Samsung Biologics Strikes 2.7 Trillion Won Mega Deal, Expands into Key Peptide Market for Obesity Drugs

Largest M&A Deal in Korea’s Pharma and Biotech Industry
Growing Demand for Obesity and Metabolic Disease Treatments
Synergy from Combined Technological and Production Capabilities

Samsung BioLogics is acquiring PolyPeptide Group, a leading global peptide contract development and manufacturing organization (CDMO), for approximately KRW 2.7 trillion (2.7 trillion won). This marks the largest deal in the history of mergers and acquisitions (M&A) within Korea’s pharmaceutical and biotech industry. Having grown based on the mass production of antibody therapeutics, Samsung BioLogics will now significantly expand its business into the field of peptides, which are key active substances for obesity and diabetes treatments.

On July 20, Samsung BioLogics announced that it had signed an agreement to acquire 100% of the shares of PolyPeptide Group, which is listed on the Swiss stock exchange. The share value amounts to CHF 1.46 billion (approximately KRW 2.7 trillion). Samsung BioLogics plans to secure more than two-thirds of the total shares through a public tender offer, including around 55.65% held by the largest shareholder, and to complete the transaction by the end of this year pending regulatory approvals in each country.

PolyPeptide is a specialized CDMO that handles everything from process development of peptide-based active pharmaceutical ingredients (APIs) to the production of clinical samples and commercial-scale manufacturing. The company operates six production facilities in five countries—namely the United States, Belgium, France, Sweden, and India—employing approximately 1,500 staff. With over 70 years of accumulated experience in peptide manufacturing, PolyPeptide boasts more than 1,000 development and manufacturing achievements.

Driven by increasing demand for obesity and metabolic disease treatments, the company’s performance has rapidly improved. Last year, PolyPeptide reported revenue of EUR 389.3 million (approximately KRW 662.4 billion), a 15.6% increase from the previous year. Its earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped by 84.4% year-on-year to EUR 46.8 million (around KRW 79.6 billion).

The most significant reason Samsung BioLogics pursued the PolyPeptide acquisition is the growth potential of the obesity and diabetes drug market. Samsung BioLogics has already broadened its business to include messenger RNA (mRNA) and antibody-drug conjugates (ADCs). Recently, as demand for glucagon-like peptide-1 (GLP-1) treatments has surged, the need for peptide-based APIs, which are key active substances, has also quickly increased. By acquiring PolyPeptide, a company equipped with advanced technology, an established client base, and commercial manufacturing experience, Samsung BioLogics will be able to enter this market ahead of schedule.

This acquisition will also greatly expand Samsung BioLogics’ global production network. With PolyPeptide’s manufacturing sites in the U.S., Europe, and India, Samsung BioLogics will establish a production network connecting Korea, the United States, Europe, and India—including its existing plants in Songdo, Incheon and Rockville, Maryland. This will enable the company to provide development and manufacturing services closer to clients and more effectively respond to supply chain risks unique to each region.

Samsung BioLogics Plant 4 located in Yeonsu-gu, Incheon. Samsung BioLogics

By succeeding existing CDMO contracts managed by PolyPeptide Group, Samsung BioLogics will be able to ensure a steady stream of orders from the moment the acquisition is finalized. The company plans to combine its accumulated expertise in large-scale manufacturing facility design and operation with PolyPeptide’s peptide process technology to maximize business synergy while also reviewing further expansions of production facilities in response to the rising peptide market.

Global investment banks project that the obesity drug market will grow to as much as USD 150 billion (around KRW 200 trillion) by 2035, driven by rising demand and broader indications. As this market expands, demand for peptide APIs—the main component of GLP-1 treatments—and for CDMO services is expected to rise accordingly.

Peter Wilden, Chairman of the Board of PolyPeptide Group, said, “PolyPeptide Group has grown into a global leader in peptide CDMO services based on our accumulated technical expertise and strong customer focus. The combination of Samsung BioLogics’ world-class large-scale manufacturing capacity and operational know-how will not only allow us to offer even more differentiated services to our clients, but also secure a decisive competitive edge in the global peptide CDMO market.”

John Rim, CEO of Samsung BioLogics, stated, “This acquisition is a strategic decision that encompasses all three growth pillars of Samsung BioLogics—manufacturing capacity, business portfolio, and global footprint—and will enhance both corporate and shareholder value. By uniting the two companies’ unmatched capabilities, we will deliver broader and superior solutions to our customers and further strengthen our competitiveness in the global CDMO market.”

This content was produced with the assistance of AI translation services.