Key Takeaways
- Samsung Biologics will acquire Swiss contract drugmaker PolyPeptide in a $1.8 billion all-cash deal.
- The takeover aims to expand Samsung’s capabilities in peptide-based therapeutics, including obesity and diabetes treatments.
- PolyPeptide's board has unanimously recommended shareholders accept the offer.
Samsung Biologics is set to launch a $1.8 billion all-cash bid for Swiss contract drugmaker PolyPeptide, according to separate statements from both companies. The tender offer will be launched by the end of August and expected to close by year-end.
The acquisition represents a premium of about 6.1% over PolyPeptide’s last closing price of 41.75 Swiss francs on Friday, as calculated by Reuters. At 44.31 Swiss francs per share, the offer aims to expand Samsung Biologics' presence in peptide-based therapeutics, including fast-growing obesity and diabetes treatments such as GLP-1 drugs.
PolyPeptide’s board has unanimously recommended shareholders accept the offer, with its largest individual shareholder, Draupnir Holding, supporting the deal. Draupnir owns about 55.65% of PolyPeptide and will tender all of its shares into the offer.
Following the completion of the deal, Samsung Biologics plans to pursue a squeeze-out of any remaining minority shares and delist PolyPeptide from the SIX Swiss Exchange, making it a wholly owned unit of the company.
In April, Draupnir Holding announced that it was conducting a review of strategic options with regard to its majority stake in PolyPeptide. The Cryosphere Foundation, which has links to Swedish billionaire Frederik Paulsen, owns the parent entity of Draupnir Holding.
Samsung Biologics aims to leverage this acquisition to strengthen its position in the global pharmaceutical market and capitalize on the growing demand for peptide-based treatments. The company believes that PolyPeptide’s expertise will complement its existing capabilities, particularly in obesity and diabetes therapies.
The deal is expected to have significant implications for both companies, with potential impacts on employment and operations. Samsung Biologics has already announced plans to cut US jobs and offer relocations ahead of the move of its headquarters.
