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Samsung BioLogics denies fraud allegations in South Korea listing

Christ Ratcliffe | Bloomberg | Getty Images

Contract manufacturing firm Samsung BioLogics has denied allegations it juggled its accounting to show a surprise profit ahead of a listing last year on the South Korea stock exchange, saying a revaluation of its stake in biosimilar maker Samsung Bioepis was in line with accounting practices, The Korea Herald reported on Friday.

A South Korean legislator, Sim Sang-jeung, chairwoman of the minor opposition Justice Party and local civic group People's Solidarity for Participatory Democracy, suggested that Samsung BioLogics, which was unprofitable since starting operations in 2011 reported a net profit of 1.9 trillion won ($1.66 billion) in 2015 based on a revaluation of its holdings in the Samsung Bioepis unit in which US-based Biogen holds about 8 percent.

The listing of Samsung BioLogics in November last year was the second largest in on record and raised 2.25 trillion won ($1.97 billion).

Samsung BioLogics makes drugs for firms such as Swiss-based Roche under license, while it owns a stake of more than 90 percent of Samsung Bioepis, which makes biosimilars, versions of complex molecule drugs such as autoimmune disease therapy Enbrel.

Read the full report here.

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