Samsung BioLogics rebuffs IPO rumors
Samsung BioLogics, the biological drug manufacturing unit of Samsung Group, is rebuffing rumors over its recent initial public offering (IPO), which have swirled after a few negative media reports.
Some media outlets have contended that Samsung BioLogics has had an operating loss for the past three years so that it is not eligible for a benchmark KOSPI listing.
They insinuated that the Korea Stock Exchange (KRX), the operator of the Seoul bourse, and financial regulators have given special treatment to Samsung BioLogics by easing the associated listing rules early this year, which BioLogics says is not true.
“In fact, the KOSPI listing rules were revised on Nov. 4, 2015 to allow not-yet profitable companies to be publicly traded. Samsung BioLogics followed these rules and went public pursuant to proper legal procedures,” a BioLogics official said Sunday.
“Moreover, on Nov. 29 this year, the KRX also denied speculation that it eased its KOSPI listing rules for Samsung BioLogics’ market debut.”
The Incheon-based company said that it was qualified to be listed on the tech-heavy KOSDAQ even before the amendment of the KOSPI listing regulations and it had another option of going public on the NASDAQ in the United States.
“In fact, the company first considered listing on the NASDAQ because of various conditions — a higher understanding of the biotech industry, broader business expansion opportunities, and possible collaborations with global pharmaceutical companies,” the official said.
“Furthermore, being a company with a profit is not a requirement of being listed on the KOSDAQ or NASDAQ, particularly because of the large up-front investment required in the biotech industry.”
In other words, Samsung BioLogics had multiple alternatives than the KOSPI not only in Korea but also in the U.S. although it eventually opted for the KOSPI. In the face of “groundless media attacks,” the firm seems to feel burdened.
“The NASDAQ actually may have been the best option for Samsung BioLogics considering the substantial trade in stock between foreign and domestic investors,” the official said.
The outfit stressed that its IPO was carried out in a transparent and legal way.
“Our company has always been fully transparent and complied with global standards across all of our business activities including the IPO,” he said.
“Samsung BioLogics regrets the misleading news reports of some media outlets in question, which have caused damage to our compa- ny’s reputation and investor confidence. We have followed up with an official response to the media outlets.”
Investors appear not to care much about such reports because the firm’s share price has shot up so that it has become one of the largest companies on the Seoul bourse in terms of market capitalization less than a month after its listing.
It operates a factory with six 5,000-liter bioreactors in Songdo, west of Seoul, and the world’s largest plant with a 150,000-liter capacity started a test run this year. Plus, a new plant with a 180,000-liter capacity is currently under construction.
Its biosimilar arm Bioepis has introduced SB2, a generic version of Janssen’s rheumatoid arthritis treatment Remicade, in Europe to good responses. After getting approval in Europe this May, U.S. pharmaceutical giant Biogen has taken charge of marketing the medicine under the brand name Flixabi.