Samsung Biologics to acquire PolyPeptide Group for US$1.8B to expand peptide drug manufacturing

SOUTH KOREA—Samsung Biologics has announced an all-cash public tender offer to acquire Switzerland-based PolyPeptide Group for CHF1.46 billion (US$1.8 billion), marking the largest biopharmaceutical merger and acquisition in South Korea’s history.

The proposed acquisition reflects Samsung Biologics’ strategy to broaden its contract development and manufacturing capabilities by expanding into peptide-based active pharmaceutical ingredients (APIs), a rapidly growing segment of the pharmaceutical industry.

Under the terms of the offer, PolyPeptide shareholders will receive CHF44.31 (US$54.60) per share in cash.

Subject to customary closing conditions and regulatory approvals, Samsung Biologics expects to complete the transaction before the end of the year.

Strategic expansion into peptide therapeutics

Samsung Biologics is pursuing the acquisition as demand for peptide therapeutics continues to accelerate, particularly amid the global success of GLP-1 medicines for treating obesity and type 2 diabetes.

By adding peptide manufacturing capabilities to its portfolio, the company aims to strengthen its position as a comprehensive contract development and manufacturing organization (CDMO).

Peptide therapeutics are medicines made from short chains of amino acids. Several of the latest obesity and diabetes treatments belong to this class of drugs, including GLP-1 receptor agonists, which help regulate blood sugar levels while reducing appetite.

As pharmaceutical companies continue to invest heavily in these therapies, manufacturers with peptide production expertise have become increasingly valuable.

Samsung Biologics said the acquisition will complement its established strengths in antibody therapeutics and antibody-drug conjugates (ADCs).

At the same time, it will enable the company to meet growing customer demand for a wider range of biologic drug manufacturing services across multiple therapeutic modalities.

PolyPeptide strengthens Samsung’s global manufacturing network

The acquisition will also significantly expand Samsung Biologics’ international footprint.

PolyPeptide operates research, development and commercial manufacturing facilities across Sweden, Belgium, France, the United States and India, providing Samsung with an established global production network and specialized peptide expertise.

Headquartered in Baar, Switzerland, PolyPeptide Group traces its origins to a business that was spun off from pharmaceutical company Ferring in 1996.

Since then, the company has developed and manufactured more than 1,000 therapeutic peptides for customers worldwide, establishing itself as a leading specialist in peptide-based APIs.

Peter Wilden, chairman of PolyPeptide, said the board unanimously supports the proposed transaction after evaluating its strategic alternatives.

“After a comprehensive review of strategic options, the Board is convinced that Samsung Biologics’ offer is compelling for our shareholders, delivering an attractive cash price and immediate, certain value today,” Wilden said.

Meanwhile, investors responded cautiously to the announcement, with Samsung Biologics shares falling 1.3% in early Monday trading despite the proposed acquisition’s strategic significance.