Investors bet on CDMOs amid weight-loss drug boom

The global frenzy has also caught the attention of several large Indian drugmakers

- Jessica Jani & Shrushti Vaidya

The global boom in weight-loss drugs has investors excited about India’s drug contract manufacturers, many of which have been expanding their niche capabilities to meet the growing demand for drugs such as semaglutide and liraglutide.

Investors are betting on these contract development and manufacturing organizations (CDMOs) as they are the earliest beneficiaries of the boom, having already acquired the capacity to produce these drugs. Shares of Indian CDMOs such as OneSource Specialty Pharma, Divi’s Laboratories and Gland Pharma, which have the ability to manufacture these drugs, have jumped between 7% and 141% over the past year.

The global frenzy has also caught the attention of several large Indian drugmakers including Sun Pharma, Dr Reddy’s, Mankind Pharm and Cipla, which soon plan to launch copycat versions of semaglutide, which goes off-patent in several markets in March 2026. However, investors are betting that CDMOs will benefit first, and sentiment around these formulators appears muted, going by their share prices. Over the past year, shares of India’s top drug formulators have returned between “12% and 1%.