Samsung Biologics will carry out the largest merger and acquisition in South Korea's pharmaceutical and biotechnology industry by acquiring Switzerland-based peptide CDMO company PolyPeptide Group for 1.46 billion Swiss francs (about 2.7 trillion won). The acquisition will allow Samsung Biologics to enter the fast-growing peptide therapeutics market, fueled by strong demand for obesity and diabetes treatments.
Samsung Biologics said July 20 that it plans to acquire 100% of PolyPeptide Group through the purchase of the controlling shareholder's stake followed by a tender offer, with the transaction expected to close by the end of December.
The acquisition will expand Samsung Biologics' CDMO portfolio beyond antibody therapeutics, messenger RNA (mRNA) and antibody-drug conjugates (ADCs) into peptide-based medicines, one of the industry's fastest-growing segments.
PolyPeptide Group was spun off in 1996 from the peptide manufacturing division of global pharmaceutical company Ferring. Headquartered in Baar, Switzerland, the company has completed more than 1,000 peptide drug development and manufacturing programs and is regarded as a global leader in process development for peptide drug candidates. It also possesses proprietary manufacturing technology that significantly reduces the use of organic solvents in peptide production.
Through the acquisition, Samsung Biologics will secure PolyPeptide Group's manufacturing facilities, technology and specialized workforce. PolyPeptide Group currently operates six manufacturing sites and research facilities across five countries in Europe, the United States and India, employing about 1,500 skilled professionals.
Samsung Biologics will assume PolyPeptide Group's existing CDMO contracts, allowing it to continue customer orders without interruption after the acquisition closes.
John Rim, CEO of Samsung Biologics, said the acquisition strengthens the company's three key growth pillars--manufacturing capacity, business portfolio and global footprint.
“By combining the strengths of both companies, we will provide customers with broader and higher-quality solutions while further strengthening our competitiveness in the global CDMO market,” Rim said.
Peter Wilden, chairman of PolyPeptide Group, said combining Samsung Biologics' manufacturing scale and operational expertise would strengthen the company's competitive position in the global peptide CDMO market.
According to global investment banks, the global obesity treatment market is expected to reach as much as $150 billion (about 200 trillion won) by 2035, driven by rapidly growing demand and expanding treatment indications.
