Samsung Biologics is making a blockbuster acquisition of PolyPeptide Group AG, a Swiss peptide contract development and manufacturing organization (CDMO), for approximately 2.7 trillion won (1.46 billion Swiss francs, approximately $1.8 billion) — the largest deal in South Korea’s pharmaceutical and biotech industry history. The acquisition marks Samsung Biologics’ full-scale entry into the rapidly growing market for obesity and diabetes drug ingredients, significantly expanding its business portfolio.
Samsung Biologics announced on the 20th through a regulatory filing that it has signed an agreement to acquire 100% of PolyPeptide Group’s shares through an all-cash public tender offer. The offer price is 44.31 Swiss francs per share, representing a premium of approximately 6.1% over the closing price of 41.75 Swiss francs on the 17th. Notably, this is 40% higher than the share price level in early April.
Samsung Biologics plans to establish an acquisition subsidiary in Switzerland by the end of July and conduct the tender offer for PolyPeptide shares listed on the SIX Swiss Exchange between September and November. The company aims to complete the acquisition between late December and January of next year, following antitrust approvals from the European Union, Australia, Brazil, and other jurisdictions. After the acquisition, Samsung Biologics intends to squeeze out remaining minority shareholders, delist PolyPeptide from the SIX Swiss Exchange, and integrate it as a wholly owned subsidiary.
The transaction is backed by firm support from the majority shareholder. Draupnir Holding, which holds approximately 55.65% of PolyPeptide Group, has committed to tendering its entire stake in the offer. Draupnir Holding’s parent company is reportedly the Cryosphere Foundation, linked to Swedish billionaire Frederik Paulsen. PolyPeptide’s board of directors has also unanimously recommended that shareholders participate in the tender offer.
Spun off from the peptide division of global pharmaceutical company Ferring in 1996, PolyPeptide Group is a global peptide CDMO specialist with six production facilities across five countries, including Europe, the United States, and India. The company has over 1,500 skilled professionals and a track record of more than 1,000 peptide drug development and production projects. Its key clients include global pharmaceutical giants such as Eli Lilly, and Samsung Biologics will inherit these customer contracts and pipelines through the acquisition.
The explosive growth potential of the global obesity treatment market underpins Samsung Biologics’ decision to pursue this mega-deal. Peptides are substances composed of short chains of amino acids and serve as the core raw material for GLP-1 (glucagon-like peptide-1) class obesity and diabetes treatments, represented by Wegovy and Zepbound. Global investment banks project that the worldwide obesity treatment market could grow to as much as $150 billion (approximately 220.9 trillion won) by 2035.
Additionally, the approaching patent expirations for GLP-1 class therapies are further increasing demand for raw materials, while the “de-risking from China” trend driven by the U.S. Biosecure Act is also proving favorable. As major global pharmaceutical companies become reluctant to use Chinese-sourced raw materials, Western CDMOs with Good Manufacturing Practice (GMP) facilities compliant with U.S. Food and Drug Administration (FDA) regulations are gaining increased importance.
PolyPeptide is considered one of the three major Western peptide CDMOs, alongside Bachem and CPC Scientific. While the company has posted book losses over the past three years due to depreciation burdens, analysts view this as a result of aggressive facility investments rather than poor performance. PolyPeptide has been proactively expanding production capacity, allocating over 20% of annual revenue to capital expenditures (CAPEX). Preliminary results for the first half of 2026 showed revenue surging 41.6% year-on-year to 236.6 million euros, with the EBITDA margin jumping to 20.7%. The company has also raised its full-year outlook, driven by surging demand in the metabolic therapeutics sector and an increasing share of revenue from major pharmaceutical clients.
“This acquisition is a strategic decision encompassing all three core growth axes — production capacity, business portfolio, and global footprint,” said John Rim, CEO of Samsung Biologics. “By combining the unique capabilities of both companies, we will provide customers with broader and superior solutions and strengthen our competitiveness in the global CDMO market.” Peter Wilden, Chairman of PolyPeptide Group’s Board of Directors, added, “The combination of Samsung Biologics’ overwhelming production capacity and operational expertise will enable us to deliver more differentiated services to customers and secure a firm competitive advantage in the global peptide CDMO market.”
Meanwhile, market reaction has been mixed. Samsung Biologics’ stock initially rose 2.29% to 1.428 million won (approximately $969) shortly after the market opened but quickly reversed course, trading around the 1.36 million won (approximately $924) level, down approximately 2% from the previous session. This appears to reflect a combination of short-term financial burdens from the massive cash outlay and profit-taking. Samsung Biologics is already planning investments of approximately 14.5 trillion won (approximately $9.8 billion) for the expansion of its Songdo Bio Campus 2 and 3 and its Rockville, Maryland production facility, making significant capital requirements inevitable with the addition of the 2.7 trillion won acquisition price. The company plans to fund the acquisition through a combination of cash on hand and borrowings.
“Samsung Biologics is a company with solid financial capabilities built over time,” an industry source commented. “In the pharmaceutical and biotech industry, it’s more important to assess portfolio expansion and synergy potential from a business perspective rather than focusing solely on financial burdens.” Analysts note that with this acquisition, Samsung Biologics has expanded its business scope from antibody drugs, messenger RNA (mRNA), and antibody-drug conjugates (ADC) into peptides, establishing a foundation to become a truly comprehensive CDMO player.