Samsung Biologics to acquire Switzerland's PolyPeptide Group in $1.8 billion all-cash deal
Samsung Biologics acquires PolyPeptide Group for 2.7 trillion won ($1.8 billion)
South Korea's Samsung Biologics said on Monday that it had made an all-cash bid of 1.46 billion Swiss francs ($1.8 billion) for Switzerland's PolyPeptide Group , which specializes in peptide-based active pharmaceutical ingredients.
The acquisition will be the largest biopharmaceutical M&A deal in the country's history, Samsung Biologics said, as it aims to diversify its portfolio by expanding into peptide therapeutics, one of the fastest-growing segments in the biopharmaceutical industry due to surging demand for obesity treatment.
Peptide therapeutics are medicines made from short chains of amino acids, including some GLP-1 obesity and diabetes drugs that mimic a natural hormone to reduce appetite and regulate blood sugar.
"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, 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.
