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A New Turning Point for Samsung Group's Bio Business
On November 24, 2025, a significant change occurred in the Korean bio industry. Samsung Biologics carried out a spin-off, and the newly established 'Samsung Epise Holdings' was relisted on the securities market (KOSPI).
This division indicates that Samsung's bio business has been completely divided into two independent growth axes, 'production' and 'development', beyond mere organizational restructuring. Initial market reactions were somewhat confusing, but this can be seen as a temporary phenomenon arising from the re-evaluation of corporate value.
This change will enhance competitiveness in the bio industry and serve as an opportunity to further expand Samsung's future growth potential. It is a time to watch the upcoming situation closely.
This post will examine the background of the spin-off between Samsung Epise Holdings and Samsung Biologics and the market's response. Additionally, it will provide an in-depth analysis of the stock forecasts for both companies and future investment strategies.
Background of the Spin-off and Changes in Samsung Biologics
The main goal of this spin-off is to resolve the 'conflict of interest' issue between the contract development and manufacturing (CDMO) business and the new drug development sector. Samsung Biologics has grown into the world’s largest CDMO company, but its subsidiary Samsung Bioepis has been viewed as a competitor by global pharmaceutical companies operating in the biosimilar sector.
This has raised concerns about the potential leakage of technology from client companies, and establishing physical and legal 'firewalls' between the two companies was necessary to alleviate these concerns. This spin-off is being pursued against this strategic backdrop and will serve as a foundation for the simultaneous growth of both business sectors.
Ultimately, this spin-off can be viewed as an important measure to enhance the global competitiveness of Samsung Biologics and to restore client trust.
The spin-off ratio has been determined as 65% for Samsung Biologics and 35% for Samsung Epise Holdings. This solidifies Samsung Biologics' identity as a 'Pure-Play CDMO.' In fact, following the spin-off, they signed a large-scale contract worth 1.8 trillion won with a U.S. pharmaceutical company, alleviating market concerns. This movement will shed more light on the company's future growth potential.
This case demonstrates the maximization of global order competitiveness. The securities industry has adjusted the target stock price for Samsung Biologics upwards to 2.2 million won, indicating a positive outlook.
Stock Trends and Valuation Analysis of Samsung Epise Holdings
Samsung Epise Holdings' stock price has fluctuated significantly since its relisting. On the first day of listing, it plummeted from the opening price and continued to show additional decline the next day, triggering a volatility control device (VI).
The reason for the stock price drop is the concern of 'double counting' due to the transition to a holding company and an imbalance in supply and demand. In particular, existing passive funds holding Samsung Biologics shares mechanically sold holding company shares instead of manufacturing-related stocks, leading to significant supply and demand shocks.
Currently, the stock market tends to view the sharp drop in stock prices as an attractive buying opportunity. Generally, a discount rate of 30% to 50% is applied to holding companies, but companies with a market capitalization below 10 trillion won are analyzed to be undervalued compared to net asset value (NAV).
In particular, Samsung Epise Holdings is not just a simple holding company; it is recognized as an 'investment holding company' with excellent cash generation capability from its subsidiary Samsung Bioepis and growth potential from the newly established subsidiary Epise NexLab.
In fact, following the sharp decline in stock prices, a buying momentum has emerged, successfully leading to a rebound, indicating that the price discovery process based on fundamentals has begun. This trend can be interpreted as a positive signal for future market outlook.
Epise NexLab and Growth Drivers of Biosimilars
The future value of Samsung Epise Holdings depends on the balance between the stable revenue from Samsung Bioepis and the growth momentum from Epise NexLab. The synergy between the two companies is anticipated to have a significant impact on the sustainable development of the enterprise.
Samsung Bioepis is strengthening its portfolio by launching the biosimilar 'Fizicha' of Stelara and the biosimilar 'Ofubiz' of Eylea in the U.S. market. Notably, starting in 2026, they plan to launch direct sales of key products in the European market, significantly improving profitability.
Particularly noteworthy is the new activities of 'Epise NexLab.' This research lab is focusing on next-generation biotechnologies such as ADC (Antibody-Drug Conjugates) and is conducting innovative research.
Through equity investment and technological collaboration with the Chinese bio company Frontline, they are establishing an independent new drug development platform. This demonstrates Samsung's strong commitment to high-value new drug development beyond the fierce competition in the biosimilars market.
Therefore, Samsung Epise Holdings is evaluated as an attractive stock with the potential for significant growth due to successful new drug development, going beyond simple dividend returns. Such movements are expected to further solidify Samsung's position in the bio industry in the future.
Summary and Conclusions for Investors
The spin-off of Samsung's bio division in 2025 was an important decision aimed at enhancing the specialization of each business and strengthening global competitiveness.
Samsung Biologics is regarded as a 'shield' stock that can expect stable earnings growth thanks to excellent production capabilities.
