Samsung Biologics to Buy PolyPeptide for $1.8 Billion
Samsung Biologics Co. has reached an agreement to acquire Switzerland’s PolyPeptide Group AG in an all-cash transaction, which values the contract drugmaker’s equity at approximately 1.46 billion Swiss francs, thereby enhancing its manufacturing capabilities. The South Korean company is proposing 44.31 Swiss francs per share for PolyPeptide, as indicated in a statement. The offer price signifies a 6.1% premium relative to PolyPeptide’s closing price on Friday and reflects a 40% increase compared to the period when market speculation about a potential acquisition of the company began, the statement noted.
Shares of Samsung Biologics experienced a decline of up to 3.3% in Seoul on Monday. PolyPeptide shares surged by as much as 5.6%. PolyPeptide maintains manufacturing facilities in Sweden, Belgium, France, the United States, and India, with competencies that encompass research and development, process development, and commercial manufacturing. The acquisition enhances Samsung Biologics’ position in the contract development and manufacturing sector by incorporating PolyPeptide’s peptide manufacturing capabilities, responding to the increasing demand from drugmakers for peptide-based therapies, particularly for obesity and metabolic disorders. The transaction contributes to the increasing trend of deal activity among Swiss companies.
Industrial giant ABB Ltd. has reached an agreement to acquire British firm Rotork Plc., marking the largest acquisition in its history. At the beginning of the year, Zurich Insurance extended a proposal to UK insurer Beazley Plc. Morgan Stanley analyst Mi Hyun Kim characterised Samsung Biologics’s acquisition as “positive.” She wrote in a note “The peptides drug market is growing rapidly thanks to GLP-1 drugs.” PolyPeptide focuses on the development and production of synthetic peptides associated with metabolic processes, particularly addressing obesity and diabetes. The biotech has been undergoing a turnaround that has been positively received by investors and is in the process of expanding its facilities.
Earlier this year, it was reported that the Zug-based firm, along with its controlling shareholder Frederik Paulsen Jr., attracted takeover interest from private equity funds. Samsung Biologics indicated that the transaction is anticipated to reach completion by the end of 2026, contingent upon the fulfilment of customary closing conditions. PolyPeptide’s board has unanimously endorsed the proposal, as stated in the announcement. Swiss law firm Homburger and Morgan Stanley provided advisory services to PolyPeptide. JPMorgan Chase & Co. served as the financial adviser to Samsung Biologics, while O’Melveny & Myers LLP and Schellenberg Wittmer Ltd offered legal counsel.
