2024-12-12 19:50:13 :
“We have a pioneering strategy when it comes to generic GLP-1. We were the first to the market and today we are the only one offering a complete end-to-end solution,” Sharma told Mint in an interview. company. “GLP-1 drugs such as Danish drugmaker Novo Nordisk’s semaglutide have changed the game for obesity treatment, with demand increasing as multiple GLP-1 drugs go on patent in the coming years. In the current period, OneSource is expected to achieve substantial growth in the field of generic GLP-1 drugs.
OneSource has a strong position in the generic GLP-1 space as they provide end-to-end services, including formulation and assembly into devices. GLP-1 medications are primarily administered via pen. “The most complex part of the entire value chain is assembling the pen,” Sharma said. “We are able to handle many types of pen devices,” he added.
The pharmaceutical device portfolio, such as GLP-1 injection pens, is a business of OneSource Specialty Pharma. The company also has a biologics business, a sterile injectables business, and a soft gelatin capsule business.
Arun Kumar-led Strides Pharma Science has a market capitalization of $The creation of OneSource Specialty Pharma, a specialty pharmaceutical pure play CDMO, was announced in September 2023 at a cost of Rs 6,507 crore, integrating Stelis Biopharma Ltd, Strides’ Oral Technologies (soft gelatin capsules) and SteriScience’s specialty injectables business into one entity. Last month, the company received approval from the National Company Law Tribunal (NCLT).
The company is currently filing an information memorandum this month to obtain the necessary marketing approvals. Sharma said the company plans to go public in the second fortnight of January 2025.
Last month, the company secured $95 million in equity commitments from large investors, valuing its pre-money equity at $1.65 billion.
expansion plan
Sharma said OneSource plans to double its revenue in the next three to four years. The company also plans to increase its Ebitda margin to more than 40% over the same period, from about 34% currently, according to the company’s investor presentation.
It currently has five manufacturing plants, four of which are US FDA approved. Sharma said the company is considering expansion, including onshore facilities in regulated markets. “As a global CDMO we are always looking for opportunities to own other sites and we will continue to look at that,” he said.
The company is also actively expanding capacity at existing facilities based on demand. Its investor presentation highlighted that its biologics business currently has 1,000 liters of microbial production capacity, with plans to expand by 5,000 liters, and has installed mammalian capacity of 4,000 liters, which will be expanded to 20,000 liters.
The company currently produces more than 100 million sterile dosage forms and approximately 2.4 billion capsules annually. The company plans to achieve a sterile injectable and drug device portfolio of over 200 million doses in the next 3-4 years.
The company’s focus going forward is ensuring it has the ability to meet demand growth. “We have proactively invested in capacity expansion ahead of time,” he said. Another area of focus is maintaining its compliance record.
Biologics Pregnancy Business
While the company expects strong near-term growth in its sterile injectables, device drug combinations and soft gel capsules businesses, “biologics will make a small contribution here… because we know biologics will be a big part of that for us beyond 2028.” Make a huge contribution,” Sharma said.
There are also tailwinds like the US Biosecurity Act, which, if passed, would ban US life sciences companies from doing business with some of China’s key biotech majors and push potential business to India. But Sharma points out that there’s more to it than that. “this [larger] The trend is towards supply chain diversification… We saw the ill effects of supply chains being concentrated in one country during the pandemic. “
OneSource’s RFPs have increased significantly over the past two quarters (more than 35 RFPs are in various stages of discussion, according to its investor presentation). However, growth there is slower.
“Few entrepreneurs understand that these businesses have high capital expenditures and long gestation times,” Sharma said, adding that onboarding a biologics customer can take 12 to 24 months. They need to be convinced of your capabilities, and even after that, the entire due diligence process takes a lot of time. It’s very long,” he said.
But biologics is a sticky business, and “once a customer comes in, they’re a customer for life,” Sharma said.
Many of the inquiries OneSource receives are for new projects, as well as businesses seeking second sources outside of China.
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