---
endpoint: analytics
pattern: Healthcare
status: done
latency_ms: 256581
conversation_id: 785cada7-3696-4eaa-b7b5-90fed182730d
citations: 10
created: 2026-05-31 18:39:47Z
---

# Provide a one‑year narrative of Samsung Biologics, outlining how business performance, market conditions, and company actions shaped investor sentiment and valuation.

# Samsung Biologics (KS: 207940) — One-Year Narrative (May 2025 → May 2026)

The past twelve months have been the most consequential in Samsung Biologics' history. The period bookended a slow start with a single decisive corporate action — a horizontal equity spin-off of the CDMO and biosimilar businesses — that, together with a rapid Plant 4 ramp, a U.S. manufacturing acquisition, and three trillion-won-plus contract wins, transformed the stock from a complex Korean healthcare conglomerate-discount story into a pure-play global CDMO. The arc moved from "largely neutral" reaction at announcement to a measured +42% group market-cap uplift by the time both entities resumed trading post-split.

---

## I. May 2025 — The setup: Korea's premier CDMO, but with structural conflicts

Heading into late May 2025, Samsung Biologics traded around ₩1,080,000 — already up roughly 39% over the prior twelve months on Plant 4 commissioning and order-book optics [1]. CLSA had a High-Conviction Outperform with a ₩1,500,000 target (+39% upside on 22 May pricing; market cap US$55.6bn; free float just 19%) [4]. Samsung C&T (43.1%) and Samsung Electronics (31.2%) controlled the register, leaving the stock chronically thin and chaebol-overhang-discounted [4].

Underneath that headline strength, two structural drags weighed on the sentiment:
- **Conflict of interest** between SBL's CDMO business (which competes for global pharma manufacturing mandates) and Samsung Bioepis (SBE), the biosimilar arm — which itself sells branded biosimilars that compete with the originator drugs SBL's CDMO clients sell [7].
- **Capacity ramp execution risk** — Plant 4 was still ramping (Plants 1–3 near full utilization), Plant 5 had just commenced operations in April 2025 [12].

The full-year 2024 backdrop on which the stock entered the year: revenue ₩4,547bn, EBIT ₩1,320bn, ROE 10.4% — strong, but the market had begun fretting that the 2025 growth glide-path could be compressed by Celltrion-style biosimilar pricing pressure and tariff overhangs [3].

---

## II. 22 May 2025 — The catalyst: horizontal spin-off announced

Before market on 21 May 2025, SBL announced a **horizontal split** between CDMO and biosimilar businesses, creating a new entity (**Samsung Epis Holdings**, "SEH", tentative) to house Samsung Bioepis and future bio-investment subsidiaries; the surviving SBL would become a **pure-play CDMO** [2].

**Mechanics of the split**:

| Item | Surviving (SBL) | New (Samsung Epis Holdings) |
|---|---|---|
| Business | CDMO | Holding co. for Bioepis / new bio investments |
| Key subsidiary | Samsung Biologics America | Samsung Bioepis |
| Split ratio | 0.6504 | 0.3496 |
| Capital | ₩115.7bn | ₩62.2bn |
| Common shares | 46.29m | 24.88m |

Source: [5]

**Initial market reaction was muted to mildly negative.** CLSA's read on day one was that the action was "largely neutral for the stock price for now" [1]. The 0.65:0.35 split ratio — based on NAV — was viewed as **slightly unfavourable** to SBL/CDMO shareholders in the short term, since CDMO's earnings capability arguably deserved a higher allocation; this was sharpened by Celltrion-style headwinds (tariffs, pricing pressure) hitting biosimilars at the same moment [3].

---

## III. 27 May 2025 — The reframe: "Making the right decision"

Five trading sessions later, after digesting management's spin-off briefing, the sell-side narrative pivoted decisively positive. The case rested on three pillars:

1. **Choice for minorities.** Minority holders, who historically had favored the CDMO leg, could now isolate that exposure — and biosimilar believers could own SEH cleanly [6][7].
2. **Removal of conflicts unlocks the client TAM.** With biosimilar competing-IP risk gone, SBL could finally pitch **Amgen and Regeneron** — the highest-value originator-pharma names that had previously held back from awarding manufacturing to a competitor's parent company [7].
3. **Historical analogues.** Seven prior horizontal splits in Korea since 2021 (Hanwha Aerospace, Isu Chemical, STX, SK D&D, etc.) showed the surviving entity tends to outperform between announcement and re-listing, with aggregate post-split market cap moving on combined fundamentals [8].

