Bioepis Details Don't Support the Valuation

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Samsung Biologics   / Equity Capital Markets

<p>Samsung's proposed ~US$9 billion valuation for Samsung BioLogics would out the latter in a very select company: a US$9 billion market cap for a business that has modest revenue (US$80 million in 2015) and operating losses.  Of the 56 biotechnology and pharmaceutical companies globally with US$10B+ market caps, only one (Biomarin: BMRN US) is unprofitable (based on 2017 estimates).  In addition, Biogen's investment in subsidiary Samsung Bioepis looks like a far cry from US$5 billion, but we lack…</p>

Samsung's proposed ~US$9 billion valuation for Samsung BioLogics would out the latter in a very select company: a US$9 billion market cap for a business that has modest revenue (US$80 million in 2015) and operating losses.  Of the 56 biotechnology and pharmaceutical companies globally with US$10B+ market caps, only one (Biomarin: BMRN US) is unprofitable (based on 2017 estimates).  In addition, Biogen's investment in subsidiary Samsung Bioepis looks like a far cry from US$5 billion, but we lack…

Samsung Biologics

US$9 Billion Valuation Is Rarefied Air