Granules India share price surges over 2.5% as company enters CDMO business; all you need to know

CDMO stands for contract development and manufacturing organisation. CDMO companies assist various pharmaceuticals and biotechnology companies in tasks such as pharma formulations, drug manufacturing, and launching new medicines.

The pharma major on Friday, in its press release, announced the signing of the acquisition agreement regarding Senn Chemicals AG, a Swiss-based CDMO specialising in peptides.

Senn develops and manufactures peptides and peptide-based applications for its global customers, providing contract research, development, and manufacturing services. The closing of the acquisition is subject to certain conditions. The closing is expected to occur in the first half of 2025, the release added.

"This acquisition enables Granules’ acquiring capabilities into high-growth peptide-based therapeutics. The acquisition aligns with Granules’ vision to enter the rapidly expanding peptide-based anti-diabetic and anti-obesity market, including GLP-1 receptor agonists and other next-generation therapeutics. Granules and Senn have been developing two GLP-1-based APIs, and both projects are progressing well, and more peptide-based APIs are planned to be added to the portfolio to be developed using Senn’s R&D capabilities," the company said further.

Commenting on the acquisition, Dr. Krishna Prasad Chigurupati, Chairman & Managing Director, Granules India, said, "The acquisition of Senn Chemicals AG marks a significant milestone in Granules' strategic growth journey. 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 MD further said, "Senn’s expertise in peptide synthesis, coupled with our large-scale, cost-efficient manufacturing capabilities, positions us to deliver high-quality peptide-based solutions globally. This acquisition is a pivotal moment in our vision to transform Granules into a science- and innovation-led organisation and become a trusted partner in complex and specialised therapeutics."