Samsung Biologics is purchasing a Swiss company that specializes in peptides, a contract development and manufacturing organization (CDMO), for 2.7 trillion South Korean won, broadening its operations from antibody-based medications to peptides—essential components in treatments for obesity and diabetes—and stepping into the fast-expanding market for obesity drugs.

Samsung Bio announced on the 20th that it has entered into an agreement to purchase the Swiss PolyPeptide Group for 1.46 billion Swiss francs (around 2.7 trillion South Korean won). The company intends to obtain full control by acquiring shares from major shareholders and conducting a public tender offer, aiming to complete the acquisition by the end of this year. A company representative said, “This is the biggest merger and acquisition (M&A) in South Korea’s pharmaceutical and biotech sector.”

Peptides are small molecules made up of 2 to 50 amino acids, forming part of proteins. They help in conveying hormones or signals between cells in the body. Examples of artificial drugs derived from peptides include GLP-1-based medications for obesity and diabetes, like Wegovy and Mounjaro. In recent times, their use has broadened to include cancer treatments, immune-related therapies, rare disease management, and solutions for brain disorders.

Founded in 1996, the PolyPeptide Group is a specialized CDMO that manages the development of peptide drug candidates, from process design through to commercial manufacturing. It has gained more than 1,000 instances of development and production experience. The company runs six production and research facilities in five countries—Sweden, Belgium, France, the U.S., and India—with a workforce of around 1,500 employees. Its main area of operation is in treatments for metabolic diseases, including GLP-1.

By acquiring this company, Samsung Bio will take over production facilities, technology, experienced staff, and the PolyPeptide Group’s current customer list and agreements. This offers a solid starting point to drive revenue in the peptide sector. Utilizing manufacturing centers in the U.S., Europe, and India, the company also plans to strengthen relationships with international pharmaceutical companies.

Samsung Bio has previously broadened its operations from antibody drugs to messenger ribonucleic acid (mRNA) and antibody-drug conjugates (ADCs). Incorporating peptides enables the company to produce both antibody drugs and obesity treatment components at the same time. It aims to explore collaborative manufacturing opportunities for pharmaceutical companies working on both antibody and peptide therapies.

Peptide medications involve intricate manufacturing procedures and careful control to eliminate contaminants. Samsung Bio will integrate its expertise in building and managing large antibody production plants with the PolyPeptide Group’s synthesis techniques. It will also explore increasing local manufacturing capabilities according to market needs.

Samsung Biologics CEO John Rim said, “This strategic move includes the three key areas of growth: manufacturing capacity, business range, and international centers. By combining the strengths of both companies, we aim to enhance our position in the global CDMO industry.”

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