New York: According to reports, the South Korean giant Samsung Group is negotiating to acquire the American biotechnology company for more than US$40 billion, and Biogen’s stock price soared on Wednesday.
Biogen, which is known for its Alzheimer’s drug Aduhelm and a neurology-focused medication pipeline, approached Samsung on a potential deal that could be valued at more than $42 billion, according to a report in the Korea Economic Daily.
The report, which cited unnamed investment banking sources, noted Biogen’s relatively stable revenue in comparison with “cyclical industries like semiconductors,” which have driven profit at Samsung.
Shares of Biogen soared 9.5 percent in Wednesday’s session to $258.31 and climbed further in after-hours trading.
A Biogen spokeswoman declined comment.
Biogen was founded in 1978 by a team including Nobel Prize winners Walter Gilbert and Philip Sharp. In addition to Aduhelm, it is also known for its drugs for the treatment of multiple sclerosis.
The company is headquartered in Cambridge, Massachusetts, had revenues of $13.4 billion last year and had approximately 9,100 employees by the end of 2020.
Shares of Biogen have fallen nearly 50 percent from its June peak due in part to doubts about the efficacy of Aduhelm. On December 20, Biogen announced that it was slashing the price of the drug roughly in half.
The world’s top chipmaker, Samsung is best known for its electronics division, which reported a 28 percent jump in operating profit in the most recent quarter to 15.8 trillion won ($13.5 billion).
Biogen and Samsung Biologics currently have a joint venture to develop, manufacture and market biosimilars.
