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South Korea’s Samsung Biologics announced on Monday that it had made an all-cash bid of 1.46 billion Swiss francs ($1.8 billion) for Switzerland’s Biologics. polypeptide groupspecializes in peptide-based pharmaceutical active ingredients.
Under the terms of the tender offer, shareholders will receive CHF 44.31 per share. The transaction is expected to close by the end of this year.
Polypeptide stock rose about 5.3% in morning trading.
According to Samsung Biologics, the acquisition is the largest biopharmaceutical M&A transaction in the country’s history and aims to diversify its portfolio by expanding into peptide therapeutics, one of the fastest growing areas in the biopharmaceutical industry due to soaring demand for obesity treatment.
Peptide therapeutics are drugs made from short chains of amino acids, such as some GLP-1 obesity and diabetes drugs, which mimic natural hormones to suppress appetite and regulate blood sugar levels.
“After a comprehensive review of strategic options, the Board of Directors believes that Samsung Biologics’ offer is attractive to our stockholders and provides an attractive cash price and immediate and tangible value today,” said Polypeptide Chairman Peter Wilden.
Samsung Biologics said the acquisition expands its existing product range centered on antibody drugs and antibody-drug conjugates. The company also seeks to meet growing customer demand across a broader range of therapies, advancing peptide-based GLP-1 therapies for obesity and diabetes.
The agreement will also expand Samsung Biologics’ global footprint by securing a global network that includes polypeptide R&D, development, and commercial production capabilities across Sweden, Belgium, France, the United States, and India.
The Polypeptide Group, headquartered in Baar, Switzerland, was founded in 1996 as a spin-off from the global pharmaceutical company Ferring and has a track record of developing and producing over 1,000 therapeutic peptides.
Samsung Biologics closed 3.65% lower on Monday, widening its earlier losses.
