Samsung Biologics is undertaking a capital increase of 3 trillion won to secure future growth as it aims to become a global top-tier contract development and manufacturing organization (CDMO).
On August 28, Samsung Biologics announced through a board resolution that it will proceed with a capital increase totaling 3 trillion won.
The company explained that the capital increase is intended to fund the acquisition of Polypeptide Group and the expansion of its second bio campus, continuing its strategy of expanding production capacity, portfolio, and geographical presence.
The total amount to be raised is 3.09 trillion won, with a capital increase ratio of 4.904%. This will involve the issuance of 2.27 million shares at a planned issuance price of 1,322,000 won, reflecting a 15% discount.
Of the funds raised, 2.7062 trillion won will be allocated to the acquisition of Polypeptide Group, a global peptide CDMO recently announced, while the remaining 294.8 billion won will be used for facility funding for the second bio campus in Songdo.
In July, Samsung Biologics decided to acquire Polypeptide Group for 1.46 billion Swiss francs (approximately 2.7 trillion won), marking the largest merger and acquisition in the domestic pharmaceutical and biotech industry.
According to Polypeptide Group, the global peptide pharmaceutical market is projected to grow from $94 billion (approximately 130 trillion won) in 2025 to $200 billion (approximately 276 trillion won) by 2031, with an average annual growth rate of 13.4%. This growth is particularly driven by the development and production of peptide-based treatments for obesity and diabetes.
Through this capital increase, Samsung Biologics plans to accelerate its strategy of expanding production capacity, portfolio, and geographical presence. The acquisition of Polypeptide Group is expected to be completed within the year, broadening its business portfolio to include not only existing antibody drugs but also messenger RNA (mRNA) and antibody-drug conjugates (ADCs), as well as the high-growth modality of peptides.
Additionally, the company aims to establish a global development and production network by securing Polypeptide Group's manufacturing facilities in Europe, the United States, and India.
Funds allocated for the acquisition of Polypeptide Group, along with facility funds, will be used for the expansion of the second bio campus. Following the completion of the fifth factory in 2025, Samsung Biologics plans to sequentially complete four additional factories (6 to 8) with a capacity of 180,000 liters each, increasing its global antibody production capacity to 138,500 liters and solidifying its position as the leading CDMO in global production capacity.
Samsung Biologics aims to proactively secure resources for large-scale growth investments through this capital increase while also enhancing its financial flexibility to respond to future investments.
The expected capital increase ratio is around 5%, designed to minimize shareholder value dilution while allowing for substantial investment resource acquisition.
The capital increase will be conducted through a rights offering followed by a public offering for any unsubscribed shares. According to capital market laws, 20% of the newly issued shares will be allocated to the employee stock ownership association, while the remaining shares will be offered to all shareholders based on their ownership percentage.
The anticipated schedule includes the effectiveness of the securities registration statement on September 30, the record date for new share allocation on October 6, subscription for existing shareholders on November 9-10, public offering subscription (if any unsubscribed shares exist) on November 12-13, and listing of new shares on November 30.
John Lim, CEO of Samsung Biologics, stated, "We initiated this capital increase to lay the foundation for our leap to becoming a global top-tier CDMO. We will do our utmost to enhance corporate value by steadily pursuing the expansion of our three pillars: the acquisition of Polypeptide Group and the expansion of the second bio campus."
* This article has been translated by AI.
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