Samsung Biologics to buy Swiss PolyPeptide Group in $1.8 billion
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South Korea’s Samsung Biologics said Monday it is offering 1.46 billion Swiss francs ($1.8 billion) in an all-cash deal for Switzerland’s PolyPeptide Group, which specializes in peptide-based active pharmaceutical ingredients.
Under the terms of the public tender offer, shareholders will receive 44.31 Swiss francs per share. The transaction is expected to be completed by the end of this year.
Samsung Biologics said the acquisition was the largest biopharmaceutical merger and acquisition deal in the country’s history.
The company said it aims to diversify its portfolio by expanding into peptide therapies, one of the fastest-growing segments in the biopharmaceutical industry due to increasing demand for obesity treatments.
Peptide therapeutics are drugs 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 of Directors is convinced that Samsung Biologics’ offer is attractive to our shareholders and offers an attractive upfront price and immediate, definitive value,” said Peter Wilden, Chairman of PolyPeptide.
Samsung Biologics said the acquisition would take place expand the scope its current offerings focused on antibody drugs and antibody-drug conjugates. The South Korean firm also aims to meet growing customer demand for a broader range of therapeutic modalities driven by peptide-based GLP-1 treatments for obesity and diabetes.
The agreement will also expand Samsung Biologics’ global footprint by securing PolyPeptide’s global network in Sweden, Belgium, France, the US and India, covering PolyPeptide’s R&D, development and commercial manufacturing capabilities.
Headquartered in Baar, Switzerland, and spun off from global pharmaceutical company Ferring in 1996, PolyPeptide Group has a track record of developing and manufacturing more than 1,000 therapeutic peptides.
Samsung Biologics shares fell 1.3% in early trading Monday.
