Hyderabad-based drugmaker HRV Pharma is expanding its peptides and oncology capabilities through manufacturing partnerships, seeking to tap niche and complex segments while keeping its business asset-light. According to reports from Mint, the pharmaceutical platform is investing approximately ₹150 crore in dedicated capacity for the two segments, marking a shift from using available manufacturing capacity to underwriting specialized capacity for products it owns and commercializes. The company's business model involves owning intellectual property and regulatory rights while outsourcing manufacturing and commercialization to partners, creating a contract development and manufacturing organization (CDMO) approach that gives it control over both IP and customer relationships.
The company has signed an agreement with Hyderabad-based Arene Lifesciences to jointly invest ₹50 crore in a dedicated peptide facility. As reported by Mint, the facility will focus on commercial-stage and new-to-generic synthetic peptides across multiple therapeutic areas, with HRV retaining ownership of regulatory assets, product IP, and global commercialization rights. Arene will own the facility, while HRV will underwrite capacity exclusively for its requirements. According to Anshu Shrivastava, director of strategy and corporate development at HRV Pharma, the company has "inverted" the traditional approach by working with customers to identify the right product before choosing manufacturing partners. "We work with customers, identify the right product and then choose the right partner to manufacture it. This gives us control over both the IP side and the customer side," Shrivastava explained, adding that the company has "inverted" the traditional approach by working with customers to identify the right product before choosing manufacturing partners.
The company is also investing ₹100 crore in a manufacturing facility for high-potency oncology active pharmaceutical ingredients (APIs), which is likely to be announced shortly. According to Mint, HRV is setting up a majority-owned joint venture with an Indian-listed company for a dedicated OEL Level 4 and 5 facility designed to handle highly toxic compounds. The company sees a gap in the mid-market for reliable suppliers of high-potency oncology APIs and specialised molecules, positioning itself to capitalize on this opportunity as more competitors enter the segment.
Calling peptides a 'new age opportunity', HRV director of strategy and corporate development Anshu Shrivastava pointed to the US FDA's July panel which voted to ease restrictions on controversial peptides. As reported by Mint, the FDA expert panel voted to allow compounding of six peptides, including BPC-157, Semax and MOTS-c. "Because of our model, we can get to this opportunity the fastest. We have been working with certain manufacturers in anticipation of this ruling from the FDA. Our initial test batches are already in place," Shrivastava said. The company pegs the total addressable opportunity for peptides in regulated markets at $2 billion, with products expected to reach the market over the next 12-18 months, with the US as its initial focus. "The most important factor with US markets is not pricing but reliability of the supply chain," Shrivastava emphasized, adding that dedicated capacity would give HRV an advantage as more competitors enter the segment.
The company expects its revenue to exceed ₹600 crore in FY27, with the US driving a significant part of the growth, founder, managing director and CEO Hari Kiran Chereddi told Mint. HRV reported a revenue of over ₹400 crore in FY25, according to Chereddi. The company is also exploring international acquisitions while continuing to avoid investments in physical manufacturing assets, maintaining its asset-light business model while positioning for growth in the specialized pharmaceutical segments.
