Samsung Pharmaceutical, CB Conversion and Financial Institution Loan Repayment... "Debt Ratio 10%"

[Asia Economy Reporter Hyunseok Yoo] Samsung Pharmaceutical announced on the 17th that it has secured a stable financial structure with a debt ratio of 10% through the conversion of convertible bonds (CB) and repayment of borrowings from financial institutions.

According to the quarterly report disclosed on the 14th, Samsung Pharmaceutical's debt ratio decreased from 47% at the end of the previous year to 10%. The company explained that this was because it fully repaid borrowings from financial institutions and converted 21.2 billion KRW out of 21.7 billion KRW of convertible bonds issued in 2020, thereby expanding its capital.

However, due to a sharp rise in stock prices in the first quarter of 2021, the company recorded a derivative valuation loss of approximately 12 billion KRW, resulting in a net loss for the period. This loss occurred due to the gap between the conversion price of the convertible bonds and the stock price. The company stated that this is only a fair value valuation loss with no actual cash outflow and is merely a one-time loss.

A Samsung Pharmaceutical official said, “Based on solid financial soundness, we will do our best to enhance shareholder value through strengthening competitiveness in new drug development and revitalizing existing operations.”

Meanwhile, Samsung Pharmaceutical completed the Phase 3 clinical trial for pancreatic cancer last year and received the final study report. The company plans to present related findings at the American Society of Clinical Oncology (ASCO) in June 2021.