Photo illustration showing a selection of weight-loss drugs arranged against a white background.
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South Korea’s Samsung Biologics announced Monday that it has submitted an all-cash offer worth 1.46 billion Swiss francs, or about $1.8 billion, to acquire Switzerland’s PolyPeptide Group, a company focused on peptide-based active pharmaceutical ingredients.
The public tender offer values PolyPeptide at 44.31 Swiss francs per share, with the deal expected to be completed by the end of the year.
Shares of PolyPeptide climbed nearly 5.3% in morning trading following the announcement.
Samsung Biologics said the planned takeover would mark the largest biopharmaceutical merger and acquisition deal in South Korean history. The move is intended to broaden the company’s business beyond its existing strengths and deepen its presence in peptide therapeutics, a rapidly expanding area of the biopharma market fueled in part by soaring demand for obesity treatments.
Peptide therapeutics are drugs built from short chains of amino acids. The category includes certain GLP-1 medicines used for obesity and diabetes, which work by mimicking a natural hormone to help curb appetite and support blood sugar control.
“After a comprehensive review of strategic options, the Board is convinced that Samsung Biologics’ offer is compelling for our shareholders, delivering an attractive cash price and immediate, certain value today,” said Peter Wilden, chairman of PolyPeptide.
Samsung Biologics said that the acquisition will broaden the scope of its existing offerings centered on antibody drugs and antibody-drug conjugates. The South Korean firm also seeks to meet growing client demand across a broader range of therapeutic modalities, driven by peptide-based GLP-1 therapies for obesity and diabetes.
The deal will also expand Samsung Biologics’ global footprint by securing PolyPeptide’s global network across Sweden, Belgium, France, the U.S. and India, encompassing its R&D, development, and commercial manufacturing capabilities.
Headquartered in Baar, Switzerland, PolyPeptide Group, which was spun off in 1996 from global pharmaceutical company Ferring, has a track record of developing and producing more than 1,000 therapeutic peptides.
Samsung Biologics closed 3.65% lower on Monday, extending earlier losses.
