FSS completes special audit on Samsung BioLogics

 
(Ref: The Korea Times)
  • South Korea's Financial Supervisory Service (FSS) has completed a special audit on Samsung BioLogics over allegations of irregular accounting and FSS Chairman Kim Ki-sik said "the case will be submitted to the auditing committee soon," reported The Korea Times.

  • According to the news source, the allegation stems from Samsung Biologics changing the status of its subsidiary Samsung Bioepis in 2015 into an affiliate after Samsung Bioepis obtained approval for a new biosimilar in Europe.

  • Samsung Bioepis was established in 2012 as a joint venture of Samsung BioLogics and Biogen, with Samsung BioLogics now holding about 95 percent of Samsung Bioepis.

  • Samsung Bioepis' transition into affiliate status was based on a call-option contract with Biogen, which enabled the US drugmaker to increase its stake in Samsung Bioepis to 49.9 percent, the news source said.

  • Samsung said Samsung Bioepis should become an affiliate because Biogen was likely to exercise its call option given that Bioepis had performed well.

  • Following the transition into an affiliate, Samsung BioLogics' stake in Samsung Bioepis was re-evaluated as market value instead of acquisition value, hugely boosting the value of Samsung BioLogics, the news source added. The FSS is expected to make a final decision on Samsung by June.

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