2:52 PM
Jul 12, 2018
 |  BC Extra  |  Company News

Korea: Samsung Biologics violated accounting rules

Korea’s Securities and Futures Commission ruled Thursday that Samsung BioLogics Co. Ltd. (KSE:207940) violated accounting rules during its 2016 IPO and has requested dismissal of executives and referral of the case to prosecutors.

The move follows an audited implemented by Korea's Financial Supervisory Service in May (see “Samsung BioLogics Shares Fall on Audit Concerns”).

The commission said the company intentionally omitted information regarding the valuation of Samsung Bioepis, the company’s JV with Biogen Inc. (NASDAQ:BIIB), in its public disclosure prior to the offering. Samsung BioLogics, which has maintained the legality of its accounting practices, called the decision “unfortunate” on Thursday and said it will consider filing an administrative lawsuit.

This June, Biogen exercised its option to increase ownership in Samsung Bioepis to about 49.9% from 5.4% for $700 million (see “Biogen Ups Biosimilar JV Stake”).

Samsung BioLogics gained W14,000 to W429,000 on Thursday.

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