![]() That's not how you build a CDMO business to last," Catalent's Stamoran said. "CDMOs don't follow a 'build it and they will come' model, based on my 30 years in the industry. Reuters reported in July that quality lapses at Catalent's Brussels factory had caused Wegovy shortages.Įxecutives said the scramble for capacity would not create a surplus. In the meantime, Catalent and Thermo are "in the catbird seat" leading the market due to their existing capabilities, said Barclays analyst Luke Sergott.Ĭatalent shares currently trade at around 42 times expected earnings over the next 12 months, according to LSEG data - more than 28 for Lonza and 21 for Thermo, reflecting its current dominance in the obesity race despite some quality issues. One healthcare investor said CDMOs' ability to boost capacity will determine how fast the obesity drug market grows. Many projects will only complete next year or in some cases in 2026, meaning supply constraints are likely to persist. Injectables are increasingly used in elderly care settings, and some new Alzheimer's and generic arthritis drugs are administered by injection.īut GLP-1s are the leading reason for investments, companies said. Inflation Reduction Act is also boosting development of biologic drugs, some of which are injected. New GLP-1 business could more than offset the loss of COVID-19 vaccine contracts, executives said. That is about twice the pace for tablets or capsules, an industry expert said. ![]() Research firm The Insight Partners predicts the fill-finish market will more than double between 20, to $12.5 billion. Trials of its drug Mounjaro showed higher efficacy than Wegovy. ![]() Lilly is also increasing internal capacity, but for now is using an "extensive portfolio" of CDMOs, a spokesperson said, without naming them. Novo is spending billions to increase its own Wegovy output and plans to add more contract manufacturing sites in addition to three run by Catalent and Thermo.Įven so, shortages will last into next year. Filling syringes is done in sterile conditions to avoid contamination before pens are assembled and packaged, and then shipped by wholesalers to pharmacies and clinics. FROM COVID TO OBESITYīig drugmakers hire CDMOs when they lack in-house expertise or scale. A company spokesperson declined to comment.Īll the companies interviewed by Reuters declined to disclose terms of potential contracts or customers. He said there was a huge shortage of capacity. Since then, about half a dozen projects worth at least $3 billion have been announced by companies including Lonza (LONN.S), Fujifilm Diosynth Biotechnologies, a subsidiary of Fujifilm Corp, and Germany's Vetter.Īnd with Lilly preparing to launch Mounjaro and Novo struggling to meet demand even as it rolls Wegovy out in more markets, the pace is accelerating.Īnother Novo partner, Thermo Fisher (TMO.N) is converting facilities used to fill COVID-19 vaccine syringes to handle pens for obesity and diabetes medicines, CEO Marc Casper told a Morgan Stanley health conference last month. The race for business among contract development and manufacturing organisations (CDMOs) began last year.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |