Weight-loss drugs like Ozempic and Wegovy have jolted the global pharmaceutical industry. With proven outcomes and soaring demand, the market could surge to an estimated $150 billion by 2035. Unsurprisingly, healthcare players are scrambling to carve out their slice of the pie.
Among them is Onesource Specialty Pharma Ltd, a newly listed contract development and manufacturing organization (CDMO) that demerged from Strides Pharma Science Ltd and debuted on the stock exchanges on 24 January 2025. But the question remains—is Onesource just getting started, or is the market already pricing in the optimism? Let’s dive deeper.
India’s First Pure-Play Specialty Pharma CDMO
Onesource holds the distinction of being India’s first pure-play specialty pharmaceutical CDMO, focusing on complex, high-value pharma products and biologics. Its integrated capabilities span:
Biologics
Drug-device combinations (DDC)
Complex injectables
Oral technologies like soft gelatin capsules
Currently, the company boasts an annual production capacity of over 100 million sterile doses and 2,400 million capsules, with ambitious plans to double its sterile capacity to over 200 million doses within three to four years. With 90–95% of sales derived from the US and European Union markets, Onesource enjoys strong customer stickiness—75% of its revenue comes from repeat business.
However, this concentration in developed markets also comes with regulatory risks that could impact growth if policy winds shift.
Riding the GLP-1 Miracle Drug Wave
Three industry trends are aligning in Onesource’s favor:
Rise of GLP-1 Drugs: These drugs, celebrated for their effectiveness against Type 2 diabetes and obesity, are creating enormous demand.
Biosecure Act Potential: Proposed US legislation aimed at reducing dependence on Chinese supply chains could boost opportunities for non-China partners like Onesource.
Industry Consolidation: Recent acquisitions of large CDMOs by pharma majors are tightening the supply of outsourced manufacturing services, opening doors for players like Onesource.
Onesource’s expertise in drug-device combinations gives it a strategic edge, particularly as GLP-1 patents expire. With 39 active requests for proposals (RFPs), demand is clearly on the upswing.
Building Capabilities for Next-Gen GLP-1 Drugs
Onesource has established itself as a pioneer in DDC solutions, especially for GLP-1 drugs, with:
Nine molecules (GLP-1s, biologics, small molecules) in its portfolio
17 customers, including four of the top five global generics
A robust 20%+ CAGR growth projection for the DDC market
The company’s cutting-edge Bausch + Ströbel filling lines and over 20 advanced, customizable machines ensure it can meet global standards for sterile injectable manufacturing.
Doubling DDC Capacity to Meet Soaring Demand
With a track record of 50+ executed DDC projects, Onesource is preparing for a major scale-up:
10+ DDC projects nearing supply agreements with approvals expected in H2FY26
15+ more projects lined up for commercial launch between FY26–FY28
Doubling DDC capacity from 40 million to over 90 million units by Q3FY26
Planning a second plant to further double capacity by FY27
While DDC volumes may stay modest compared to GLPs, the higher per-unit value ensures substantial revenue contributions.
Three GLP-1 Molecules Ready for Commercialization
Onesource has already secured Master Service and Clinical Supply Agreements for three GLP-1 molecules:
Molecule A: Supplies began in Q4FY25; full revenues from FY26.
Molecule B: Production starting in FY26; revenue inflow post-market launch.
Molecule C: Will kick in post-2036, post-exclusivity, but supply agreements are already in place.
The expiry of Semaglutide’s patent in over 100 countries by FY26–27, including large underpenetrated markets like Brazil and Canada, is expected to catalyze growth.
Capex-Led Expansion on Track
With ₹850 crore earmarked for capacity expansion, Onesource’s project pipeline is on schedule:
Capacity Type
Current
Planned
Target Completion
Cartridges
40 mn
220 mn
Q4FY26
Pre-filled Syringes
38 mn
50 mn
Q3FY26
Vials
28 mn
50 mn
Q4FY26
Microbial Fermentation
1 KL
6 KL
FY27–28
This capex is being funded by internal accruals, partner contributions, and debt, with clients paying advances to secure capacity.
Profitability and Margin Leap in FY25
The financials are compelling:
Metrics
FY24
FY25
Revenue (₹ crore)
1,087
1,445
Ebitda (₹ crore)
225
466
Margin (%)
21%
32%
Net Profit (₹ crore)
-28
93
RoCE (%)
NA
23%
With new customer additions and robust repeat business, Onesource forecasts over 30% revenue CAGR to ₹3,378 crore by FY28 and 40% EBITDA CAGR to ₹1,331 crore. Margins are projected to expand to 40%, with return on capital employed (RoCE) surging to 50%.
Expanding Horizons: Biologics and Softgel Markets
Beyond GLP-1 and DDCs, Onesource is poised to capitalize on:
Biologics: Expected to grow at 14% CAGR, reaching $38 billion by FY28.
Softgel Capsules: Projected to grow at 9% CAGR to $18 billion.
With one of the largest softgel capacities globally, Onesource is well-positioned to seize these opportunities.
Valuation: Growth Priced In?
Currently trading at a 43x EV/Ebitda multiple, Onesource is valued above peers like Neuland Labs and Piramal Pharma. However, the valuation moderates to 15x FY27E EV/Ebitda, assuming successful execution of expansion plans.
Risks remain—product approval delays, project cancellations, and heightened competition could weigh on growth. Still, with the weight-loss drug boom, strong customer relationships, and aggressive capacity expansion, Onesource seems primed for the long haul.
Bottom line:Onesource Specialty Pharma’s ascent is no accident. With industry tailwinds at its back and strategic investments ahead, the company could very well be at the start of a compelling growth journey.