Stock performance reset higher: as of 26 May 2025 the absolute 12-month return was +38.9%, and CLSA's upside to the unchanged ₩1,500,000 target widened to **+44%** on market cap US$54.3bn [9]. The HC O-PF rating was reiterated, with the caveat that the company needed to deliver more disclosure on biosimilars, new modalities, and a novel-drug strategy ahead of relisting [10].

CLSA's revised forecast set was lifted: 2025CL net profit raised to ₩1,418bn (from ₩1,384bn), EPS ₩19,928, EBIT margin 33.3%, ROE 12.2% [9-paired]. Critically, the firm called for a **2Q25 OP beat ~10% above consensus** on the back of robust Plant 4 ramp and ₩440bn in fresh orders flagged the prior Monday [8].

---

## IV. Mid-2025 (Q2 print, July 2025) — Operational delivery validates the thesis

The Q2 2025 print landed on 23 July 2025:
- **Consolidated revenue ₩1,290bn, OP ₩476bn (OPM 36.9%)**; YoY **+11% revenue / +9% OP**, with the Biologics segment OPM at a striking **47.0%** [11].
- **1H CDMO revenue surpassed KRW 2T for the first time**, and **1H order intake reached KRW 3.4T — the strongest 1H on record** (already ~60% of full-year 2024 order total) [12].
- **Full-year guidance raised** from +20–25% to **+25–30% YoY** — a direct validation of the Plant 4 ramp thesis CLSA had built the May call around [11].
- Spin-off mechanics moved forward (May 22 board resolution → July 29 record date for EGM, with subsequent steps scheduled through October).

This was the inflection. The operational beat, combined with management leaning in on the spin-off timeline, shifted the debate from "is the split dilutive?" to "how big is the post-pure-play re-rating?"

---

## V. Q3 2025 (October 2025) — Acceleration and a blockbuster contract

The Q3 print (28 October 2025) was the strongest quarter of the year:
- **Revenue +40% YoY; OP +115% YoY**; Consolidated rev ₩1,660bn, OP ₩729bn (OPM **43.9%**); Biologics segment OPM hit **50.4%**, Bioepis 29.3% [13].
- **Signed a USD 1.3B CMO contract with a U.S. pharma** in the quarter; cumulative CMO orders crossed USD 20B since inception (cumulative CMO 105, CDO 154) [14].
- **Spin-off proceeded as scheduled** following regulatory approvals and EGM resolution; relisting was scheduled for November [15].
- Contracts signed with **4 of Japan's top-10 pharma**, with one more in final negotiation — geographic mix-broadening that previously was a structural gap.

The Q3 report's "Samsung Epis Holdings Growth Strategy" deck — laying out three pillars (strengthening biosimilar leadership, becoming a next-gen bio growth hub, focused platform tech) — gave the SEH side a credible standalone narrative for the first time, which mattered for the relisting valuation.

---

## VI. November 2025 — Spin-off completion and value uplift

Trading suspended 30 Oct → 21 Nov 2025; the two entities (SBL and SEH) **resumed trading on 24 November 2025** [17]. The disclosed market-cap arithmetic is the cleanest single-number summary of how investors voted on the whole twelve-month action:

| Period | Date | Samsung Biologics | Samsung Epis Holdings | Total |
|---|---|---|---|---|
| Before announcement | 22 May 2025 | ₩74T | — | ₩74T |
| Before split completion | 1 Nov 2025 | ₩79T | — | ₩79T |
| After split | 24 Nov 2025 | ₩78T | ₩14T | ₩92T |
| Current (per Q4 deck) | 20 Jan 2026 | ₩89T | ₩16T | **₩105T** |

That is a **+42% combined value uplift** from announcement to January 2026 — vindicating the May CLSA thesis that, despite a slightly unfavourable split ratio, the long-term unlock from eliminating the conflict of interest was the dominant variable [17].

