German CDMO invests $980m in GLP-1 production expansion

Corden Pharma is making a significant investment of €900 million ($980 million) to enhance its manufacturing capabilities for diabetes medications, especially focusing on peptide manufacturing at its facilities in Colorado, US, and Europe. This expansion is driven by the global shortage of diabetes drugs and the rising demand for GLP-1 peptides. GLP-1 receptor agonists are increasingly important in treating diabetes and aiding weight loss.

In a press release dated July 16, the company detailed its plans for the investment, which will be spread over the next three years. This investment includes building a new greenfield site dedicated to large-scale peptide manufacturing. The company has secured multiple long-term contracts valued at over €3 billion, underscoring the potential benefits of this expansion.

Corden Pharma has already established significant partnerships. Last year, the company signed a key agreement with Eli Lilly to produce the active pharmaceutical ingredient for Mounjaro (tirzepatide), an obesity drug. Additionally, in January 2023, Corden Pharma announced a multi-year agreement worth $1 billion to manufacture a large volume peptide for an undisclosed company.

The announcement comes at a time when other pharmaceutical companies like Aurisco Pharmaceutical and Novo Nordisk are also investing heavily in their peptide manufacturing capabilities to meet the increasing demand for GLP-1 receptor agonists. These therapies have proven to be highly successful financially. For instance, Novo Nordisk's type 2 diabetes treatment Ozempic (semaglutide) generated around $14 billion in global sales last year. Similarly, Eli Lilly's Mounjaro (tirzepatide) brought in $5.16 billion in global sales in 2023. Projections by GlobalData suggest that global sales for these therapies could reach $22.43 billion and $27.42 billion by 2030, respectively.

Despite significant efforts to ramp up production, shortages of GLP-1 receptor agonists persist. The European Medicines Agency (EMA) acknowledged these challenges in a statement on June 26. Emer Cooke, the EMA's executive director, noted that the shortages are ongoing and unlikely to be resolved within the year. In response, the EMA has introduced measures to address the shortages, urging EU member states to collaborate with pharmaceutical companies to improve the distribution of these vital medications.

As part of these efforts, the EMA plans to conduct a real-world data study through Darwin EU to better understand how these drugs are being used in practice. The EMA's Medicine Shortages Single Point of Contact Working Party has also recommended that companies increase their manufacturing capacities and launch awareness campaigns about these therapies.

Other global health authorities, including the World Health Organization (WHO) and the US Food and Drug Administration, have also addressed the ongoing supply shortages. The WHO has issued warnings to patients to avoid falsified GLP-1RA products in light of the supply issues.

Corden Pharma's investment is a significant step in addressing the global demand for diabetes treatments, particularly GLP-1 receptor agonists, amidst the ongoing shortages. Through this expansion, Corden Pharma aims to meet its ambitious sales target of $1 billion by 2028, while also contributing to alleviating the global shortage of these critical medications.