Samsung Biologics agrees $1.81bn takeover of PolyPeptide

In what is thought to be South Korea's largest biopharma acquisition to date, Samsung Biologics has agreed to buy PolyPeptide, a Swiss contract development manufacturing organisation (CDMO) specialising in peptide drugs.

The CHF 1.46 billion ($1.81 billion) all-cash bid has been made at CHF 44.31 per share – the stock is currently trading up 5.3% at CHF 43.85 – and marks Samsung Biologics' first entry into the peptide manufacturing category. This is currently red hot, being driven by the juggernaut growth of drugs like GLP-1 agonists for weight loss and diabetes.

Rumours of takeover interest in PolyPeptide have been circulating for a few months, and the offer is a 40% premium to the company's share price in April when speculation started in earnest.

Incheon-headquartered Samsung Biologics is a CDMO that, as its name indicates, specialises in biologic medicines like antibodies and antibody-drug conjugates (ADCs) and works with 17 of the top 20 global pharmaceutical firms, making revenues of around $3.5 billion last year.

For comparison, PolyPeptide revenues were €389 million last year, up more than 15%, which the company said was "driven by strong peptide metabolic demand," and the company has said it is modelling 25% to 30% revenue growth this year, and a doubling in its annual turnover by 2028.

"This acquisition reinforces our long-term growth strategy by not only broadening our service portfolio with modality expansion into peptides, including GLP-1, but by also boosting our geographic reach and proximity further within the US, Europe, and India," said the Korean company's chief executive, John Rim.

PolyPeptide operates several sites across Sweden, Belgium, France, the US, and India, together with a corporate office in Switzerland and a separate innovation centre in Strasbourg, France.

The boards of both companies have approved the transaction, which is expected to close by the end of the year and will kick off with a tender offer next month. If all goes to plan and the deal completes, which requires a two-thirds majority ownership, Samsung Biologics will try to claim 100% control and delist PolyPeptide from the Swiss stock exchange.

"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 PolyPeptide CEO Juan Jose Gonzalez.

"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."