Press Releases
Samsung Biologics’ statement regarding recent media reports regarding the Samsung Biologics IPO
Samsung Biologics’ statement regarding recent media reports regarding the Samsung Biologics IPO.
□ The news statement that Samsung Biologics did not meet the listing requirements is not true.
A Korean news outlet reported that Samsung Biologics posted an operating loss for the past three consecutive years and was thus not able to satisfy the Korea Exchange (KRX) stock market KOSPI listing requirements. They also noted that coincidentally, the Korean financial authorities amended the related KOSPI listing rules in early 2016.
In fact, the KOSPI listing rules were revised on November 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.
Moreover, on November 29, KRX also denied speculation that it eased its KOSPI listing rules for Samsung Biologics’ market debut.
□ The company had listing opportunities not only on the KOSPI but also on the KOSDAQ and NASDAQ.
Samsung Biologics was qualified to be listed on the KOSDAQ even before the amendment of the KOSPI listing regulations. 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.
Furthermore, being a company with 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. There are several well-known examples on the KOSDAQ and NASDAQ. This allows unprofitable but promising companies with cutting edge technologies to go public, and supports their growth into global entities.
In the process of reviewing several possibilities, Samsung Biologics decided to go public on the KOSPI index, considering continuous suggestions from the KRX, amendment of the KOSPI listing rules, and domestic public opinion and expectations.
NASDAQ actually may have been the best option for Samsung Biologics considering the substantial trade in stock between foreign and domestic investors.
There was speculation that Samsung Biologics’ listing on the KOSPI was inevitable. This is simply not true.
□ Samsung Biologics 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.
Samsung Biologics regrets the misleading news report in question, which has caused damage to our company’s reputation and investor confidence. We have followed up with an official response to the news outlet in question.
Samsung Biologics, a contract manufacturing company, was established in 2011 and is currently manufacturing drugs for global pharmaceutical companies such as Roche and BMS under long-term agreements. The company went public on the Korea Exchange on November 10 of this year and recorded the second-largest IPO size in the global biotech sector. The IPO attracted in total $700Mn of foreign investment and enabled the construction of Plant 3 and biosimilar development of its subsidiary, Samsung Bioepis. Samsung Biologics will continue to strive to become a world-renowned company and enable the bio-industry to become the new growth driver of the nation.
Samsung Biologics’ statement regarding recent media reports regarding the Samsung Biologics IPO.
□ The news statement that Samsung Biologics did not meet the listing requirements is not true.
A Korean news outlet reported that Samsung Biologics posted an operating loss for the past three consecutive years and was thus not able to satisfy the Korea Exchange (KRX) stock market KOSPI listing requirements. They also noted that coincidentally, the Korean financial authorities amended the related KOSPI listing rules in early 2016.
In fact, the KOSPI listing rules were revised on November 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.
Moreover, on November 29, KRX also denied speculation that it eased its KOSPI listing rules for Samsung Biologics’ market debut.
□ The company had listing opportunities not only on the KOSPI but also on the KOSDAQ and NASDAQ.
Samsung Biologics was qualified to be listed on the KOSDAQ even before the amendment of the KOSPI listing regulations. 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.
Furthermore, being a company with 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. There are several well-known examples on the KOSDAQ and NASDAQ. This allows unprofitable but promising companies with cutting edge technologies to go public, and supports their growth into global entities.
In the process of reviewing several possibilities, Samsung Biologics decided to go public on the KOSPI index, considering continuous suggestions from the KRX, amendment of the KOSPI listing rules, and domestic public opinion and expectations.
NASDAQ actually may have been the best option for Samsung Biologics considering the substantial trade in stock between foreign and domestic investors.
There was speculation that Samsung Biologics’ listing on the KOSPI was inevitable. This is simply not true.
□ Samsung Biologics 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.
Samsung Biologics regrets the misleading news report in question, which has caused damage to our company’s reputation and investor confidence. We have followed up with an official response to the news outlet in question.
Samsung Biologics, a contract manufacturing company, was established in 2011 and is currently manufacturing drugs for global pharmaceutical companies such as Roche and BMS under long-term agreements. The company went public on the Korea Exchange on November 10 of this year and recorded the second-largest IPO size in the global biotech sector. The IPO attracted in total $700Mn of foreign investment and enabled the construction of Plant 3 and biosimilar development of its subsidiary, Samsung Bioepis. Samsung Biologics will continue to strive to become a world-renowned company and enable the bio-industry to become the new growth driver of the nation.