Samsung Biologics, a South Korean biotechnology company, announced the acquisition of Swiss pharmaceutical company, PolyPeptide Group AG, in a cash transaction worth approximately US$1.8 billion (around RM7.7 billion).
The move is expected to further strengthen Samsung's position in the drug development and manufacturing industry for pharmaceutical companies worldwide.
Through the agreement, Samsung offered 44.31 Swiss francs per share to PolyPeptide shareholders.
The offer price is about 6.1% higher than the company's closing price last Friday.
In fact, it is also about 40% higher than the share price before rumors of a possible acquisition of the company arose.
PolyPeptide is one of the leading producers of peptide-based active ingredients, which are molecules used in the production of various modern medicines.
The company has production facilities in Sweden, Belgium, France, the United States and India.
In addition to conducting research and development (R&D), PolyPeptide also provides process development services and drug production on a commercial scale.
The acquisition is expected to be a major advantage for Samsung Biologics as demand for peptide-based drugs is increasing worldwide.
These drugs are widely used in the treatment of obesity, diabetes, metabolic disorders and several other chronic diseases.
The popularity of weight loss drugs in recent years has also driven an increase in demand for peptide production capacity.
With PolyPeptide's expertise and facilities, Samsung Biologics will be able to offer a more complete range of services to global pharmaceutical companies.
The move is also expected to help the company meet increasing customer demand and strengthen its position as a major player in the contract drug development and manufacturing (CDMO) industry.
The transaction is expected to be finalized by the end of 2026, subject to regulatory approvals and customary conditions for an acquisition.
PolyPeptide's board of directors also unanimously recommended that shareholders accept the offer, thus demonstrating confidence that this collaboration can bring benefits to both companies in the long term.
