BY COMFORT OGBONNA
South Korea’s Samsung Biologics has announced plans to acquire Swiss contract drug manufacturer PolyPeptide in an all-cash transaction valued at approximately 1.46 billion Swiss francs, or about $1.81 billion. The acquisition marks another major step in Samsung Biologics’ global expansion strategy and significantly strengthens its position in the rapidly growing market for peptide-based medicines, including treatments for obesity, diabetes, and other chronic diseases.
Under the terms of the agreement, Samsung Biologics will offer 44.31 Swiss francs per share for PolyPeptide, representing a premium of roughly 6.1% over the company’s closing share price of 41.75 Swiss francs on Friday. The premium is designed to encourage shareholder support while reflecting the strategic value of the Swiss pharmaceutical manufacturer.
The acquisition is expected to significantly enhance Samsung Biologics’ manufacturing capabilities in peptide therapeutics, one of the fastest-growing segments of the pharmaceutical industry. Peptides are increasingly used in innovative medicines because of their ability to target diseases with greater precision, and demand has surged alongside the global success of GLP-1 medications used to treat obesity and Type 2 diabetes.
The market for GLP-1 drugs has expanded rapidly in recent years as healthcare providers increasingly prescribe them not only for diabetes management but also for weight loss. The growing popularity of these therapies has fueled a global race among pharmaceutical companies and contract manufacturers to increase production capacity and secure specialized manufacturing expertise.
Samsung Biologics said the acquisition will allow the company to broaden its portfolio of biologics manufacturing services while strengthening its presence in the peptide drug market. By combining PolyPeptide’s expertise with Samsung’s large-scale manufacturing capabilities, the company aims to better serve pharmaceutical clients developing next-generation peptide medicines.
PolyPeptide’s Board of Directors unanimously recommended that shareholders accept Samsung Biologics’ offer, describing the transaction as an attractive opportunity that provides immediate value while positioning the business for future growth under new ownership.
Following the completion of the acquisition, Samsung Biologics intends to purchase any remaining outstanding shares through a squeeze-out process, allowing the company to obtain full ownership of PolyPeptide. Once that process is complete, PolyPeptide will be delisted from the SIX Swiss Exchange and will operate as a wholly owned subsidiary of Samsung Biologics.
A major factor supporting the transaction is the backing of PolyPeptide’s largest shareholder, Draupnir Holding, which owns approximately 55.65% of the Swiss company. Draupnir has agreed to tender all of its shares into Samsung Biologics’ offer, substantially increasing the likelihood that the acquisition will receive the shareholder approval needed to move forward.
Earlier this year, PolyPeptide disclosed that Draupnir Holding had begun reviewing strategic options for its majority stake, opening the door to a potential sale of the business. That review ultimately resulted in Samsung Biologics emerging as the successful buyer.
Draupnir Holding’s parent organization is the Cryosphere Foundation, an entity that has previously been linked to Swedish billionaire Frederik Paulsen, who has long been associated with investments in biotechnology and life sciences.
The acquisition reflects a broader trend of consolidation within the pharmaceutical manufacturing industry as companies seek to expand their technological capabilities and secure access to high-growth therapeutic markets. Rising demand for peptide medicines, particularly GLP-1 treatments, has made manufacturers with specialized expertise increasingly attractive acquisition targets.
For Samsung Biologics, the transaction represents another significant milestone in its ambition to become one of the world’s leading contract development and manufacturing organizations. By adding PolyPeptide’s specialized peptide manufacturing capabilities to its existing biologics production network, Samsung is positioning itself to capitalize on the continued expansion of the global pharmaceutical industry and the growing demand for advanced therapeutic manufacturing services.
If completed as planned, the acquisition is expected to strengthen Samsung Biologics’ competitive position, expand its international footprint, and enhance its ability to meet the evolving needs of pharmaceutical companies developing innovative medicines for patients worldwide.
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