Stories
Novo Nordisk Manufacturing Pivot Boosts Peptide CDMO Outlook
M
Moneycontrol•05-10-2026, 13:51
Novo Nordisk Manufacturing Pivot Boosts Peptide CDMO Outlook
- •Novo Nordisk plans to utilize contract manufacturing organisations for peptide API synthesis, marking a significant shift from its traditional vertically integrated model.
- •The shift is driven by the massive surge in peptide requirements for oral formulations like oral Wegovy, which can increase annual API needs per patient by about 73 times.
- •Macquarie highlights that manufacturing costs, fermentation-based production, and scale will be critical criteria in Novo's partner selection process.
- •Divi's Laboratories has been named Macquarie's top Indian pick with an Outperform rating, alongside positive ratings for WuXi AppTec and Samsung Biologics.
Key Questions Answered
Novo Nordisk is turning to contract manufacturing organisations (CMOs) for peptide API synthesis to address the major manufacturing challenge posed by peptide therapeutics, particularly oral formulations which significantly increase annual API requirements per patient.
Macquarie named Divi's Laboratories as its top Indian pick in the healthcare space, rating the stock as Outperform with a 12-month target of Rs 10,200.
Manufacturing cost is expected to shape partner selection, as fermentation-based peptide API production remains the lowest-cost route, while quality, regulatory track record, and reliability will also be critical criteria.
