CordenPharma Invests $978.7M in US and Europe Expansions
The investment will grow its peptide technology platform.
CordenPharma is investing ~€900m ($978.7M) over the next three years to grow its peptide technology platform.
Plans include two major expansions occurring in parallel in the US and Europe, including both existing facilities and new constructions designed and built according to the pharmaceutical industry's most stringent quality and technical standards for short and long peptide manufacturing, including Biologics License Applications (BLA) requirements.
The US expansion involves bringing additional peptide capacity to the CordenPharma Colorado site with the planned construction of a new large-scale manufacturing facility, and an additional increase in manufacturing trains in the existing facility. This is the result of rapidly increasing demand in the Diabetes and Obesity Glucagon-like Peptide 1 (GLP-1) agonist medications market, and comes off the back of multiple, long-term, multiyear contracts totaling ~€3bn, with potential upsides.
The European expansion centers on the construction of a new state-of-the-art greenfield facility, with the aim of creating additional Peptide capacity to serve customers from initial early clinical to late-stage commercial manufacturing. The new site will be located in the heart of Europe, fully integrated within CordenPharma's existing facility network.
"These investments will profoundly strengthen our ability to provide valuable and much needed support to innovators for the benefit of patients. We are honored by the trust our customers have placed in us to deliver expert outsourcing for large multiyear contracts, and our team is proud to contribute decades of peptide manufacturing experience towards these transformative new medicines," said Dr.Michael Quirmbach, president & CEO of CordenPharma.
"In addition, the strong commitment and support of our shareholder Astorg demonstrates their strategic vision for CordenPharma to become the leading CDMO for complex modalities such as Peptides, by offering fully-integrated end-to-end services from APIs to Drug Products (for both Injectable and oral peptides)," he added.
In 2022, CordenPharma was acquired by Astorg, a leading Pan-European private equity firm, and its ambitious growth plans aim to help the company reach their ~€1bn sales mark for its pioneering Peptide Platform, and ~€1.8bn total group revenue by 2028. Upon completion, the new construction will be fully integrated within its network of cGMP manufacturing facilities, along with technical and regulatory support by expert teams needed to secure innovators' supply chains with small to large-scale, fully integrated services from APIs to drug products.
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