India-based CDMO, OneSource Specialty Pharma, is expanding its capacity to manufacture GLP-1 drug-device combinations, driven by growing global demand for diabetes and obesity treatments. The company, which specializes in drug-device combinations, including cartridge filling, assembly, and fill-finish, recently raised funding through equity issuance to fund this expansion.

Formed in September 2023 through the integration of Stelis Biologics' CDMO, SteriScience’s injectables, and Strides’ soft gelatine businesses, OneSource has also tripled its soft gelatine capsule production capacity, further positioning itself as a leader in the GLP-1 manufacturing space.

The following article originally appeared in Business Standard.

Contract Development and Manufacturing Organisation (CDMO) OneSource Specialty Pharma is looking to expand its capacity to manufacture glucagon-like peptide-1 (GLP-1) drug-device combinations as the demand for this new class of diabetes and obesity drugs rises globally.

“One of our key service offerings is around drug-device combinations, especially in the generic GLP space, and we already have significant capacity in terms of cartridge and fill-finish, as well as full assembly of GLP-1 devices,” said Neeraj Sharma, managing director and chief executive officer (CEO), OneSource Specialty Pharma.

OneSource Specialty Pharma recently raised Rs 801 crore through equity issuance.

The company is proactively expanding its capacity for drug-device combinations and cartridge filling assembly, which will take up most of the capital expenditure investment. “A significant part of the funds raised would be used towards this,” Sharma added. No further fund-raising is planned. He clarified that the listing is a direct listing and not an initial public offering. “We are not anticipating any further fund-raising anytime soon,” he said.

OneSource has clients in America, Europe, the Middle East, Africa, and India, all looking at GLP-1 opportunities. The market for these drugs is slated to touch $100-130 billion in the next few years, driven by rising demand for diabetes and obesity treatments.

A few weeks ago, asset management firm 360 ONE Asset invested in OneSource Specialty by acquiring a stake from an existing investor for an undisclosed amount. Market sources have pegged the deal at around $200 million.

Strides Pharma Science announced on Wednesday that it plans to list OneSource Specialty Pharma shares on stock exchanges in the fourth quarter of FY25. The company is in the process of submitting its Information Memorandum in December 2024 to secure the required listing approval.

Last September, Strides created OneSource—a specialty pharma pure-play CDMO—by integrating Stelis Biologics' CDMO, SteriScience’s complex injectables, and Strides’ soft gelatine businesses into a single entity.

OneSource has also recently increased its soft gelatine capsule manufacturing capacity threefold.

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