillion won ($71.36 billion). They believe the streamlined structure will attract more contracts. A recent 1.8 trillion won deal with a U.S. firm suggests that American clients are ready to spend again, especially as fears regarding U.S. tariffs and drug pricing policies begin to fade.
Business remains strong on the factory floor. Samsung Biologics reported record sales for the third quarter, with Plants 1 through 4 running at full capacity. The company is also securing early orders for its upcoming Plant 5.
However, the steep drop in Samsung Epis Holdings shows that investors need convincing. The market wants to see concrete results from their biosimilars and new cancer treatments before betting on the new standalone company. Despite the drop for the spinoff, the combined value of the two companies actually rose, suggesting that Wall Street sees the long-term logic behind breaking the business apart.