---

## VII. Q4 2025 / Full-year (January 2026) — Pure-play CDMO + U.S. footprint

The Q4 2025 release on 21 January 2026 confirmed:
- **2025 full-year revenue ₩4,557bn, OP ₩2,069bn (OPM 45.4%)** — **+30% YoY** revenue growth, on full utilization of Plants 1–3, Plant 4 ramp, and favourable FX [16].
- **4Q standalone Biologics-only**: Revenue ₩1,286bn, OP ₩528bn (OPM 41.1%), +35% YoY revenue [16].
- **Three KRW 1T+ contracts secured in 2025**, including a **KRW 1.1T contract with a European pharma**; cumulative orders **USD 21.2B / 107 CMO + 164 CDO projects** [18].
- **GSK U.S. manufacturing facility acquisition announced**, targeted to close by 1Q 2026 — the first overseas plant footprint, materially de-risking the "single-country supply" criticism that had dogged the stock [18].
- **2026 guidance**: pure-play CDMO revenue to grow **+15–20% YoY**, before any contribution from the U.S. facility [17].
- **ESG bolt-on**: CDP A-List inclusion, Sustainalytics Industry Top Rated, MSCI ESG upgrade to "BBB" — addressing the second-tier governance overhang [18].

---

## VIII. Q1 2026 (April 2026) — U.S. close, Lilly partnership, full-throttle ramp

The Q1 2026 release closed out the one-year window:
- **Revenue +26% YoY** (₩1,257bn vs ₩1,000bn in Q1 2025), OP ₩581bn (OPM 46.2%, +35% YoY), EBITDA margin 53.7% — accelerating margin profile post-split [19].
- **Completed acquisition of the U.S. manufacturing facility** (Rockville, Maryland; $353M total = $280M plant + $73M inventory; 60 kL capacity; 500+ retained employees) [20].
- **Collaboration with Eli Lilly** to establish **Lilly Gateway Labs** at the Open Innovation Center.
- **Partnered with CEPI's vaccine manufacturing network** for pandemic-response reserve capacity.
- **Cumulative CMO contract volume reached $21.4B**; 112 CMO projects / 169 CDO projects [19].
- **EcoVadis Platinum rating** (top 1% sustainability) achieved in January 2026.

---

## IX. Synthesis — What drove sentiment and valuation

**Three forces compounded:**

1. **Plant 4 ramp** delivered consistent revenue beats — Q2 +11%, Q3 +40%, Q4 +35% — supporting the upward guidance revision in mid-year. This was the **operational floor**.

2. **The 22 May 2025 spin-off** was the strategic inflection. Initial sell-side reaction was deliberately measured ("largely neutral", split ratio mildly unfavourable to SBL), but within a week the narrative pivoted to "right decision for minorities" once the Amgen/Regeneron-class TAM unlock was internalized [3][7]. The combined-entity +42% market-cap uplift from May 2025 to January 2026 is the cleanest empirical verdict on whether the action created value [17].

3. **The GSK/Rockville U.S. footprint** transformed the geopolitical risk profile. With U.S. tariff and onshoring rhetoric escalating through 2025, a Korea-only manufacturing base was the biggest tail risk for a CDMO whose largest clients are U.S. pharma; the closure of the U.S. deal in Q1 2026 removed it [20].

**What sentiment cost or did not unlock:**
- Bioepis-side margin volatility (OPM swung from 22.4% in Q2 to 29.3% in Q3 on Teva milestone inflow) meant SEH traded with thinner conviction than SBL.
- Tariff and biosimilar pricing pressure (the Celltrion read-across CLSA flagged in May) remained a discount factor on SEH specifically.
- The 19% free float [4] continued to compress liquidity and inflate beta — not addressed by the split.

**Valuation framework that anchored the move**: CLSA's EV/backlog approach (R²=0.94 historically), with a 4.3× 2Q26CL maximum backlog target implying a fair EV of US$75.3bn → ₩1,500,000 target price [10-paired]. The market's willingness to pay that multiple was reinforced each quarter as the order book accelerated past USD 21B cumulative.

