Report: Warrant issued for arrest of Samsung BioLogics exec in $three.9B accounting scandal
An govt from the biologics arm of Korean conglomerate Samsung faces arrest as a part of a probe into the corporate’s accounting practices.
The Korean wire service Yonhap Information Company reported Wednesday court docket in Seoul issued an arrest warrant for the manager from the Incheon, Korea-based contract manufacturing group Samsung BioLogics, a senior govt vice chairman surnamed Lee. The arrest is a part of an accounting scandal by which Samsung BioLogics allegedly inflated its worth forward of its 2016 preliminary public providing, after which executives from the corporate – led by CEO Kim Tae-han – destroyed proof of the maneuver. Kim appeared in court docket two weeks in the past in Seoul for a listening to to find out whether or not to challenge a warrant for his arrest. Lee is the eighth Samsung BioLogics govt to be arrested.
It’s alleged that Lee determined at a gathering on Might 5, 2018 to destroy or manipulate paperwork and accounting knowledge for Samsung BioLogics and likewise Samsung Bioepis, a three way partnership it has with Cambridge, Massachusetts-based biotech firm Biogen. The information company quoted the decide as expressing concern Lee might attempt to destroy proof.
The three way partnership between Samsung and Biogen was fashioned in December 2011, with Samsung proudly owning an 85 p.c stake and Biogen proudly owning 15 p.c.
It’s alleged that Samsung BioLogics modified the tactic it used to calculate the worth of its stake in Samsung Bioepis, leading to Samsung BioLogics reporting a sudden revenue in 2015. The alleged fraud quantities to four.5 trillion gained, or $three.9 billion.
Samsung BioLogics and Samsung Bioepis didn’t reply to requests for remark. Biogen declined to remark.
Samsung Bioepis’ foremost focus is on biosimilars. It at present markets a number of within the U.S., together with Eticovo (etanercept-ykro), a biosimilar of Amgen’s autoimmune illness drug Enbrel. One other is Ontruzant (trastuzumab-dttb), a biosimilar of Roche’s Herceptin. Different product candidates in its pipeline embody biosimilars of Roche’s most cancers drug Avastin (bevacizumab) and eye drug Lucentis (ranibizumab) and Alexion’s Soliris (eculizumab), used to deal with uncommon blood problems. It’s also creating a novel biologic, ulinastatin-fc, for digestive system illness.
Picture: Samsung BioLogics