[Edaily Reporter Kim Jinsoo ] SAMSUNG BIOLOGICS(207940)has signed the largest merger and acquisition (M&A) deal in South Korea’s pharmaceutical and biotech industry to produce peptide drugs, which are well known as ingredients in obesity and diabetes treatments. Analysts say the company has made a bold investment not only to solidify its position as the “global leader” in contract development and manufacturing (CDMO) but also to enter the 43 trillion won peptide market.

On the 20th, SAMSUNG BIOLOGICS signed an agreement to acquire PolyPeptide Group for 2.7 trillion won. With this move, SAMSUNG BIOLOGICS is making a full-scale entry into the peptide pharmaceuticals sector—which is expected to reach 43 trillion won—and is poised to ramp up its CDMO operations for obesity and diabetes treatments, a field that has become a major trend.

Until now, the largest merger and acquisition (M&A) deal in the domestic pharmaceutical and biotech industry was the 2022 acquisition of U.S.-based Meridian Bioscience by diagnostic firm SD Biosensor for $1.53 billion (2.26 trillion won). This was followed by MBK Partners’ acquisition of Geo-Young (1.95 trillion won), among others; however, the scale of SAMSUNG BIOLOGICS’ acquisition of the Polypeptide Group far surpasses these deals, clearly demonstrating the company’s strong commitment to expanding its portfolio.

The Polypeptide Group is a peptide CDMO specialist that spun off from the peptide production division of global pharmaceutical company Ferring in 1996 and is headquartered in Baar, Switzerland. With a track record of over 1,000 peptide therapeutic development and production projects, it is recognized as a global leader with industry-leading capabilities in developing production processes for new peptide drug candidates.

In particular, the company has developed manufacturing technology that can dramatically reduce the use of organic solvents—liquid raw materials required for peptide production. This technology not only reduces raw material costs and improves production efficiency but also minimizes waste generation, enabling an environmentally friendly manufacturing process.

Through this agreement, SAMSUNG BIOLOGICS will simultaneously secure the Polypeptide Group’s peptide drug production facilities, technology, and skilled workforce. It is also expected to serve as an opportunity to strengthen its geographic presence in key markets such as Europe, the United States, and India. In fact, the Polypeptide Group currently operates six production sites and research and development (R&D) centers across five countries, including Europe, the United States, and India, and employs a workforce of approximately 1,500 skilled professionals.

SAMSUNG BIOLOGICS has eliminated any gap in orders by taking over the CDMO contracts currently being executed by the Polypeptide Group. SAMSUNG BIOLOGICS plans to maximize business synergies by combining its accumulated expertise in the design and operation of large-scale production facilities with the Polypeptide Group’s peptide development and production technologies. The company also intends to explore expanding its production facilities in line with future growth in the peptide market to respond promptly to customer demand.

High Expectations for Contract Manufacturing of Obesity Treatments, the “Trend of Trends”

Currently, more than 170 peptide drugs are in clinical development worldwide, and more than 80 have been successfully commercialized. As pipelines and indications diversify in this way, the demand for specialized manufacturing is rising across the entire process—from early-stage development to commercial production.

Peptide drugs involve complex synthesis processes and require sophisticated process control and strict GMP quality management. In particular, since securing large-scale production capacity and a stable supply chain is essential during the commercialization phase, development companies are increasingly relying on specialized CDMOs. In fact, due to the high technical barriers in the manufacturing process, it is reported that approximately 62–64% of peptide developers utilize specialized CDMOs.

According to Business Research Insights, driven by this growing demand for outsourcing, the global peptide CDMO market is projected to grow at a compound annual growth rate (CAGR) of 20.3%, expanding from $5.52 billion (approximately 8 trillion won) in 2026 to $29.14 billion (approximately 43 trillion won) by 2035.

In particular, among peptide-based pharmaceuticals, obesity treatments are attracting the most attention worldwide. According to analyses by global investment banks (IBs) and others, the global obesity treatment market is expected to reach up to $150 billion (approximately 200 trillion won) by 2035, driven by surging international demand and the expansion of treatment indications.

As this represents the most notable market growth potential among treatments for a single disease, demand for peptide-based therapeutics—the key raw material—is also expected to rise accordingly.

Accelerating Growth Based on the “Three Pillars”

Through this acquisition, SAMSUNG BIOLOGICS plans to accelerate its “Three-Pillar Expansion Strategy”—comprising “production capacity,” “business portfolio,” and “global hubs”—and establish a foundation for long-term growth in the global peptide CDMO market.

Following the acquisition of messenger RNA (mRNA) production capabilities in 2021, SAMSUNG BIOLOGICS began operating a dedicated production facility for antibody-drug conjugates (ADCs) last year and launched the “Samsung Organoid” service. With the acquisition of the Polypeptide Group, the company is accelerating the diversification of its portfolio by expanding its capabilities to include peptide-based production.

SAMSUNG BIOLOGICS plans to establish a network of global hubs to enhance accessibility to pharmaceutical and biotech companies worldwide. Specifically, the company intends to link its hubs in Malmö, Sweden; Braine, Belgium; Ambernat, India; Torrance and San Diego, U.S.; and Strasbourg, France—along with its existing production facility in Rockville, U.S.—to improve access to multinational pharmaceutical companies and respond flexibly to regional supply chain changes. In addition to its currently operating facilities in New Jersey and Boston, U.S., and Tokyo, Japan, the company plans to expand its customer reach by opening a new sales office in the Netherlands in the third quarter of this year.

In addition, SAMSUNG BIOLOGICS secured a site last December for its third biocampus, which it plans to develop as a production hub for next-generation modalities, and is considering the construction of production facilities for high-value-added new modalities, including peptides, cell and gene therapies (CGT), and next-generation vaccines.

SAMSUNG BIOLOGICS currently has a total antibody drug production capacity of 845,000 liters, comprising 785,000 liters at Plants 1–5 in Songdo and 60,000 liters at its Rockville, U.S., production facility, and and plans to expand this capacity to a total of 1,385,000 liters by 2032 through the construction of Plants 6, 7, and 8 at its second biocampus.

John Lim, CEO of SAMSUNG BIOLOGICS, said, “As many global pharmaceutical companies are developing both antibody drugs and peptide therapeutics, opportunities for cross-order business are expected to expand,” adding, “Customers will be able to enhance partner management efficiency and supply chain stability by utilizing both antibody and peptide services through a single CDMO partner.”