Samsung Biologics is acquiring the global peptide contract development and manufacturing organization (CDMO) PolyPeptide Group for approximately 2.7 trillion won (about $2.7 billion). This marks the largest merger and acquisition (M&A) deal in South Korea's pharmaceutical and biotech industry.
On July 20, Samsung Biologics announced through a public disclosure that it has signed an acquisition agreement with PolyPeptide Group. The company plans to complete the acquisition of 100% of the shares by the end of December through a combination of purchasing shares from major shareholders and a tender offer.
With this acquisition, Samsung Biologics aims to expand its business portfolio, which currently focuses on antibody drugs, mRNA (messenger RNA), and ADC (antibody-drug conjugates), into the rapidly growing peptide sector.
◆ Peptide Drugs Gain Attention in Obesity and Diabetes Treatment Market
Peptides are substances made up of chains of 2 to 50 amino acids that constitute proteins. They act as 'messengers' in the body, transmitting hormones or signals between cells, and synthetic versions of these peptides are developed into peptide drugs.
A prime example is the GLP-1 (glucagon-like peptide-1) class of drugs, which are gaining significant market traction for obesity and diabetes treatment.
According to global investment banks, the global obesity treatment market is projected to grow to as much as $150 billion (approximately 200 trillion won) by 2035. As the most promising single-disease treatment, the demand for peptide-based therapies, which are key raw materials, is expected to surge.
PolyPeptide Group is a specialized peptide CDMO that spun off from the peptide production division of global pharmaceutical company Ferring in 1996. It is headquartered in Baar, Switzerland.
The company boasts over 1,000 development and production achievements related to peptide drugs and is recognized for its top-tier capabilities in developing production processes for peptide drug candidates.
Notably, it possesses manufacturing technology that significantly reduces the use of organic solvents, which are liquid raw materials needed for peptide production. This technology allows for cost savings, improved production efficiency, and reduced waste, contributing to environmentally friendly processes.
Currently, PolyPeptide Group operates six production sites and research and development (R&D) centers across five countries, including Europe, the United States, and India, employing over 1,500 skilled professionals.
Through this agreement, Samsung Biologics will acquire PolyPeptide Group's production facilities, technology, and workforce, strengthening its geographical presence in key locations such as Europe, the United States, and India.
Additionally, Samsung Biologics will inherit the CDMO contracts currently held by PolyPeptide Group, ensuring a stable flow of orders immediately following the acquisition.
Samsung Biologics plans to maximize synergies by combining its large-scale production facility design and operational expertise with PolyPeptide Group's peptide development and production technologies. The company is also considering expanding production facilities in response to the growing peptide market to meet customer demand promptly.
John Lim, CEO of Samsung Biologics, stated, "This acquisition is a strategic decision that encompasses Samsung Biologics' three major growth pillars: production capacity, business portfolio, and global presence. It will contribute to enhancing corporate and shareholder value."
On July 20, Samsung Biologics announced through a public disclosure that it has signed an acquisition agreement with PolyPeptide Group. The company plans to complete the acquisition of 100% of the shares by the end of December through a combination of purchasing shares from major shareholders and a tender offer.
With this acquisition, Samsung Biologics aims to expand its business portfolio, which currently focuses on antibody drugs, mRNA (messenger RNA), and ADC (antibody-drug conjugates), into the rapidly growing peptide sector.
◆ Peptide Drugs Gain Attention in Obesity and Diabetes Treatment Market
Peptides are substances made up of chains of 2 to 50 amino acids that constitute proteins. They act as 'messengers' in the body, transmitting hormones or signals between cells, and synthetic versions of these peptides are developed into peptide drugs.
A prime example is the GLP-1 (glucagon-like peptide-1) class of drugs, which are gaining significant market traction for obesity and diabetes treatment.
According to global investment banks, the global obesity treatment market is projected to grow to as much as $150 billion (approximately 200 trillion won) by 2035. As the most promising single-disease treatment, the demand for peptide-based therapies, which are key raw materials, is expected to surge.
PolyPeptide Group is a specialized peptide CDMO that spun off from the peptide production division of global pharmaceutical company Ferring in 1996. It is headquartered in Baar, Switzerland.
The company boasts over 1,000 development and production achievements related to peptide drugs and is recognized for its top-tier capabilities in developing production processes for peptide drug candidates.
Notably, it possesses manufacturing technology that significantly reduces the use of organic solvents, which are liquid raw materials needed for peptide production. This technology allows for cost savings, improved production efficiency, and reduced waste, contributing to environmentally friendly processes.
Currently, PolyPeptide Group operates six production sites and research and development (R&D) centers across five countries, including Europe, the United States, and India, employing over 1,500 skilled professionals.
Through this agreement, Samsung Biologics will acquire PolyPeptide Group's production facilities, technology, and workforce, strengthening its geographical presence in key locations such as Europe, the United States, and India.
Additionally, Samsung Biologics will inherit the CDMO contracts currently held by PolyPeptide Group, ensuring a stable flow of orders immediately following the acquisition.
Samsung Biologics plans to maximize synergies by combining its large-scale production facility design and operational expertise with PolyPeptide Group's peptide development and production technologies. The company is also considering expanding production facilities in response to the growing peptide market to meet customer demand promptly.
John Lim, CEO of Samsung Biologics, stated, "This acquisition is a strategic decision that encompasses Samsung Biologics' three major growth pillars: production capacity, business portfolio, and global presence. It will contribute to enhancing corporate and shareholder value."
* This article has been translated by AI.
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