[BioUSA] Samsung Biologics CEO John Lim: "Business Separation Resolves Conflict of Interest Concerns"

Focusing More on Core CDMO Business...
"Enhancing Corporate Value"
Sales Guidance Expected to Remain at 20-25% This Year

Samsung Biologics expressed confidence that it will resolve concerns about conflicts of interest and enhance corporate value by separating its contract development and manufacturing organization (CDMO) and new drug businesses.

John Lim, CEO of Samsung Biologics, is explaining business issues at a press conference held in Boston, USA, on the 17th (local time). Photo by BioUSA Joint Press Team

John Lim, CEO of Samsung Biologics, held a press conference at the 2025 BIO International Convention (BioUSA) in Boston, USA, on the 17th (local time). He stated, "Through this spin-off, we have achieved a complete separation from Samsung Bioepis, allowing us to focus even more on our core business of CDMO." He added, "This will have the effect of enhancing both corporate value and shareholder value."

On May 22, Samsung Biologics announced that it would establish 'Samsung Epis Holdings' through a simple physical spin-off, thereby completely separating its CDMO and biosimilar businesses. The newly established pure holding company, Samsung Epis Holdings, will incorporate Samsung Bioepis, a biosimilar company, as a wholly owned subsidiary.

John Lim explained, "Although we have strictly operated a firewall, some customers have perceived Samsung Biologics and Samsung Bioepis as the same entity and have raised concerns about conflicts of interest." He emphasized, "Now that Samsung Biologics has established its identity as a pure CDMO, we will be able to further strengthen trust and long-term partnerships with our clients, and ultimately enhance our order competitiveness."

Before the spin-off, Samsung Biologics sometimes faced difficulties in securing orders due to its subsidiary, Samsung Bioepis. For the CDMO business, this resulted in challenges in winning contracts, while for the new drug development subsidiary, it served as a factor hindering meaningful growth. John Lim explained, "The fact that our client base was limited to 17 out of the global top 20 pharmaceutical companies was also due to the conflict of interest issues related to Samsung Bioepis."

However, with this spin-off, Samsung Biologics believes that investors will now be able to more clearly assess the growth potential, profitability, and strategic value of each business. The company also expects that this will highlight the potential value of businesses that were not properly evaluated within the consolidated corporate structure.

The company also expects to maintain a solid growth trajectory this year, with its sales guidance (the company's own performance outlook) remaining at 20-25%. As of June, Samsung Biologics has announced a total of five new orders this year, with the cumulative annual order value reaching 3.355 trillion won, which already exceeds 60% of last year's total order value of 5.4035 trillion won.

John Lim stated, "Orders continue to progress smoothly," and added, "Through the transition to a pure CDMO, we expect to accelerate the expansion of global partnerships and achieve sustained growth based on a high-profit business structure."