Piramal Pharma Solutions (PPS), the global contract manufacturing division of Piramal Pharma Ltd, is set to invest $80 million in expanding its sterile injectables facility in Lexington, Kentucky.
Piramal’s global Contract Development and Manufacturing Organization (CDMO) plans to more than double the facility’s capacity by Q1 2027. Currently, the Lexington site can manufacture 104 product batches per year (utilization at peak levels). Once the outlay is complete, this capacity will increase to over 240 annual batches, the company said in a press statement.
The investment, financed by bank loans and internal accruals, will help the CDMO meet the demands of a growing market. The site plays a key role in the company’s antibody-drug manufacturing programme, ADCelerate.
The expansion will add 24,000 sq. feet of manufacturing space to the facility as well as a new laboratory and new machinery.
Injectables market
“Filling the commercial manufacturing gap enables the Lexington site to access the rapidly expanding injectables market and establish itself as a key player in the segment,” said Nandini Piramal, chairperson, Piramal Pharma.
Piramal expects the injectables market to exceed $20 billion in value by 2028.
The pharmaceuticals firm had previously shared plans to double its turnover to $2 billion by 2030. The company aims to double its CDMO revenue in the same period, which currently accounts for 58% of Piramal’s revenue, the chairperson had said last week.
Piramal’s CDMO business is also likely to benefit from the US Biosecure Act. The act, if approved by the US Senate, will prohibit US federal agencies from procuring any biotechnology equipment from certain Chinese entities.
This will directly benefit Indian pharma companies with CDMO capabilities.
Piramal, however, said that the transition from Chinese companies to Indian counterparts would take time and the Act would be a future tailwind. The chairperson also said that the company is seeing an increase in Request for Proposal (RFPs) from their clients since March 2024.
