Samsung Biologics announced an equity offering to raise 3 trillion South Korean won, equivalent to approximately $2.27 billion, to primarily fund its acquisition of PolyPeptide Group AG. This offering involves issuing 2.27 million new shares, representing 4.9% of its existing shares, at a price of 1,322,000 won per share. The share subscriptions are slated for November 9–10, with the new shares targeted for listing on November 30.
The majority of the proceeds, approximately 2.71 trillion won ($2.05 billion), will be allocated to the PolyPeptide acquisition. The remaining 290 billion won ($220 million) will be used for the expansion of Bio Campus II. The acquisition of PolyPeptide Group is valued at 1.46 billion Swiss francs, or about $1.8 billion (2.71 trillion won), making it the largest pharmaceutical and biotech merger and acquisition deal in South Korea's history. Samsung Biologics aims to finalize this acquisition by the end of December.
This strategic move will expand Samsung Biologics' capabilities beyond antibodies and antibody-drug conjugates (ADCs) into peptide-based therapeutics. PolyPeptide Group specializes in peptide-based active pharmaceutical ingredients (APIs), including those used in rapidly growing treatments for obesity and diabetes. The acquisition is expected to broaden Samsung Biologics' service portfolio and enhance its geographic presence in the US, Europe, and India, leveraging PolyPeptide's over 70 years of API manufacturing heritage.
