Piramal Pharma stock in focus on $80 million expansion plan for Kentucky injectables facility

Piramal’s Contract Development and Manufacturing Organization (CDMO) aims to more than double the facility’s capacity by Q1 2027. Currently, the Lexington site can produce 104 product batches annually at peak utilization. Upon completion, this capacity will increase to over 240 batches per year, the company revealed in an exchange filing.

The investment, funded through bank loans and internal accruals, will enable the CDMO to meet growing market demand. The Lexington facility plays a pivotal role in the company’s antibody-drug conjugate (ADC) manufacturing program, ADCelerate.

The company highlighted that research, development, and scientific innovation have driven rapid growth in the injectables market, which is projected to reach a value of over $20 billion by 2028. This growth reinforces the need for strong commercial-scale manufacturing capabilities.

The expansion will add 24,000 square feet of manufacturing space, along with a new laboratory and advanced machinery.

On Monday, Piramal Pharma’s shares closed at Rs 228.9, up 2.62% on the BSE, while the benchmark Sensex fell 1.49%. Its shares have surged 65% in 2024 to date and 125% over the past one year, with the company currently holding a market capitalization of Rs 30,353 crore.Piramal Pharma narrowed its net loss to Rs 89 crore in Q1FY25 from a net loss of Rs 99 crore in the corresponding quarter of the previous year. Revenue from operation rose 12% year-on-year (YoY) to Rs 1,951 crore in Q1FY25. EBITDA rose 31% YoY to Rs 224 crore while EBITDA margins expanded 100 basis points to 11%.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times.)