Samsung Biologics (207940.KS) announced on the 20th that it will acquire PolyPeptide Group, a global peptide contract development and manufacturing organization (CDMO) based in Switzerland, for approximately 2.7 trillion won (1.46 billion Swiss francs). This is the largest merger and acquisition (M&A) deal in the history of South Korea’s pharmaceutical and biotech industry.
Samsung Biologics plans to secure a 100% stake in PolyPeptide Group through the acquisition of majority shareholder stakes and a public tender offer. The largest shareholder, Draupnir Holding B.V., has committed to tendering its entire 55.65% stake into the offer. For the tender offer to succeed, at least 66.7% of the total issued shares must be tendered. The company intends to complete all acquisition procedures by the end of December this year.
Through this M&A, Samsung Biologics expands its business portfolio from existing antibody drugs, messenger ribonucleic acid (mRNA), and antibody-drug conjugates (ADC) to now include peptides. The strategic significance is particularly notable as the company secures production capacity for peptides, the core raw material for GLP-1 class obesity and diabetes treatments, which are seeing explosive demand growth in the global market.
Peptides are substances composed of short chains of 2 to 50 amino acids that mimic hormonal and signaling functions in the body to treat diseases. Currently, more than 170 peptide drugs are in clinical development worldwide, with over 80 having been successfully commercialized. Applications are rapidly expanding beyond obesity and diabetes to include anticancer drugs, immune diseases, and brain disorders such as Alzheimer’s.
PolyPeptide Group was spun off from the peptide division of global pharmaceutical company Ferring in 1996 and is headquartered in Baar, Switzerland. It is a veteran CDMO with a track record of over 1,000 peptide therapeutic development and production projects. The company is particularly noted for its eco-friendly manufacturing technology that dramatically reduces organic solvent usage during peptide production, offering strengths in production efficiency and cost reduction.
With this acquisition, Samsung Biologics immediately gains six production and research sites across five countries and approximately 1,500 specialized personnel from PolyPeptide Group. Key locations include Malmö, Sweden; Braine, Belgium; Torrance and San Diego, USA; Strasbourg, France; and Ambernath, India, establishing a global network spanning Europe, the United States, and India. This is expected to enhance geographic proximity to global big pharma clients and provide a foundation for flexible responses to supply chain risks.
Furthermore, Samsung Biologics expects to secure stable revenue immediately after the acquisition by inheriting PolyPeptide Group’s existing CDMO order contracts. The company also plans to review additional expansion of peptide production facilities in line with future market growth.
Global investment banks (IBs) forecast that the obesity treatment market could grow to as much as $150 billion (approximately 223.2 trillion won) by 2035, driven by expanding indications. Consequently, the peptide CDMO market is also expected to grow from $5.52 billion this year at a compound annual growth rate of 20.3%, reaching $29.14 billion (approximately 40 trillion won) by 2035. Given that 62-64% of developers rely on outsourcing due to the complexity of synthesis processes, demand for CDMOs is projected to increase even more steeply.
John Rim, CEO of Samsung Biologics, emphasized, “This acquisition is a strategic decision encompassing all three of our growth axes: production capacity, business portfolio, and global footprint. By combining the capabilities of both companies, we will further strengthen our competitiveness in the global CDMO market.”
Peter Wilden, Chairman of the Board of PolyPeptide Group, stated, “Combining Samsung Biologics’ overwhelming production capacity and operational know-how will allow us to provide differentiated services to customers and secure a firm competitive advantage in the global peptide CDMO market.” The PolyPeptide Group Board of Directors, through independent and conflict-free directors, unanimously recommended that shareholders accept the tender offer.
Samsung Biologics is conducting the public tender offer at a cash price of 44.31 Swiss francs per share. This represents a 40% premium over the closing price of 31.65 Swiss francs on April 10, 2026, just before market rumors emerged, and is approximately 11.6% higher than the volume-weighted average share price over the 60 trading days prior to the announcement. The tender offer is scheduled to commence with the publication of the official offering prospectus at the end of August 2026 and will run for a minimum of 20 trading days following a 10-trading-day cooling-off period under Swiss takeover law. After the transaction closes, Samsung Biologics plans to execute a squeeze-out of remaining minority shares and delist PolyPeptide Group from the SIX Swiss Exchange.
J.P. Morgan is serving as financial advisor for the transaction, with Ernst & Young Hanyoung acting as accounting and tax advisor. Legal advisory is being provided by O’Melveny & Myers LLP and Schellenberg Wittmer Ltd, respectively.
Samsung Biologics currently holds a total global production capacity of 845,000 liters, combining its Plants 1 through 5 in Songdo, Incheon (785,000 liters) and its Rockville, Maryland plant in the U.S. (60,000 liters). The company plans to expand to a total of 1,385,000 liters by 2032 with the construction of Plants 6, 7, and 8 at its second bio campus. With the addition of dedicated peptide GMP production capacity from this acquisition, its position as a comprehensive multi-modal CDMO covering antibodies, mRNA, ADCs, and peptides is expected to be further strengthened.