Samsung Biologics Bets on Peptides with Trillion-Won Rights Offering

Samsung Biologics is undertaking a massive paid-in capital increase of 3 trillion won (about $2.17 billion) to acquire Swiss biotech company PolyPeptide Group, a leading contract development and manufacturing organization (CDMO) specializing in peptide production. With this deal, Samsung Biologics aims to dominate the peptide market, which is rapidly growing due to increased demand for GLP-1 diabetes and obesity treatments.

The capital increase, announced on August 28, involves issuing 2.27 million new common shares, generating 3.0009 trillion won in funds. Of this total, 2.7062 trillion won will be used to acquire PolyPeptide Group for 1.46 billion Swiss francs (about $2.07 billion). The remaining 294.8 billion won will be used for expanding production infrastructure at Samsung Biologics' Second Bio Campus in Songdo, Incheon.

PolyPeptide Group, valued at 1.46 billion Swiss francs, will bolster Samsung Biologics' global peptide drug production capabilities, complementing its existing expertise in monoclonal antibodies, messenger ribonucleic acid (mRNA), and antibody-drug conjugates (ADC). Once completed, Samsung Biologics plans to secure over 1.385 million liters of production capacity by 2032, positioning itself as the world's top super-gap CDMO.

While the stock market initially reacted negatively to the news, Samsung Biologics' strong financial performance in 2026 (28.0% and 28.6% year-on-year revenue growth, and a 35.3% increase in net income) has helped restore market confidence. The company's paid-in capital increase, backed by solid internal fundamentals, is expected to minimize the burden on existing shareholders.