Ypsomed signs autoinjector supply deal with Novo Nordisk

by Arjun Singh

Swiss medical technology company Ypsomed has announced a long-term supply deal with Novo Nordisk for autoinjectors, which are used by people self-administering drugs to treat various metabolic indications. Ypsomed will expand its manufacturing capacities to accommodate Novo Nordisk’s needs, with the Danish drugmaker contributing a significant part of the investment for additional production infrastructure. The autoinjectors will be used for drugs currently undergoing clinical trials, specifically for Novo’s “second-generation GLP-1s”.

Ypsomed’s announcement comes as Novo Nordisk’s weight-loss drug business continues to grow, resulting in increased demand for pharmaceutical services companies. The company’s weight-loss drug, Wegovy, is in high demand in the United States and several European countries. Novo has struggled to keep up with this demand and has therefore been investing heavily in new factories and contract manufacturers to expand its supply chain and production capabilities. Reuters recently reported that Novo has hired U.S. contract manufacturer PCI Pharma Services to handle assembly and packaging of Wegovy.

The agreement with Ypsomed is part of Novo’s plan to invest approximately 25 billion Danish kroner ($3.6 billion) in expanding capacity across its production facilities this year. Ypsomed, along with other companies such as West Pharmaceuticals and Gerresheimer, is one of the main manufacturers of components for self-injection drugs. These companies stand to benefit from the booming obesity market, which is estimated to be worth $100 billion by 2030.

According to healthcare-focused investors and pharma industry analysts, companies with exposure to the obesity market are performing well on expectations of increasing demand for GLP-1 injection drugs in the coming years. Once Ypsomed and other companies secure supply contracts with pharma giants like Novo, their components are likely to be used for an extended period due to the complex regulatory approval process for injection-pen devices.

Ypsomed’s CEO, Thomas Kutt, emphasized the long-term nature of these supply contracts, likening them to a “marriage” that is unlikely to dissolve easily. With the obesity market expected to continue growing, Ypsomed and other companies in this sector are well-positioned to benefit from the increased demand for autoinjectors and related healthcare products.

Overall, the partnership between Ypsomed and Novo Nordisk highlights the significant growth potential in the weight-loss drug market and the opportunities for pharmaceutical services companies to support the expanding needs of drug manufacturers. With investments being made to increase manufacturing capacities, companies like Ypsomed are poised to capitalize on the growing demand for autoinjectors and contribute to the development of innovative drugs for metabolic indications.

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