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India's contract development and manufacturing organisations (CDMOs) are rapidly expanding capacity to meet rising demand for GLP-1 drugs

ICICIdirect Research 29 Jun 2026 DISCLAIMER

News: According to media sources, India's contract development and manufacturing organisations (CDMOs) are rapidly expanding capacity to meet rising demand for GLP-1 drugs such as semaglutide following patent expiries. However, industry executives said supply bottlenecks in peptide APIs, sterile fill-finish facilities, injector devices and cartridges are likely to persist for at least the next two years, with regulatory approvals emerging as an additional constraint. New peptide synthesis and sterile manufacturing facilities typically require 18-24 months to commission, followed by 3-6 months for validation and regulatory qualification before commercial production. Companies are also witnessing strong export enquiries from Africa, West Asia and Latin America, while supplies to regulated markets remain constrained by DMF approvals despite capacity additions

View: This is an altogether different narrative about Semaglutide market dynamics, as against the prevailing one that the market is cooling off. We believe the needle is still moving and it's too early to take a call as the demand is expected not only from different geographies but also from different therapies. Our analysis suggests that DRL has the B2B capabilities in India besides MSN Pharma (not listed), the rest being Chinese suppliers. We will keep a tab on the development

Impact: Neutral

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