Granules India completes Senn Chemicals acquisition to expand peptide therapeutics and CDMO services

Granules India Limited has officially closed the acquisition of Senn Chemicals AG, a Switzerland-based company specialising in peptide synthesis and contract manufacturing. This acquisition marks a pivotal move in Granules’ transition into a more research-driven and innovation-focused pharmaceutical organisation. It also positions the company to capitalise on the expanding market for peptide-based drug development and Contract Development and Manufacturing Organization (CDMO) services.

The acquisition was conducted through Granules Peptides Private Limited, a wholly owned Indian subsidiary, and involved the purchase of a 100% equity stake from the founding Senn family. Senn Chemicals’ operations in Dielsdorf, Switzerland, will continue under Granules’ ownership, with a strategic focus on maintaining scientific rigor and deepening client relationships. This transaction reflects a larger strategic ambition to build a differentiated pharmaceutical platform that bridges cutting-edge research with scalable manufacturing capabilities.

Why are peptide therapeutics critical for next-generation drug development?

Peptides, which are short chains of amino acids, play a vital role in the development of targeted therapies across several disease categories including oncology, endocrinology, and metabolic disorders. Their ability to mimic natural biological functions with high specificity and low toxicity makes them ideal candidates for precision medicine. According to global health data, over 60 peptide drugs are approved for clinical use, with more than 600 in various stages of development.

Senn Chemicals brings to the table expertise in both Liquid-Phase Peptide Synthesis (LPPS) and Solid-Phase Peptide Synthesis (SPPS), which are foundational techniques in producing custom peptides at both clinical and commercial scales. Its existing clientele spans pharmaceuticals, cosmetics, amino acid derivatives (AAD), and theragnostic sectors, allowing Granules India to immediately tap into a diversified and regulated customer base in Europe and beyond.

How will this acquisition reshape Granules India’s global strategy and technical capabilities?

The integration of Senn Chemicals enhances Granules India’s global footprint and gives it a direct operating presence in the European market. It also facilitates entry into the high-growth therapeutic space of GLP-1 receptor agonists—peptides that have shown promising efficacy in treating Type 2 diabetes and obesity. Development work on these molecules has already been initiated jointly between the two firms, with a broader pipeline of peptide Active Pharmaceutical Ingredients (APIs) in the works.

Granules Chairman and Managing Director, Dr. Krishna Prasad Chigurupati, described the acquisition as a strategic milestone. He highlighted that Senn Chemicals’ specialised CDMO offerings and established relationships with innovators would strengthen Granules’ positioning in complex drug development. With ten manufacturing facilities, including two in the United States and regulatory approvals from agencies such as the US FDA, EU GMP, TGA, and WHO GMP, Granules now has the infrastructure and geographic reach to scale high-value therapies for global markets.

How does this acquisition reflect broader trends in the pharmaceutical CDMO industry?

The global pharmaceutical industry is undergoing a transformation, with an increasing shift toward outsourced drug development and manufacturing. CDMOs are becoming critical partners for both large pharmaceutical companies and small biotech innovators who seek expertise, speed, and regulatory know-how without investing in in-house infrastructure.

Senn Chemicals, established in 1963, has a proven track record in custom peptide synthesis, offering scalable, GMP-compliant solutions across various industry needs. Its capabilities in analytical method development, automated peptide synthesis, and kilo-scale manufacturing make it a strategic fit for Granules’ vertical integration model. With this acquisition, Granules is entering a competitive but lucrative CDMO market that rewards quality, speed, and specialisation—particularly in niche therapeutic modalities like peptides.

What is the latest sentiment and stock market performance for Granules India?

As of April 9, 2025, Granules India’s stock (NSE: GRANULES) closed at ₹431.10, marking a decline of nearly 3% from the previous trading session. Over the last three months, the stock has corrected by approximately 27.4%, reflecting broader market volatility and possibly cautious investor sentiment around integration risks and future earnings impact from the Senn Chemicals acquisition.

Despite this short-term pressure, the stock has gained more than 37% over the past three years, underscoring investor confidence in Granules’ long-term strategy. The company’s current market capitalisation stands at ₹10,456 crore, and it trades at a trailing 12-month price-to-earnings (P/E) ratio of 21.82—close to the sector average of 26.13. The modest dividend yield of 0.34% suggests a reinvestment-heavy growth strategy.

Technical indicators show the stock is nearing a support level of ₹422.58, with resistance around ₹488.17. A bounce from current levels could indicate bullish reversal patterns, but a breach below support may lead to further downside.

Analyst recommendations remain largely positive, with a consensus 12-month price target of ₹682, implying a potential upside of over 58%. The acquisition of Senn Chemicals is viewed favourably by market watchers, who expect it to contribute to revenue growth and margin expansion over the next few years as peptide APIs move from development to commercialisation.

What does this mean for investors and the future of Granules India?

From an investor standpoint, Granules India appears to be executing a deliberate strategy of value creation through vertical and horizontal integration. The Senn Chemicals acquisition allows the company to enter a high-growth market segment while reducing dependence on commoditised APIs and formulations. It also enhances Granules’ ability to partner with global innovators, thanks to Senn’s established CDMO credentials and European presence.

For institutional investors, the stock’s recent correction may present a buying opportunity, particularly for those seeking exposure to pharmaceutical companies transitioning toward innovation and complex molecule development. However, investors should remain mindful of risks tied to integration execution, regulatory hurdles, and the gestation period of new development projects.

Looking ahead, Granules’ success will depend on how swiftly it can bring peptide candidates to market, scale operations at Senn Chemicals, and deepen CDMO partnerships globally. With biopharmaceuticals and targeted therapies becoming the future of medicine, this acquisition could mark the beginning of a new growth chapter for Granules India—one where science, speed, and specialisation define competitive advantage.