Daishin Securities stated that the acquisition of Swiss peptide contract development and manufacturing organization (CDMO) Polypeptide Group by Samsung Biologics is a positive move for its long-term growth strategy. The firm maintained its target price at 2 million won and its investment rating at 'buy.'
Hong Ga-hye, a researcher at Daishin Securities, commented, "This acquisition is a positive event that aligns with the long-term growth strategy by expanding from a focus on antibody-based CDMO to peptides and securing production bases in the U.S., Europe, and India."
Samsung Biologics announced on July 20 that it would acquire Polypeptide Group for approximately 2.7 trillion won. Daishin Securities analyzed that the acquisition allows immediate entry into the expanding peptide market driven by the growth of GLP-1-based obesity treatments, thereby shortening the market entry timeline compared to organic expansion.
Polypeptide Group is a peptide-specialized CDMO with nearly 70 years of experience, operating six production sites across five countries, including the U.S., Europe, and India. The company has produced over 1,000 peptide drugs and holds about one-third of the global Phase 3 peptide pipeline. Last year, it reported revenues of 389 million euros, with the share of revenue from metabolic diseases increasing from 22% in 2021 to 57% last year.
Hong noted, "By entering the high-growth GLP-1 market immediately and inheriting existing production facilities and customer bases, revenue contributions can begin right after the acquisition. We also expect long-term profitability improvements through cross-ordering leveraging the global customer base and operational efficiencies."
However, he cautioned that the integration process following the transaction will need to be monitored. He added, "Considering the large-scale capital expenditures (CAPEX) for the sixth plant and the Songdo third campus investment, there is a possibility of additional borrowing. Future confirmation of the transaction's closure and funding methods will be necessary."
* This article has been translated by AI.
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