---

## Twelve-month timeline at a glance

| Date | Event | Read |
|---|---|---|
| 22 May 2025 | Board approves horizontal CDMO/biosimilar spin-off [2] | Initial reaction: neutral; CLSA HC O-PF, TP ₩1,500,000 [1] |
| 27 May 2025 | Sell-side reframe: "Making the right decision" [6] | Conflict-of-interest removal → Amgen/Regeneron TAM unlock [7] |
| 23 Jul 2025 | Q2 2025: Rev +11%, OP +9%; FY guide raised to +25-30% [11] | Plant 4 ramp validated; 1H orders ₩3.4T (record) [12] |
| 28 Oct 2025 | Q3 2025: Rev +40%, OP +115%; USD 1.3B U.S. pharma contract [13][14] | Operational acceleration; cumulative orders >USD 20B |
| 24 Nov 2025 | Trading resumes for SBL & Samsung Epis Holdings | Combined market cap +24% vs pre-announcement [17] |
| 21 Jan 2026 | Q4/FY 2025: Rev +30%, OPM 45.4%; GSK U.S. plant deal announced [16][18] | 2026 guide +15-20%; combined value uplift +42% [17] |
| Q1 2026 (Apr) | Rockville close; Eli Lilly LGL partnership; CEPI deal [19][20] | Dual-site manufacturing live; geopolitical de-risk complete |

---

**Sources**
[1] Samsung Biologics — HC O-PF (Entering a new phase) — CLSA, 22 May 2025 — 607960304LinqAlpha.PDF
[2] Samsung Biologics — HC O-PF (Entering a new phase) — CLSA, 22 May 2025 — 607960304LinqAlpha.PDF
[3] Samsung Biologics — HC O-PF (Entering a new phase) — CLSA, 22 May 2025 — 607960304LinqAlpha.PDF
[4] Samsung Biologics — HC O-PF (Entering a new phase) — CLSA, 22 May 2025 — 607960304LinqAlpha.PDF (Snapshot)
[5] Samsung Biologics — HC O-PF (Entering a new phase) — CLSA, 22 May 2025 — 607960304LinqAlpha.PDF (Figure 4: spin-off overview)
[6] Samsung Biologics — HC O-PF (Making the right decision) — CLSA, 27 May 2025 — 607960664LinqAlpha.PDF
[7] Samsung Biologics — HC O-PF (Making the right decision) — CLSA, 27 May 2025 — 607960664LinqAlpha.PDF
[8] Samsung Biologics — HC O-PF (Making the right decision) — CLSA, 27 May 2025 — 607960664LinqAlpha.PDF
[9] Samsung Biologics — HC O-PF (Making the right decision) — CLSA, 27 May 2025 — 607960664LinqAlpha.PDF
[10] Samsung Biologics — HC O-PF (Making the right decision) — CLSA, 27 May 2025 — 607960664LinqAlpha.PDF
[11] Samsung Biologics Q2 2025 Earnings Release — Company IR, 23 July 2025
[12] Samsung Biologics Q2 2025 Earnings Release — Company IR, 23 July 2025
[13] Samsung Biologics Q3 2025 Earnings Release — Company IR, 28 October 2025
[14] Samsung Biologics Q3 2025 Earnings Release — Company IR, 28 October 2025
[15] Samsung Biologics Q3 2025 Earnings Release — Company IR, 28 October 2025 (Spin-off timeline)
[16] Samsung Biologics Q4 2025 Earnings Release — Company IR, 21 January 2026
[17] Samsung Biologics Q4 2025 Earnings Release — Company IR, 21 January 2026 (Spin-off Results & 2026 Outlook)
[18] Samsung Biologics Q4 2025 Earnings Release — Company IR, 21 January 2026 (Business Expansion + CDMO)
[19] Samsung Biologics Q1 2026 Earnings Release — Company IR, April 2026
[20] Samsung Biologics Q1 2026 Earnings Release — Company IR, April 2026 (U.S. Facility Deal Overview)

## Citations

- [11] **[Samsung-Biologics]-2025-Q2-Earnings-Release.pdf** · external
- [12] **[Samsung-Biologics]-2025-Q2-Earnings-Release.pdf** · external
- [13] **[Samsung-Biologics]-2025-Q3-Earnings-Release.pdf** · external
- [14] **[Samsung-Biologics]-2025-Q3-Earnings-Release.pdf** · external
- [15] **[Samsung-Biologics]-2025-Q3-Earnings-Release.pdf** · external
- [16] **Samsung Biologics Co.,Ltd., Q4 2025** · external
- [17] **Samsung Biologics Co.,Ltd., Q4 2025** · external
- [18] **Samsung Biologics Co.,Ltd., Q4 2025** · external
- [19] **Samsung Biologics Co.,Ltd., Q1 2026** · external
- [20] **Samsung Biologics Co.,Ltd., Q1 2026** · external

