SHARES of Biogen surged yesterday following a report that South Korean giant Samsung Group is in talks to acquire the US biotech company for more than US$40 billion (RM160 billion).

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 US$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% in yesterday’s session to US$258.31 and climbed further in after-hours trading.

A Biogen spokesman declined comment.

Founded in 1978 by a team that included Nobel Prize winners Walter Gilbert and Phillip Sharp, Biogen is known for medicines to treat multiple sclerosis in addition to Aduhelm.

The company, based in Cambridge, Massachusetts, had revenues of US$13.4 billion last year and finished 2020 with about 9,100 employees.

Shares of Biogen have fallen nearly 50% 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% jump in operating profit in the most recent quarter to 15.8 trillion won (RM27 billion).

Biogen and Samsung Biologics currently have a joint venture to develop, manufacture and market biosimilars. – AFP, December 30, 2021.