Weight-loss drugs in spotlight as pharma services firms rush to snap up business

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SaltWire's Atlantic regional weather forecast for October 26, 2023 | SaltWireBARCELONA - Soaring demand for obesity drugs was in the spotlight at the world's largest trade show for the pharmaceutical services industry this week, as it fuels a boom for firms that fill and assemble the self-injection pens.

Amid a global obesity crisis, some analysts predict the market for weight-loss drugs could be worth $100 billion by 2030. Some companies, like West Pharmaceutical Services, whose share price is up 37% year to date, are already providing components for the injections pens and reaping rich rewards from the business. Other companies specializing in parts of the manufacturing process for the injections are vying to get a bigger foothold by scaling up their capacity.

The specialist process of filling the syringes used in the pens, called aseptic or sterile fill-finish, is particularly in demand. While big pharma companies have often outsourced parts of their manufacturing to save money, Novo and Lilly are relying on contract drugmakers' expertise in newer technologies like sterile fill-finish, said Andre Valente, a partner at L.E.K. Consulting's London office who advises investors on healthcare.

 

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