Granules India to acquire Senn Chemicals to expand CDMO business

Granules India Limited (BSE: 532482, NSE: GRANULES) has announced a strategic acquisition of Senn Chemicals AG, a Switzerland-based Contract Development and Manufacturing Organization (CDMO) specializing in peptide-based therapeutics. This move marks a significant expansion into the peptide therapeutics market, strengthening Granules India‘s capabilities in high-growth segments such as GLP-1 receptor agonists for diabetes and obesity treatments.

With this acquisition, Granules India is entering the specialized CDMO business for peptide-based therapies, leveraging Senn Chemicals’ advanced expertise in Liquid-Phase Peptide Synthesis (LPPS) and Solid-Phase Peptide Synthesis (SPPS). The transaction aligns with Granules India’s long-term strategy to diversify its pharmaceutical portfolio and meet the increasing global demand for next-generation peptide-based therapeutics.

Why Is Granules India Entering the Peptide Therapeutics Market?

The peptide therapeutics market is experiencing rapid expansion, driven by increasing demand for targeted drug treatments in areas such as diabetes, obesity, oncology, and autoimmune diseases. Peptides offer a highly effective and precise mechanism of action, reducing side effects compared to traditional small-molecule drugs.

By acquiring Senn Chemicals AG, Granules India is reinforcing its presence in this high-growth pharmaceutical segment, particularly in GLP-1 receptor agonists, which are among the most sought-after treatments for metabolic disorders. Senn Chemicals’ expertise in custom peptide synthesis, amino acid derivatives (AAD), and peptide fragments will allow Granules India to expand its CDMO business with a broader peptide-based drug development pipeline.

What Does Senn Chemicals AG Bring to Granules India?

Senn Chemicals AG, headquartered in Dielsdorf, Switzerland, has built a strong reputation as a custom peptide manufacturer since 1963. With extensive experience in CDMO services for pharmaceuticals, cosmetics, and theragnostics, the company brings significant value to Granules India’s expansion strategy.

The Swiss manufacturer is widely recognized for its expertise in Liquid-Phase Peptide Synthesis (LPPS) and Solid-Phase Peptide Synthesis (SPPS), which enable the efficient development of complex peptide-based drugs. Its manufacturing facility is GMP-certified and operates under Swissmedic’s regulatory oversight. The Mutual Recognition Agreement (MRA) between Swissmedic and the U.S. Food and Drug Administration (FDA) ensures that Swissmedic’s cGMP inspections are recognized by the FDA, allowing for seamless regulatory approvals in key global markets.

Senn Chemicals has an established customer base, including pharmaceutical innovators and biotech companies seeking specialized peptide development and manufacturing services. Its robust R&D platform will support Granules India in expanding its peptide-based API pipeline and developing next-generation peptide-based active ingredients.

How Will Granules India Leverage This Acquisition for CDMO Expansion?

The acquisition of Senn Chemicals AG marks a significant step in Granules India’s CDMO business expansion, providing an entry point into Europe’s regulated pharmaceutical markets and enhancing its capabilities in complex therapeutics. The acquisition strengthens Granules India’s ability to scale peptide and amino acid derivative production, ensuring a steady supply of high-quality peptide-based therapeutics.

Senn Chemicals’ European presence provides Granules India with direct access to a skilled workforce, advanced regulatory frameworks, and established market relationships. This acquisition also complements Granules India’s long-term goal of becoming a leading CDMO in specialized pharmaceutical solutions.

According to Dr. Krishna Prasad Chigurupati, Chairman & Managing Director of Granules India, the acquisition is a crucial milestone in the company’s transformation into an innovation-driven pharmaceutical leader. He emphasized that Granules India’s expertise in cost-efficient large-scale manufacturing, combined with Senn Chemicals’ specialized peptide synthesis capabilities, will allow the company to deliver high-quality, affordable peptide-based drug solutions worldwide.

How Does This Acquisition Strengthen Granules India’s API Pipeline?

Granules India and Senn Chemicals have already initiated the development of two GLP-1-based active pharmaceutical ingredients (APIs), with additional peptide-based APIs expected to be added to the portfolio. This pipeline expansion is crucial for meeting the increasing demand for peptide-based treatments in metabolic disorders and other complex diseases.

By integrating Senn Chemicals’ peptide synthesis expertise, Granules India will accelerate drug discovery and development in therapeutic peptides, particularly in diabetes, cardiovascular, and oncology segments. The acquisition enhances its CDMO offerings by providing a seamless solution from preclinical development to commercial-scale production. Granules India will also expand its peptide-based formulations portfolio, strengthening its position in the global peptide therapeutics market.

What Are the Financial and Regulatory Aspects of the Acquisition?

The acquisition is expected to be completed in the first half of 2025, subject to regulatory approvals and customary closing conditions. While financial terms of the deal were not disclosed, the transaction significantly enhances Granules India’s presence in the European pharmaceutical sector.

Stifel Nicolaus India acted as the exclusive financial advisor for Granules India, while Loyens & Loeff provided legal advisory services. Deloitte conducted financial and tax due diligence, and Kroll provided valuation advisory support for the transaction. With this acquisition, Granules India is strengthening its CDMO business expansion and creating new opportunities to partner with biotech and pharmaceutical companies worldwide.

The acquisition of Senn Chemicals AG represents a pivotal move for Granules India, marking its entry into the peptide therapeutics market and strengthening its CDMO business. This expansion allows the company to tap into high-value peptide-based APIs and establish a strong foothold in regulated pharmaceutical markets in Europe and North America.

By leveraging Senn Chemicals’ R&D expertise and regulatory approvals, Granules India is poised to become a global leader in peptide drug development. The acquisition reflects the company’s commitment to innovation, scalability, and affordability, reinforcing its position as a trusted partner in specialized pharmaceutical solutions.