SEOUL, July 20 (Yonhap) — Samsung Biologics Co. said Monday it will acquire a Swiss-based contract development and manufacturing organization (CDMO) for 2.7 trillion won (US$1.8 billion) as part of its global expansion strategy.
South Korea’s leading biotech company said it has signed an agreement with PolyPeptide Group, which develops and manufactures peptides, a key ingredient used in treatments for obesity and diabetes, to acquire a 100 percent stake in the Swiss company by the end of December, according to a press release.
“The acquisition will be carried out through the purchase of the largest shareholder’s 55.65 percent stake, followed by an all-cash public tender offer,” the release said.
The public tender offer is expected to begin in mid-September.
The transaction marks the largest acquisition in South Korea’s biopharmaceutical industry.
“This upcoming acquisition is a strategic decision that will accelerate the company’s three growth pillars — business portfolio, production capacity and global foothold. It will enhance corporate value and shareholder value,” President and Chief Executive Officer (CEO) John Lim said.
Samsung Biologics expects the transaction to expand its capabilities beyond antibody-based therapeutics into peptide technologies and manufacturing expertise.
Peptides represent one of the fastest-growing segments of the biopharmaceutical industry, addressing major medical needs across a range of indications, including obesity, diabetes and oncology.
Through the acquisition, Samsung Biologics said it will gain six production facilities in five countries — Sweden, Belgium, France, India and the United States.
The company currently operates five biopharmaceutical plants in Songdo, west of Seoul, with three additional facilities scheduled for completion by 2032.
Its existing plants have a combined annual production capacity of 784,000 liters, which will increase to 1.324 million liters once the new facilities come online.
This undated file photo, provided by Samsung Biologics Co., shows PolyPeptide Group’s plant in India. (PHOTO NOT FOR SALE) (Yonhap)
kyongae.choi@yna.co.kr
YONHAP NEWS