[Edaily Marketin LEE GEON-EOM Reporter] Domestic credit rating agencies assessed that Samsung Biologics’ ( SAMSUNG BIOLOGICS(207940)) acquisition of the Swiss pharmaceutical company “PolyPeptide Group AG” is positive in terms of diversifying its business portfolio, but that an increase in debt burden due to the large capital outlay is inevitable. However, they predicted that the impact on the company’s creditworthiness would be limited, given its strong cash generation capabilities.

Korea Credit Rating Agency and NICE Credit Rating (NICEHoldings) made these remarks on the 21st in a commentary document regarding SAMSUNG BIOLOGICS’ acquisition of the Swiss pharmaceutical company “PolyPeptide Group.”

Korea Credit Rating and NICE Credit Rating identified the following as key monitoring points for SAMSUNG BIOLOGICS: △regulatory approval procedures for the tender offer and the final acquisition size; △the extent of increased debt burden resulting from financing the acquisition; △the scale of large-scale follow-up investments, such as the Second Bio Campus; and △whether synergies from the new business will materialize.

On the 20th, SAMSUNG BIOLOGICS’ board of directors decided to acquire 100% of the shares in Polypeptide Group, a peptide contract development and manufacturing organization (CDMO), for approximately 2.7062 trillion won (about 1.46 billion Swiss francs).

The deal is contingent on securing at least a 66.7% stake through a tender offer, with the scheduled completion date set for November 30. Headquartered in Switzerland, Polypeptide Group operates production facilities in Europe, the United States, and India, and is showing signs of a recovery in performance, driven by growing demand for GLP-1-class drugs—which are currently gaining attention as treatments for obesity and diabetes.

Kim Soo-min, a senior researcher at Hanshin Rating, stated, “Through this acquisition, the company will expand its business portfolio from its existing structure centered on antibody drugs and mRNA into the peptide drug sector, where strong demand growth is expected.” She added, “By securing production bases in key regions such as Europe, the U.S., and India, and by taking over existing CDMO contracts, the company is expected to secure a stable order base immediately following the acquisition.”

Alleviating the financial burden caused by large-scale cash outflows remains a challenge to be addressed. SAMSUNG BIOLOGICS plans to pay the acquisition price of approximately 2.7 trillion won using cash on hand and debt financing. Given that large-scale facility investments, such as the expansion of Bio Campus Phase 2 (Plants 5–8), are scheduled, an increase in debt burden in the short to medium term appears inevitable.

However, credit rating agencies forecast that SAMSUNG BIOLOGICS’ overwhelming profit-generating capacity will alleviate this financial burden.

Kwon Jun-sung, a senior researcher at NICE Credit Rating, stated “While an increase in financial burden due to this tender offer is unavoidable given the planned large-scale facility investments, the impact on creditworthiness will be limited, considering the company’s strong ability to generate annual EBITDA of over 2 trillion won and its sound financial structure.” He added, “We plan to closely review the actual funding requirements based on the final tender offer results, the financing structure for the acquisition, and the resulting changes in financial stability, and reflect these in our credit rating assessment.”