Samyang Holdings Decides to Absorb and Merge 100% Subsidiary Samyang Biopharm

[Asia Economy Reporter Seungjin Lee] Samyang Holdings will absorb and merge its pharmaceutical bio business specialized subsidiary, Samyang Biopharm.

Samyang Holdings announced on the 26th through a disclosure that the board of directors resolved to merge Samyang Biopharm. Samyang Holdings plans to complete the merger on April 1 after going through the related procedures.

Through this merger, Samyang Holdings aims to enhance its corporate value in the mid to long term by operating the pharmaceutical bio business. Samyang Biopharm will stably secure the funds necessary for future mid to long-term investments such as new drug development and global new businesses, and accelerate its global market penetration by increasing its global credibility.

Samyang Biopharm was established in November 2011 when Samyang Group established a holding company system and the pharmaceutical business division of Samyang Corporation was spun off. With sales of about 94.5 billion KRW in 2019, it holds the number one market share in the global biodegradable suture yarn market and is recognized domestically and internationally for its drug delivery system (DDS)-based anticancer drugs.

Last year, Samyang Biopharm entered the cosmetic surgery field based on biodegradable material-related technology. It is also expanding its global market entry by consecutively establishing overseas subsidiaries such as ‘Samyang Biopharm USA’ and ‘Samyang Biopharm Hungary’. Established in 2018, Samyang Biopharm USA is discovering new drug candidates locally in the United States and challenging innovative global new drug development. It is already conducting research on two new drug candidates and is continuously pursuing additional introductions.

Samyang Biopharm Hungary is a biodegradable suture production corporation. It is constructing a factory with an annual capacity of up to 100,000 km in the G?d?ll? industrial complex in Hungary, aiming to start operations in 2022. Domestically, to expand the global CDMO (Contract Development and Manufacturing Organization) business, it is expanding the anticancer injection factory at the Daejeon pharmaceutical plant to meet global advanced GMP (Good Manufacturing Practice) standards.

A Samyang Holdings official stated, “The pharmaceutical bio business is a future growth engine of Samyang Group, with long-term investments underway such as innovative new drug R&D, establishment of global production bases, and entry into new businesses,” adding, “We decided on the merger of the two companies to swiftly and smoothly execute the growth strategy of the pharmaceutical bio business and to enhance the corporate value of Samyang Holdings.”