Samsung Biologics (207940.KS) will acquire a peptide-focused contract development and manufacturing organization (CDMO) for 2.7 trillion won. The deal is the largest in the history of Korea's pharmaceutical and bio industry. As Samsung Biologics is acquiring a company that has produced ingredients for the weight-loss drugs Wegovy and Saxenda, its business scope will expand from antibody drugs to obesity and diabetes treatments.
Samsung Biologics said in a regulatory filing on the 20th that it had signed a contract to acquire PolyPeptide Group for 1.46 billion Swiss francs (about 2.7 trillion won). The company plans to secure a 100% stake through the acquisition of the major shareholder's shares and a tender offer, and to complete the acquisition by the end of this year. The size of this acquisition is the largest ever in Korea's pharmaceutical and bio industry.
Founded in 1996, PolyPeptide Group is a specialized CDMO capable of everything from process development to commercial production of peptide drug candidates. Its major products include ingredients for Danish drugmaker Novo Nordisk's weight-loss drugs Wegovy and Saxenda, its diabetes treatments Ozempic, Rybelsus and Victoza, and U.S.-based Rhythm Pharmaceuticals' rare genetic obesity treatment Imcivree. As Samsung Biologics has decided to take over the CDMO contracts held by PolyPeptide Group, it will produce these ingredients going forward. John Rim, CEO of Samsung Biologics, stressed, "This acquisition is a strategic decision that encompasses all three of Samsung Biologics' growth pillars: production capacity, business portfolio and global footprint."
