Samsung Biologics Seeks to Reshape Global CDMO Market With 3 Trillion Won Rights Offering

Samsung Biologics has approved a rights offering worth approximately 3.0094 trillion won. About 90% of the proceeds, or 2.7061 trillion won, will be used to acquire Swiss peptide contract development and manufacturing organization (CDMO) PolyPeptide Group. The acquisition is valued at 1.46 billion Swiss francs, an unusually large transaction for a single overseas M&A deal by a South Korean biotech company.

Samsung Biologics announced that its board approved the rights offering on the 28th, issuing 2.27 million common shares through a shareholder allocation followed by a general offering of unsubscribed shares. The indicative issue price is 1.322 million won per share, reflecting a 15% discount. Before the offering, the total number of issued shares, based on common shares, was 462,909; the new shares will represent approximately 4.9% of the existing shares.

Why acquire PolyPeptide Group now?

PolyPeptide Group is a global peptide CDMO with manufacturing facilities in Europe, the United States and India. Samsung Biologics has operated a portfolio focused primarily on antibody drugs, mRNA and ADCs (antibody-drug conjugates), but the acquisition will give it a full-scale entry into the peptide drug market. As global demand for GLP-1 obesity and diabetes treatments rises explosively and shortages of peptide active pharmaceutical ingredients persist, the timing of the acquisition aligns with market demand.

The remaining 294.7 billion won in proceeds will be used to expand the second Bio Campus in Songdo, Incheon. The company plans to complete four 180,000-liter plants sequentially, increasing total antibody drug manufacturing capacity to 1.385 million liters. The structure advances three objectives simultaneously: expanding manufacturing capacity, diversifying the portfolio and securing global production hubs.

Shareholder-value dilution vs. long-term growth potential

Shares plunged 6% to 7% intraday immediately after the rights offering was announced. The decline reflected immediate concerns about dilution from the issuance of new shares. However, analysts are focusing on the fact that 100% of the proceeds will be invested in future growth drivers rather than used to repay debt or otherwise improve the company’s financial structure. Analysts say securing PolyPeptide Group’s U.S. and European production sites could improve Samsung Biologics’ geographic access to global big pharma customers and strengthen its competitiveness in winning contracts.

In particular, securing production sites in Western countries ahead of broader changes in global supply chains, including efforts to advance the U.S. Biosecure Act, is viewed as a factor that could give Samsung Biologics an advantage in contract competition over rivals in China and elsewhere. Industry experts believe the current environment, in which global big pharma companies are actively seeking non-China CDMO partners to diversify supply-chain risks, could work in Samsung Biologics’ favor.

Subscription schedule and new-share listing structure

The record date for new-share allocation is Oct. 6, and the number of new shares allocated per share is 0.0392737657. A total of 454,000 shares, or 20% of the planned issuance, will be preferentially allocated to the employee stock ownership association. Existing shareholders may subscribe from Nov. 9 to 10, with an oversubscription ratio of 0.2 shares for each allocated new share. The general offering of unsubscribed shares will take place from Nov. 12 to 13. Of the general-offering shares, 5% will be allocated to high-risk, high-return investment trusts, while the remaining 95% will be allocated without distinction between individual subscribers and institutional investors.

The payment date is Nov. 17, and the scheduled listing date for the new shares is Nov. 30. The dividend record date for the new shares will be retroactively applied as Jan. 1, 2026. The final issue price will be set at the lower of the first and second issue prices. However, if that price is lower than the price calculated by applying a 40% discount to the weighted arithmetic average share price from the fifth to the third trading day before the subscription date, the latter price will become the final issue price. The lead managers are Shinhan Securities, NH Investment & Securities, Korea Investment & Securities and KB Securities. The short-selling ban will run from Aug. 31 to Nov. 4.