Daishin Securities Maintains Samsung Biologics Target Price at KRW 2m After Swiss Peptide CDMO Acquisition

Samsung Biologics announced on 20th July that it would acquire PolyPeptide Group (SIX: PPGN), a Swiss contract development and manufacturing organisation (CDMO) specialising in peptide drugs, for approximately KRW 2.7 trillion (roughly $2bn).

PolyPeptide Group brings nearly 70 years of peptide expertise to the deal. The company operates six cGMP-certified (current Good Manufacturing Practice) production facilities across five countries, including the United States, European markets, and India. It has manufactured more than 1,000 peptide drug products and holds positions in roughly one-third of all peptide candidates currently in global Phase III clinical trials.

The Swiss company reported revenues of €389m for 2025. Its exposure to metabolic diseases has expanded sharply, rising from 22% of revenue in 2021 to 57% in 2025. Management has guided for revenue growth of 20–25% in 2026, with EBITDA margins in the mid-to-high teens.

For Samsung Biologics — part of the Samsung chaebol and one of the world's largest biologics CDMOs by capacity — the acquisition represents a meaningful diversification of its manufacturing capabilities. The company has until now focused primarily on large-molecule antibody-based biologics. The deal gives it immediate entry into the fast-growing peptide segment, driven by surging demand for GLP-1-based obesity and metabolic disease treatments, bypassing the years it would have taken to build equivalent capacity organically.

A formal tender offer is expected to launch in September and run for approximately two months. The likelihood of completion is considered high, given that the largest shareholder has already committed to tendering its shares. Samsung Biologics is aiming to close the transaction before the end of the year.

Analysts nonetheless flag some financial caution. The acquisition coincides with substantial existing capital expenditure commitments, including construction of a sixth manufacturing plant and a third campus at its Songdo, Incheon base, raising the possibility of additional borrowing.

Daishin Securities has maintained its Buy rating and target price of KRW 2m per share on Samsung Biologics. The brokerage has not yet incorporated the acquisition into its valuation, citing the need for greater clarity on integration synergies before doing so.