Samsung Biologics is entering the peptide contract development and manufacturing organization (CDMO) market in earnest through the acquisition of global peptide CDMO company Polypeptide Group. The company plans to diversify its business portfolio and secure mid- to long-term growth drivers by expanding beyond its existing antibody drug-focused business into the fast-growing peptide sector.
Samsung Biologics announced that it has signed an acquisition agreement with global peptide CDMO company Polypeptide Group. The total acquisition value is 1.46 billion Swiss francs (approximately $1.8 billion), making it the largest merger and acquisition (M&A) deal in South Korea’s pharmaceutical and biotech industry.
Samsung Biologics aims to acquire 100% ownership of Polypeptide Group through the purchase of shares held by major shareholders and a public tender offer, with the acquisition expected to be completed by December this year.
Through the acquisition, Samsung Biologics plans to accelerate its “three-pillar expansion strategy” centered on production capacity, business portfolio and global locations, while establishing a foundation for growth in the global peptide CDMO market.
Expanding Beyond Antibody-Focused Business Into Peptides… Broadening Next-Generation Modalities
According to industry sources on July 20, peptides have recently emerged as a key area of focus in the global biotechnology industry alongside the growth of obesity and diabetes treatment markets. Their applications are also rapidly expanding beyond metabolic diseases into areas including cancer, endocrine disorders and rare diseases.
The key role of peptides lies in their function as “biological signals that deliver instructions to cells.” The human body contains approximately 37 trillion cells, and peptides are used when cells communicate instructions such as “reduce inflammation” or “secrete insulin.”
More than 170 peptide-based medicines are currently in clinical development worldwide, with more than 80 successfully commercialized. As large-scale production capabilities and stable supply chains are essential during commercialization, demand for specialized CDMO providers is increasing.
According to Business Research Insights, the global peptide CDMO market is projected to grow at an annual average rate of 20.3%, expanding from $5.52 billion in 2026 to $29.14 billion by 2035, indicating strong market growth potential.
Samsung Biologics has continued expanding its capabilities in next-generation modalities, including securing mRNA production capabilities in 2021, launching a dedicated antibody-drug conjugate (ADC) manufacturing facility last year and introducing its “Samsung Organoids” service.
In December last year, the company also secured land for its third Bio Campus, which will be developed as a manufacturing hub for next-generation modalities. Samsung Biologics is considering building production facilities for high-value new modalities, including peptides, cell and gene therapies (CGT) and next-generation vaccines.
The company expects to secure Polypeptide Group’s peptide manufacturing facilities, production technologies and specialized workforce, while inheriting existing CDMO contracts to maintain stable order volumes and revenue immediately following the acquisition.
Securing Six Locations Across Europe, U.S. and India… Strengthening Global Supply Chain
Polypeptide Group is headquartered in Baar, Switzerland. The company operates six peptide production and development sites across five countries, including Europe, the United States and India.
The locations include Malmö, Sweden; Braine-l’Alleud, Belgium; Torrance and San Diego in the United States; Strasbourg, France; and Ambernath, India.
Samsung Biologics expects to improve access to multinational pharmaceutical companies by connecting these facilities with its existing production site in Rockville, Maryland, while responding more flexibly to regional supply chain changes.
The company currently operates sales offices in New Jersey, Boston and Tokyo, Japan, and plans to open a new sales office in the Netherlands during the third quarter of this year.
Combining Technologies From Both Companies… Expecting Cross-Selling and Large-Scale Manufacturing Synergies
Samsung Biologics plans to create synergies by combining Polypeptide Group’s end-to-end peptide capabilities with Samsung Biologics’ experience in large-scale commercial manufacturing.
As many global pharmaceutical companies develop both antibody-based medicines and peptide therapies, the companies expect to expand cross-selling opportunities by leveraging the combined customer bases of both organizations.
John Rim, CEO of Samsung Biologics, said, “This acquisition is a strategic decision that encompasses all three of Samsung Biologics’ growth pillars: production capacity, business portfolio and global locations.” He added, “By combining the unique capabilities of both companies, we will provide customers with broader and higher-quality solutions while strengthening our competitiveness in the global CDMO market.”