Samsung Biologics has reached an agreement with Biogen to buy out the US biotechnology firm’s stake in Samsung Bioepis for $2.3 billion (2.7 trillion won), the company said Friday.

Biogen secured a 15 percent stake when Samsung Bioepis was established as a joint venture in 2012. The US company exercised its right in June 2018 to buy up to one share less of Samsung Bioepis’ 50 percent stock.

The payment for the 10,341,852 shares will be carried out over the next two years and full ownership will take effect when the first payment of $1 billion is made, according to Samsung Biologics.

Samsung Biologics said the deal took place on the buyout request of Biogen, adding that both companies agreed to continue their close partnership after the buyout.

“We are thankful to Samsung Biologics for a productive collaboration since 2012,” said Michel Vounatsos, Biogen’s chief executive officer, in a press release.

“We believe biosimilars are essential to help sustain healthcare systems and represent an important value creation opportunity for Biogen.”

Samsung Biologics’ board of directors has also agreed to raise 3 trillion won by issuing new shares to fund the purchase of Samsung Bioepis shares and the company’s strategic growth.

Samsung Bioepis has successfully launched five biosimilars globally, three in autoimmune and two in oncology, with one more product pending release in the market after obtaining authorization and four more biosimiliars in the process of phase 3 clinical trials. A biosimilar is a biologic medical product that is almost an identical copy of an original product that is manufactured by a different company.

The global biosimilar market reached $10 billion in 2021 and is expected to reach $22 billion by 2030 with an annual growth rate of eight percent, according to Samsung Biologics.

Already having the world’s top-notch production capacity as a contract development and manufacturing organization, Samsung Biologics said the buyout will accelerate the push for the company’s bio expansion as it will allow quicker decisions to lay out Samsung Bioepis’ mid- to long-term growth strategies such as new pipeline development, open innovation and new drug development.