Samsung BioLogics to Raise 3 Trillion Won via Rights Offering... Secures Capital for 'Three-Pronged Expansion'

2.7 Trillion Won Invested in Polypeptide Group Acquisition
Transitioning from Antibody-Centered Business to Multi-Modality CDMO
Expanding Capital Base to Secure Additional Investment Capacity

Samsung BioLogics is launching a paid-in capital increase worth 3 trillion won. The company aims to secure funds necessary for the acquisition of a global peptide contract development and manufacturing (CDMO) company and for expanding its production facilities in Songdo. With these resources, Samsung BioLogics plans to extend its antibody-centered business structure into a 'multi-modality CDMO,' accelerating its journey to become a global top-tier player. By proactively increasing its equity rather than taking on more debt ahead of large-scale investments, the company will also reinforce its financial capacity for additional growth opportunities.

On August 28, Samsung BioLogics announced after its board meeting that it has approved a shareholder-allotted paid-in capital increase with a general public offering for forfeited shares, totaling 3.009 trillion won. The planned number of new shares to be issued is 2,270,000, accounting for approximately 4.9% of the company’s currently outstanding shares. The expected issue price per share is 1,322,000 won. About 90% of the funds raised, or 2.7062 trillion won, will be used for the acquisition of PolyPeptide Group, a global peptide CDMO whose purchase was decided last month. The remaining 294.8 billion won will be allocated toward the expansion of the second Bio Campus in Songdo, Incheon.

The decision to fund major growth investments through this paid-in capital increase is aimed at ensuring further investment capacity in the future, according to the company. By expanding equity rather than taking on significant debt, Samsung BioLogics seeks to manage its financial risk as it simultaneously acquires PolyPeptide and enlarges its Songdo facilities, preserving financial flexibility for future mergers and acquisitions (M&A) or capital expenditures. However, as the issuance of new shares inevitably dilutes the shares held by existing shareholders, Samsung BioLogics explained it set the capital increase ratio at a relatively low 4.9%.

This capital increase is a strategic move to support Samsung BioLogics’ so-called 'three pillars of expansion,' spanning production capacity, business portfolio, and global footprint. Through bold, preemptive investments, Samsung BioLogics has rapidly scaled up its antibody drug manufacturing, securing competitiveness in the global CDMO market. The company now plans to diversify its antibody-focused business model and establish a comprehensive CDMO system capable of producing a wider range of pharmaceuticals to meet client demands.

Last month, Samsung BioLogics agreed to acquire PolyPeptide Group for 1.46 billion Swiss francs (approximately 2.7 trillion won)—the largest M&A deal in the history of Korea’s pharmaceutical and biotechnology industry. PolyPeptide is a global CDMO specializing in the development and production of peptide-based drugs. Upon completion of the acquisition, Samsung BioLogics will expand its product portfolio beyond its core antibody drugs to include messenger RNA (mRNA), antibody-drug conjugates (ADC), and, now, peptides as well.

Peptides have recently emerged as a new growth area within the CDMO sector, driven by the rising market for obesity and diabetes treatments. According to PolyPeptide, the global peptide pharmaceuticals market grew from 94 billion dollars (approximately 130 trillion won) last year and is projected to grow at an average annual rate of 13.4%, reaching 200 billion dollars (about 276 trillion won) by 2031. With this acquisition, Samsung BioLogics will also secure PolyPeptide’s overseas facilities in the United States, Europe, and India, achieving greater geographic diversification of its manufacturing base.

The company is also committed to maintaining its leading manufacturing capability in antibody drugs. Building on Plant 5, completed last year, Samsung BioLogics plans to sequentially construct Plants 6 through 8 at its second Bio Campus in Songdo. Once the expansion is complete, the company’s total global antibody drug manufacturing capacity is expected to reach 1,385,000 liters.

John Rim, CEO of Samsung BioLogics, stated, "We will do our utmost to enhance corporate value by unwaveringly pursuing the three pillars of expansion, including the PolyPeptide Group acquisition and the expansion of our second Bio Campus."

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