Samsung Biologics has made a bid valued at 1.46 billion Swiss francs (approximately $1.8 billion) to acquire the Swiss company Peptide Group.

This strategic move is designed to expand the company's peptide drug portfolio, positioning it to capitalize on the rapidly growing market for weight-loss medications.

The Korean biopharmaceutical firm anticipates finalizing the transaction before the end of the current year.

Samsung Biologics announced on Monday that it has launched an all-cash tender offer for the Swiss Peptide Group, with a proposed transaction value of 1.46 billion Swiss francs (around $1.8 billion). Peptide Group specializes in the production of active pharmaceutical ingredients for peptide-based drugs.

Under the terms of the public tender offer, shareholders would receive 44.31 Swiss francs per share, with the deal expected to close by the end of 2026.

Following the announcement, Peptide Group's stock price surged by nearly 5.3% in early trading.

Samsung Biologics stated that this acquisition represents the largest biopharmaceutical merger and acquisition transaction in South Korea's history. The company aims to enter the peptide drug sector to diversify its product offerings. With surging demand for weight-loss drugs, peptide therapies are among the fastest-growing segments within the biopharmaceutical industry.

Peptide drugs are synthesized from short chains of amino acids and include several GLP-1 class medications for weight loss and blood sugar control. These drugs mimic the body's natural hormones to suppress appetite and regulate glucose levels.

Peter Wilden, Chairman of Peptide Group, commented, "After a comprehensive evaluation of all strategic options, the Board believes Samsung Biologics' offer is highly attractive to shareholders. This substantial cash proposal allows shareholders to secure a stable return immediately."

Samsung Biologics' current business primarily focuses on antibody drugs and antibody-drug conjugates. The acquisition of Peptide Group will broaden its service categories. The GLP-1 peptide market for weight management and diabetes is currently highly active, with increasing client demand for diverse therapeutic modalities. Acquiring Peptide Group will enable Samsung to meet this market demand.

Furthermore, the transaction will bolster Samsung Biologics' global footprint by integrating Peptide Group's worldwide network of facilities across Sweden, Belgium, France, the United States, and India, along with its complete capabilities in research, clinical development, and commercial-scale manufacturing.

Headquartered in Bär, Switzerland, Peptide Group was spun off from the pharmaceutical company Ferring Group in 1996 and has since developed and produced over a thousand therapeutic peptide products.

Shares of Samsung Biologics closed down 3.65% on Monday, continuing a recent downward trend.