In contrast, Samsung Epise Holdings is gaining attention as a 'spear' stock with current undervalued attractiveness and future new drug development potential.
In this way, both companies provide attractive options for investors through their respective strengths.
Samsung Epise Holdings may experience stock price fluctuations in the short term due to supply and demand issues and holding company discount concerns. However, considering the robust performance of the biosimilar business and the high growth potential of the ADC new drug platform, the current stock price adjustment could present an attractive buying opportunity for medium to long-term investors.
As misunderstandings and supply and demand instabilities in the market are resolved, corporate value is expected to gradually return to a normal trajectory, with these two companies establishing themselves as leading players in the global bio market in their respective fields.
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Frequently Asked Questions (FAQ)
Q. What is the background of the spin-off between Samsung Biologics and Samsung Epise Holdings?
The spin-off was conducted to resolve conflicts of interest by separating the CDMO business and the new drug development sector.
Samsung Biologics has grown into the world's largest CDMO company, but its subsidiary Samsung Bioepis has been recognized as a competitor by client companies due to its operation in the biosimilar sector. To eliminate concerns over technology leakage from clients and to resolve conflicts of interest between the two sectors, a spin-off was conducted to establish physical and legal firewalls. This measure is a strategic decision for the simultaneous growth of both business sectors and to enhance global competitiveness.
Q. What is the spin-off ratio for Samsung Epise Holdings and what does it signify?
The ratio of 65% Samsung Biologics and 35% Samsung Epise Holdings strengthens the CDMO identity.
According to the spin-off ratio, Samsung Biologics solidified its position as a 'Pure-Play CDMO.' Shortly after the spin-off, it signed a significant contract worth 1.8 trillion won with a U.S. pharmaceutical company, dispelling market concerns. This contract suggests the company's growth potential, and the securities industry has offered positive projections, including upward adjustments to target prices.
Q. What has been the stock performance of Samsung Epise Holdings since its relisting and what are the causes?
The stock plummeted after listing, and supply-demand imbalances and holding company discount concerns are the reasons.
On the first day of relisting, the stock price dropped sharply compared to the opening price, and the following day also saw declines, activating a volatility control mechanism. This was due to concerns over 'double counting' resulting from the transition to a holding company, as well as mechanical sales by existing passive funds holding Samsung Biologics shares. Consequently, temporary supply-demand imbalances and market shocks occurred.
Q. Why is Samsung Epise Holdings considered undervalued?
It is undervalued compared to its intrinsic value, and the rebound reflects fundamentals.
Generally, holding companies are subject to a discount rate of 30% to 50%, but Samsung Epise Holdings has been analyzed to be undervalued compared to its intrinsic value, given its market capitalization of less than 10 trillion won. This is because it is not just a simple holding company but an investment holding company possessing Samsung Bioepis, which has strong cash generation capabilities, and Epise NexLab, which has significant growth potential. Following the sharp stock price decrease, a buying momentum was observed, leading to a rebound, indicating an ongoing price discovery process.
Q. What is the role of Epise NexLab and its future growth potential?
Focusing on ADC new drug technology, it grows through new drug development and global collaboration.
Epise NexLab is leading research into next-generation bio technologies by concentrating on Antibody-Drug Conjugates (ADC). Through equity investments and technological collaboration with the Chinese bio company Frontline, they are building an independent new drug development platform. This is expected to strengthen Samsung's position in the bio industry by going beyond simple competition in the biosimilars market to achieve high-value new drug development.
Q. What are the recent market strategies and future plans of Samsung Bioepis?
It strengthens profitability by directly selling major biosimilars in the U.S. and European markets.
Samsung Bioepis has strengthened its product portfolio by launching the biosimilars 'Fizicha' of Stelara and 'Ofubiz' of Eylea in the U.S. Particularly, starting in 2026, they plan to implement direct sales in the European market to significantly increase profitability. This strategy is focused on securing stable revenue sources and expanding into global markets.
Q. What does the spin-off of the Samsung bio division mean for investors?
It offers stability and growth opportunities to investors through the strengths of both companies.
Samsung Biologics acts as a 'shield' stock with excellent production capabilities, expected to yield consistent earnings growth and strong global CDMO competitiveness. In contrast, Samsung Epise Holdings is seen as a 'spear' with undervalued attractiveness and the potential for new drug development. These two companies provide a variety of options for long-term investors based on their own expertise and are expected to establish themselves as key players in the bio market.
Q. What is the investment strategy and outlook for Samsung Epise Holdings?
While there may be short-term stock price volatility, the medium to long-term investment value is significant.
Following the relisting, stock prices may fluctuate due to supply and demand issues and concerns about holding company discounts, but considering the strong performance in the biosimilar segment and the promising growth of the Epise NexLab's ADC platform, this presents an attractive long-term investment opportunity. As misunderstandings and instabilities in the market are clarified, corporate value is expected to normalize, and Samsung Epise Holdings will likely continue to expand its influence in the bio market.