Shares of Biogen rose on Wednesday after a report that South Korean giant Samsung Group is in talks to acquire the US biotech company for more than $40 billion (about Rs. 2,98,170 crore).
Known for its Alzheimer’s drug Aduhelm and a neurology-focused drug pipeline, Biogen approached Samsung about a potential deal that could be valued at more than $42 billion (about Rs. 313292.28 crore), according to a report in the Korea Economic Daily.
The report, citing unnamed investment banking sources, noted Biogen’s relatively stable earnings compared to “cyclical industries such as semiconductors,” which have boosted profits at Samsung.
Shares of Biogen rose 9.5 percent in Wednesday’s session to $258.31 (about rupees 19,200) and climbed further in after-hours trading. A spokeswoman for Biogen declined to comment.
Founded in 1978 by a team that included Nobel laureates Walter Gilbert and Phillip Sharp, Biogen is known for its drugs to treat multiple sclerosis, alongside Aduhelm.
The company, based in Cambridge, Massachusetts, had revenue of $13.4 billion (approximately Rs. 99986.11 crore) last year and ended 2020 with approximately 9,100 employees.
Shares of Biogen have fallen nearly 50 percent since its peak in June, partly due to doubts about Aduhelm’s efficacy. On December 20, Biogen announced that it would cut the price of the drug by about half.
The world’s top chipmaker, Samsung is best known for its electronics division, which reported a 28 percent increase in operating profit to KRW 15.8 trillion (about Rs. 99367 crore) in the most recent quarter. Biogen and Samsung Biologics currently have a joint venture to develop, manufacture and commercialize biosimilars.
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