Samsung Biologics has secured a 97.98% stake in Polypeptide Group, a global peptide contract development and manufacturing organization (CDMO), through a tender offer. With the result exceeding the 90% threshold required to forcibly acquire the remaining shares held by minority shareholders, the acquisition has received a major boost.
Samsung Biologics announced on the 2nd the preliminary final results of its tender offer for shares in Polypeptide Group. The figures reflect the tender offer, which closed on October 12, as well as an additional acceptance period that ran from October 19 through 30.
The tender offer was conducted through Samsung Peptide, a subsidiary established as a special purpose company (SPC) to acquire Polypeptide Group. The offer covered all 33,016,411 issued shares, excluding treasury shares, at CHF 44.31 per share.
A total of 32,350,302 shares were tendered, according to the preliminary final results. This represents 97.98% of the shares targeted by the offer and 97.66% of all issued shares. The result exceeds both the minimum acceptance threshold of 66.7% required for the transaction and the 90% threshold for a squeeze-out of remaining minority shareholders.
Samsung Biologics plans to acquire the remaining shares through a compulsory purchase process and secure 100% ownership of Polypeptide Group. The definitive final results, subject to verification by an independent auditor, will be announced on the 5th.
The transaction requires regulatory approval from the relevant authorities before it can close. Samsung Biologics is seeking approvals in Europe, India, Australia and Brazil. Once approval is granted, the company plans to complete the transaction by paying the purchase price within 10 business days. Closing is expected by the end of this year or in the first quarter of 2027, depending on the regulatory approval schedule.
Samsung Biologics signed an acquisition agreement with Polypeptide Group in July. The purchase price is CHF 1.46 billion, equivalent to approximately $1.8 billion based on the exchange rate at the time of the agreement in July, or about $1.58 billion using the exchange rate at the end of October. It is the largest merger and acquisition deal in South Korea’s pharmaceutical and biotechnology industry.
With the acquisition, Samsung Biologics will expand its CDMO business beyond antibodies, messenger RNA (mRNA) and antibody-drug conjugates (ADCs) to include peptides. The strategy is to diversify its business portfolio by combining existing operations with high-growth areas and secure new sources of medium- and long-term growth.
Peptides are key ingredients in diabetes and obesity treatments, and demand for them has been rising in the global pharmaceutical and biotechnology markets. Analyses by global investment banks and other institutions project that the global obesity drug market could reach as much as $150 billion by 2035, driven by growing treatment demand and expanding indications. Demand for peptide-based therapies and their key ingredients is also expected to increase.
Samsung Biologics plans to create business synergies by combining its experience in designing and operating large-scale manufacturing facilities with Polypeptide Group’s peptide development and production technologies. It will also consider expanding manufacturing capacity as the market grows to meet customer demand.
Founded in 1996 as a spin-off from the peptide business of global pharmaceutical company Ferring, Polypeptide Group is a global peptide CDMO headquartered in Baar, Switzerland. The company has completed more than 1,000 peptide drug development and manufacturing projects and is recognized for its capabilities in process development for drug candidates and commercial-scale production.
Polypeptide Group also manufactures glucagon-like peptide-1 (GLP-1) drugs for obesity and diabetes, a market segment that has recently seen a sharp increase in sales. The acquisition will therefore enable Samsung Biologics to expand into CDMO services for obesity treatments.
Through the acquisition, Samsung Biologics will gain peptide manufacturing technologies, production facilities and specialized personnel, while also taking over existing CDMO contracts. The company expects this to provide a stable stream of orders and revenue immediately after the acquisition closes.
