Weight-Loss Drug Boom Has Another Ripple Effect - Rapid Growth Expected In Fill-Finish Market

Contract drug manufacturers are investing billions of dollars in expanding or constructing facilities that fill the injection pens used for weight-loss drugs like Novo Nordisk A/S's NVO Wegovy. 

Interviews with industry insiders reveal fierce competition among pharmaceutical services companies to secure contracts for filling the syringes used in these pens, known as fill-finish. 

This race is driven by Wegovy and the anticipation of Eli Lilly And Co's LLY Mounjaro entering the weight-loss market in the U.S. this year.

Obesity treatment, Wegovy, has experienced a surge in sales since its U.S. launch in June 2021. 

These weekly weight-loss injections are part of a class of drugs known as GLP-1 agonists, a market estimated to be worth up to $100 billion within a decade. Anticipating oral treatments from companies like Pfizer Inc PFE has intensified the competition.

Companies such as WuXi Biologics and Catalent Inc CTLT are expanding their pre-filled syringe capacity to meet the rising demand. 

WuXi Biologics CEO Chris Chen is exploring acquiring more European factories, Reuters noted. 

Catalent is set to launch significant pre-filled syringe capacity in Italy and the U.S. in 2024, in addition to its existing work on Wegovy.

While big drugmakers like Novo are investing heavily in their production, capacity shortages are expected to persist into the next year. 

The surge in fill-finish demand also aligns with predictions that the fill-finish market will double to $12.5 billion between 2019 and 2027. 

Catalent and Thermo Fisher Scientific Inc TMO currently lead the market in the competitive landscape. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.