According to reports from Business Standard, Piramal Pharma is strategically avoiding the increasingly crowded generic GLP-1 peptide market, focusing instead on niche, higher-margin peptide opportunities as it prepares for a recovery in its contract development and manufacturing (CDMO) business. Chairperson Nandini Piramal stated that the company is "not necessarily looking at the GLP-1s. We're looking at more niche peptides that have their own markets." The company is focusing on specialised, science-led peptide opportunities rather than large-scale commodity manufacturing linked to blockbuster obesity drugs such as semaglutide and tirzepatide. As Piramal noted, "We don't do the large-scale commodity opportunities. We're looking at more niche, science-led peptides." This strategy comes at a time when several global and Indian CDMO players are investing aggressively in peptide manufacturing capacity amid surging demand for obesity and diabetes drugs.
As reported by Business Standard, the company's CDMO business reported revenue of ₹4,915 crore in FY26, down 10 percent year-on-year, hurt by inventory destocking in a large on-patent commercial product and slower early-stage order inflows during the first half. However, Piramal indicated that the destocking cycle has now run its course, stating "It is behind us. It is complete." The company continues to target early-to-mid-teen revenue growth and expects FY27 growth to be driven by new customer additions rather than a return of volumes from the large on-patent product. Piramal emphasized that "At this point, we are not counting on it," referring to the lost business, instead banking on stronger order inflows, improving biotech funding and growing demand for differentiated manufacturing services to drive growth.
According to Business Standard, Piramal's CDMO business derives around 40 percent of revenue from differentiated offerings such as antibody-drug conjugates (ADCs), high-potency active pharmaceutical ingredients (HPAPIs), sterile injectables, peptides and on-patent manufacturing services. The company has 155+ molecules under development and 25 molecules in Phase-III, with 47 percent of CDMO revenue linked to innovation work. Management has guided for a return to early-to-mid-teen revenue growth in FY27, with earnings expected to grow faster than revenue as operating leverage improves. The company has been seeing improved demand conditions following a recovery in global biotech funding, with stronger request-for-proposal (RFP) activity and order inflows since the second half of FY26, supported by improved US biopharma funding and higher merger-and-acquisition activity in the sector.
As reported by Business Standard, to support long-term growth, Piramal is investing around $90 million to expand sterile injectable and payload-linker capacities at its Lexington and Riverview facilities, while continuing to build capabilities in higher-value segments such as ADCs and specialised manufacturing services. The company completed 38 regulatory inspections, including three US Food and Drug Administration inspections, during FY26 without receiving any Official Action Indicated (OAI) observations, while customer audits rose to a record 209. Piramal attributed the performance to a quality-first culture, stating "Quality is a culture." The company has also received an Establishment Inspection Report (EIR) for its Lexington facility following a Form 483 inspection, allowing it to maintain its zero-OAI track record. Piramal emphasized that "Companies get repeat OAIs because they rush to do quick fixes without doing the culture transformation."
