Samyang Holdings Completes Merger with Samyang Biopharm

[Asia Economy Reporter Lee Seung-jin] Samyang Holdings announced on the 2nd that it has completed the absorption merger of its pharmaceutical and bio-specialized subsidiary, Samyang Biopharm.

Samyang Holdings held a board meeting in January and resolved the agenda to absorb and merge Samyang Biopharm. The merger between the two companies was conducted in a non-capital increase method without issuing new shares, in which the surviving company, Samyang Holdings, absorbed its 100% subsidiary, Samyang Biopharm.

Prior to this merger, Samyang Holdings added pharmaceutical and bio-related business purposes to its articles of incorporation at the general shareholders' meeting, completing all related preparations. After the merger, Samyang Holdings will operate with two major organizations: the ‘Staff Group,’ responsible for personnel, finance, and strategy, and the ‘Biopharm Group,’ executing pharmaceutical and bio business. Representatives Yoon Jae-yeop and Eom Tae-woong will lead each organization as co-CEOs.

Through this merger, Samyang Holdings aims to strengthen competitiveness in the pharmaceutical and bio business and enhance management efficiency to increase corporate value. Long-term investments requiring significant resources, such as global new drug development, establishment of overseas production corporations, expansion of CDMO (Contract Development and Manufacturing Organization) business, and entry into the cosmetic surgery market, which were previously pursued by Samyang Biopharm, can now secure stable funding and investment through the merger with Samyang Holdings. In particular, in the highly competitive global new drug development business, including immuno-oncology and metabolic cancer drugs, the company is expected to accelerate its global market penetration by securing sufficient human resources and financial stability.

A Samyang Holdings official stated, “The pharmaceutical and bio business has a stable business foundation with biodegradable sutures and anticancer drugs, as well as differentiated technology related to drug delivery systems.” He added, “We will actively implement growth strategies for the pharmaceutical and bio business, which is the group’s future growth engine, to enhance Samyang Holdings’ corporate value and shareholder interests.”

Samyang Biopharm was established in November 2011 following the establishment of the Samyang Group’s holding company system and the spin-off of Samyang Corporation’s pharmaceutical business division. Samyang Biopharm holds the number one market share in the global biodegradable suture filament market. In the anticancer drug sector, Samyang Biopharm’s independent brand ‘Genexol’ maintains the number one domestic market share of around 50% among paclitaxel formulations and is recognized in domestic and international markets with drug delivery system (DDS)-based anticancer drugs.