LONDON
— Thousands of delegates flooded into the narrow corridors of the Waldorf Hilton this week to attend the Jefferies London Healthcare Conference. It was so busy that at one point, security had to implement a one-in, one-out system, much to the dismay of attendees who had meetings in neighboring buildings.
Endpoints News
attended presentations at the confab by companies with manufacturing services and also met some execs to get a sense of what’s hot in the drug production industry. And, in the backdrop of the pending Novo-Catalent deal, if there was one word on manufacturers’ lips,
it was GLP-1s
.
Ypsomed looks to triple capacity by 2030:
The drug delivery company is planning for global expansion, CFO Samuel Künzli told Endpoints on the sidelines of the conference. The Swiss-based packaging manufacturer is looking to build its presence in the US, Germany and China, Künzli said. Among many other companies, Ypsomed works with Novo Nordisk to package its blockbuster GLP-1 drugs.
The expansion will help Ypsomed develop local supply chains, which is the current trend for manufacturers, Künzli said. Despite concerns over potential tariffs under the incoming Trump administration, injectables and packaging appliances are a fraction of the cost of a drug and shouldn’t impact manufacturers like Yposmed, he added.
“Bulging” demand for injectable CDMOs:
In a lackluster biotech funding environment impacting most CDMOs, manufacturers with fill-finish abilities for GLP-1s are unsurprisingly fielding many inquiries. OneSource, a newly-launched injectable manufacturer, is already “bulging at the seams” with orders from such customers with injectable assets, with its capacity being fully booked, CEO Neeraj Sharma told Endpoints. OneSource has drug-device combination services as well as biologics, soft gel and injectable production abilities.
Similarly, National Resilience is raking in from its GLP-1 manufacturing. CEO Rahul Singhvi told delegates it is expecting a 30% year-on-year increase in overall revenue growth for the next several years.
Meanwhile, biosimilar manufacturing is constrained:
Biosimilar biotech Alvotech is sounding the alarm that there is an industry shortage of biosimilar CDMOs. In that vein, CEO Róbert Wessman said during its company presentation Tuesday that other similar biotechs should bolster their in-house manufacturing. But it’s not straightforward — not only does it take around six to seven years to develop a biosimilar product, but relevant factories also have to be built, he added.
Charles River’s “business is in good shape for the future,”
CFO Flavia Pease told delegates at Jefferies. The manufacturer’s CDMO solutions business now has three commercial stage projects, said Pease. Further, around 50% of its manufacturing clients are also using its biologics testing capabilities, which brings in further revenue, she added.
While Charles River anticipates the slow biotech funding to gradually improve, it will still continue to put pressure on its outlook for the next quarters, she added. “It’s been a little bit of a bumpy road, if you will, but I think that business is in good shape for the future.”