Divi's Labs Bets on Peptide Growth with Rs 2,000 Cr Expansion

Peptide growth is emerging as an important opportunity for pharmaceutical contract manufacturers as demand for innovative medicines continues to rise globally.

Divi's Laboratories plans to invest around Rs 2,000 crore, with a 20% variation, in new manufacturing capacities, including peptide synthesis infrastructure.

The Hyderabad-based company is installing multiple 3,000-litre Solid Phase Peptide Synthesis (SPPS) lines to support customer requirements and ongoing development programs.

This expansion reflects Divi's focus on innovative peptide manufacturing, where complex molecules, longer production cycles and growing pharmaceutical demand create opportunities for specialized contract manufacturers.

Divi's Labs Expands Peptide Synthesis Around Customer Demand

Divi's Laboratories is expanding its peptide synthesis capabilities around customer interest and ongoing development programs. Speaking to analysts after the company's second-quarter FY27 results, CEO Dr Kiran Divi explained that long-chain peptides require considerable manufacturing time, often taking one to two months to produce.

This extended production cycle makes dedicated manufacturing lines important for handling multiple customer programs and meeting individual requirements. The company is installing several 3,000-litre SPPS lines to support these engagements.

Dr Kiran Divi also clarified that the company focuses on innovative peptide programs rather than generic peptide manufacturing. This approach allows Divi's to concentrate on specialized pharmaceutical manufacturing opportunities.

SPPS offers an important manufacturing capability for complex peptide molecules. The process builds peptides by assembling amino acids step by step on a solid support, allowing manufacturers to produce molecules used in innovative therapies.

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• Customer-backed expansion: Divi's is aligning new capacity with customer interest and ongoing programs.
• Long production cycles: Long-chain peptides can require one to two months of manufacturing.
• Innovative medicines: The company focuses its peptide activities on innovation-driven programs.
• Complex molecules: SPPS supports the production of advanced peptide-based medicines, including tirzepatide.

Can Peptide Manufacturing Become a Bigger Growth Driver?

The growing demand for peptide-based medicines presents an opportunity for Divi's Laboratories to strengthen its position in pharmaceutical contract manufacturing. GLP-1 therapies have expanded the commercial potential of peptides, particularly in type 2 diabetes, chronic weight management, and related conditions.

However, the manufacturing process remains time-consuming, and supply constraints continue to encourage pharmaceutical companies to work with specialized contract manufacturing partners. The investment also reflects management's confidence in the long-term potential of peptide manufacturing.

According to ETPharma, Divi's plans its capacity expansion around customer requirements and current requests for proposals. The company sees peptide manufacturing as an innovation-focused opportunity rather than a conventional generic business.

Its growth opportunity rests on several factors:

• Growing pharmaceutical demand: GLP-1 medicines and other peptide therapies are creating opportunities for manufacturers.
• Specialised capabilities: Complex molecules require manufacturing expertise and dedicated infrastructure.
• Customer partnerships: Long production cycles encourage pharmaceutical innovators to work with experienced contract manufacturers.
• Global ambitions: Divi's aims to strengthen its capabilities and become one of the world's leading integrated peptide players.