[News Space=Reporter seungwon lee] Samsung BioLogics is expected to resume trading on November 24, 2025, following a spin-off and a change in listing, and to create significant upward momentum in its stock price and corporate value.

IBK Investment & Securities analyzed that the combined value of Samsung BioLogics and the newly established Samsung Epi Holdings after the spin-off would reach KRW 108.7 trillion, a 25% surge compared to the pre-spinoff level. It also projected that Samsung BioLogics has an additional 71% upside potential. Conversely, while Samsung Epi Holdings faces concerns about an initial short-term stock price correction, it is assessed to have ample mid- to long-term growth potential driven by new drug development and the success of its technology platform.

Human Resources Division Structure and Market Response

Samsung Biologics' spin-off is a strategy to maximize the expertise and competitiveness of its existing CDMO (contract development and manufacturing organization) and biosimilar businesses by separating them. The surviving entity, Samsung Biologics, will focus on the CDMO business, while the newly established entity, Samsung Epis Holdings, will focus on biosimilar development and new drug research and development (R&D). The spin-off ratio, based on net asset value, is 65% to 35%, resulting in a market capitalization of KRW 56.5 trillion and KRW 30.4 trillion, respectively, splitting the two companies from KRW 86.9 trillion prior to the trading suspension.

Resolving conflicts of interest is considered a core value of the spin-off. This will overcome the limitations of Samsung Bioepis' existing biosimilar products, which previously overlapped with CDMO client offerings, hindering its ability to compete for orders. This will likely enhance the CDMO business's competitiveness and client trust. Furthermore, the revision of the US Biosecurity Act is expected to have a significant impact on Chinese CDMOs, further expanding domestic CDMO demand.

Samsung BioLogics' Growth Momentum and Performance

Samsung Biologics' average annual sales growth rate over the past three years has been 23.2%, significantly exceeding the global CDMO average of 11.8%. Its EBITDA margin is projected to reach 46.3% in 2024, surpassing Switzerland's Lonza (24.5%) and China's Wuxi Biologics (32.5%).

Production capacity is currently planned to expand from 784,000 liters to 1.324 million liters by 2032, and cumulative orders have already surpassed last year's performance, reaching KRW 5.5 trillion. The projected EBITDA for 2026 is KRW 2.8409 trillion, and the enterprise value, based on a multiple of 34x, is estimated to reach KRW 96.6 trillion.

Samsung Epix Holdings' Initial Adjustments and Mid- to Long-Term Growth Strategy

In contrast, Samsung Epi Holdings' initial listing value was assessed solely on its biosimilar business, resulting in a fair value of approximately KRW 12.1 trillion, approximately 60% lower than its post-split value (KRW 30.4 trillion). Some argue that a short-term downward correction in the stock price is inevitable.

However, Samsung Bioepis is accelerating the development of new drugs, including antibody-drug conjugate (ADC) candidates. Visible R&D results are expected within two to three years, thanks to platform technology development by its subsidiary EpiNexlab and open innovation with global pharmaceutical companies. The FDA's announcement of simplified guidelines for biosimilar clinical trials is also expected to contribute to shortened development times and costs.

Epi Holdings is expected to invest a significant portion of its initial cash of 100 billion won in R&D. With its own IPO unlikely for five years, it is essential to redesign its funding strategy, including mezzanine financing (convertible bonds and exchangeable bonds). Epi Holdings is exploring external investment and collaboration channels, including participation in the approximately 72 billion won Life Science Fund, jointly established with Samsung C&T and others, and contributions to the Flagship Pioneering Fund.

Future outlook and stock market valuation

A securities industry insider said, "Samsung BioLogics' spin-off will be a rare case in the domestic capital market where shareholder value has been substantially increased," adding, "The competitiveness of the CDMO business will be re-evaluated, and the upward momentum in stock prices will continue."

There's a growing consensus that Samsung Epi Holdings also stands a strong chance of a mid- to long-term revaluation once its new drug development and platform performance bear fruit. From an investor perspective, the post-spinoff strategy could be interpreted positively as it strengthens the expertise of individual businesses and establishes a clear valuation framework.

An official from the pharmaceutical and bio industry evaluated, "Samsung BioLogics' spin-off will be recorded as an important turning point that goes beyond a simple corporate spin-off and will enhance value by strengthening competitiveness in the global CDMO market and lay the foundation for mid- to long-term growth as a new drug development company."