Samsung Could Purchase Alzheimer’s Drugmaker Biogen

Samsung Group is in talks to buy the American drugmaker Biogen, according to published reports Wednesday (Dec. 29).

Biogen has apparently approached the South Korean company to purchase its shares, which could be valued at more than $42 billion. 

In June, Biogen landed regulatory approval in the U.S. for its drug to fight Alzheimer’s disease, despite — as Reuters notes — an outside advisory review that said the company had not shown the treatment’s clinical benefit. 

Read more: Samsung Merges Mobile, Consumer Units Under Co-CEOs 

Samsung said in August it plans to focus on semiconductors, artificial intelligence (AI), robotics and biopharmaceuticals over the next three years, with a goal of investing 240 trillion won ($206 billion) in those areas. 

The company, which earlier this month merged its mobile and consumer electronics divisions, also wants to build a $17 billion chip plant in Taylor, Texas. 

Read more: M&A Scrutiny, Price Regulation Possible Headwinds for Pharma, Biotech in 2022 

This news comes at an interesting time for pharmaceutical and biotech companies, which have enjoyed a profitable 2021 after bringing effective COVID-19 vaccines to market. 

But as PYMNTS noted earlier this month, with the boost from those vaccines revenues likely to lessen in the coming years, these firms will need to seek out new avenues for growth in their industry, such as price increases and acquisitions. 

The big picture for next year is fairly rosy, given the amount of cash some of these companies have amassed, somewhere in the neighborhood of $500 billion for acquisitions. Three companies alone – Pfizer, Johnson & Johnson and Novartis – have collected $150 billion, according to investment bank SVB Leerink.

That doesn’t mean it will be smooth sailing, as both the U.S. Congress and European Commission are prepping legislation that may include price regulation. Meanwhile, regulators have gotten stricter about applying antitrust laws to mergers and acquisitions to avoid monopolistic practices.