KB News Desk
Korea’s biggest biopharmaceutical acquisition expands CDMO’s global manufacturing network, multi-modality capabilities
Samsung Biologics said Monday it has launched a $1.8 billion all-cash bid to acquire 100 percent of PolyPeptide, entering the peptide sector to bolster its multi-modality and global manufacturing capabilities.
The transaction is expected to be completed by the end of this year to mark the biggest takeover in the history of Korea’s biopharmaceutical industry, according to the company, which is Korea’s leading contract development and manufacturing organization, or CDMO.
As PolyPeptide’s shares are listed on the SIX Swiss Exchange, shareholders will receive about $54.91 in cash for each PolyPeptide stock.
Swiss-headquartered PolyPeptide, which was established in 1952, is a multinational CDMO specializing in producing peptide- and oligonucleotide-based active pharmaceutical ingredients with six manufacturing facilities in the United States, Europe and India. Operating an innovation center in France, PolyPeptide has produced over 1,000 therapeutic peptides to date.
“This acquisition reinforces our long-term growth strategy by not only broadening our service portfolio with modality expansion into peptides including (glucagon-like peptide-1, or GLP-1), but by also boosting our geographic reach and proximity further within the US, Europe and India,” said John Rim, CEO of Samsung Biologics.
“We highly value PolyPeptide’s world class employees, industry leading capabilities and global operational footprint, and look forward to leveraging the complementary strengths of PolyPeptide and Samsung Biologics in our continued growth supporting clients as the CDMO of choice for decades to come.”
Regarded as one of the fastest-growing segments in the biopharmaceutical industry, peptides have come into the spotlight with surging demand for obesity treatments using GLP-1 such as Wegovy and Mounjaro across the globe. According to Grand View Research’s market analysis, the global peptide therapeutics market was valued at $140.9 billion last year and is forecast to reach up to $294.6 billion by 2033.
Underscoring PolyPeptide’s integrated development-to-commercial model with growth focused on a modular, automation approach, Samsung Biologics said it aims to address soaring demand for peptide-based therapeutics, particularly in obesity and diabetes, while advancing innovation across high-growth areas such as oncology and other emerging indications.
“PolyPeptide was built on the dedication of our employees, deep scientific expertise and strong customer focus. 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,” said Peter Wilden, chairman of the board of directors at PolyPeptide.
“At the same time, it represents a transformational opportunity to accelerate our strategic ambitions at a scale we could not reach alone, creating a stronger global partner for customers and a platform uniquely positioned to lead the next phase of growth in peptide-based therapeutics.”
On top of Samsung Biologics’ existing modality portfolio of multispecific antibodies, fusion proteins, antibody-drug conjugates and mRNA therapeutics, the company underscored that the transaction is projected to enhance operational excellence, unlock additional growth opportunities and further strengthen its position as a leading global multi-modality CDMO.
PolyPeptide logged $271 million in revenue in the first half of this year, up 41.6 percent from the same period last year.
“We have transformed PolyPeptide into one of the leading focused peptide CDMOs globally, with a rich pipeline, deep exposure to the fast-growing metabolics space and a marked acceleration in sales growth and profitability,” said Juan Jose Gonzalez, CEO of PolyPeptide.
“Combining our expertise and innovation with the industrial and financial capabilities of Samsung Biologics will create a formidable new partner to lead the next phase of growth in the peptide CDMO market.”
The landmark acquisition announcement follows Samsung Biologics’ plan to open its first European sales office in the Netherlands in the third quarter of this year. In March, the Korean CDMO also completed the acquisition of a biopharmaceutical manufacturing plant in New Jersey, adding a US-based 60,000-liter drug substance capacity to its existing 785,000-liter capacity in Songdo to bring the overall production capacity to 845,000 liters.
