India's Granules Acquires Swiss CDMO Senn Chemicals, Enters Peptide Therapeutics Market

In a strategic move to expand its presence in the rapidly growing peptide therapeutics sector, India-based Granules has announced the acquisition of Swiss contract development and manufacturing organization (CDMO) Senn Chemicals. The deal, valued at 20 million Swiss francs ($22.3 million), is expected to close in the first half of 2025, positioning Granules to capitalize on the booming market for peptide-based drugs, particularly those targeting diabetes and obesity.

Acquisition Details and Strategic Rationale

Granules' acquisition of Senn Chemicals provides the Indian pharmaceutical manufacturer with immediate entry into the peptide therapeutics market. Senn Chemicals brings expertise in both liquid-phase peptide synthesis (LPPS) and solid-phase peptide synthesis (SPPS), critical technologies for producing peptide-based active pharmaceutical ingredients (APIs).

Krishna Prasad Chigurupati, Chair and Managing Director of Granules, emphasized the strategic importance of the acquisition, stating, "By entering the rapidly growing peptide therapeutics segment and acquiring CDMO capabilities, we are expanding into next-generation therapeutics that align with our commitment to innovation and affordability."

The move is particularly timely given the recent surge in demand for GLP-1 drugs, a class of peptide-based therapeutics that have shown remarkable efficacy in treating diabetes and obesity. Novo Nordisk and Eli Lilly have been at the forefront of this trend, with their GLP-1 medications driving significant growth in the market.

Existing Collaboration and Future Plans

Prior to the acquisition, Granules and Senn Chemicals had already established a working relationship, collaborating on the development of two GLP-1-based APIs. This existing partnership likely facilitated the acquisition and sets the stage for continued innovation in peptide-based therapeutics.

With Senn Chemicals' R&D capabilities now under its umbrella, Granules plans to expand its portfolio of peptide-based APIs. The company aims to leverage Senn's established client base and CDMO business to accelerate its growth in this sector.

Industry-wide Expansion in Peptide Manufacturing

Granules' acquisition of Senn Chemicals is part of a broader trend of increased investment in peptide manufacturing capabilities across the pharmaceutical industry. Several other companies have recently announced significant expansions in this area:

• German CDMO Axplora unveiled a 50-million-euro upgrade to its facility in Mourenx, France, aimed at enhancing peptide purification capabilities and supporting the development of new biologic therapies, including GLP-1 drugs.

• BioDuro, a research and CDMO group, opened a new peptide synthesis production facility in Shanghai's Zhangjiang tech center.

• South Korean CDMO SK pharmteco announced a $260 million investment to expand its small-molecule and peptide manufacturing capacity, with plans for a fifth facility in South Korea.

These developments underscore the growing importance of peptide-based therapeutics in the pharmaceutical industry and the increasing demand for specialized manufacturing capabilities to support their production.