India-based OneSource Specialty Pharma has laid out an ambitious growth strategy aimed at achieving $400 million in revenue by FY28, fuelled by booming global demand for weight-loss drugs such as Semaglutide and a thriving Contract Development and Manufacturing Organisation (CDMO) business.

Strong Focus on Drug-Device Combinations

OneSource is expanding aggressively in the drug-device combination space, which is witnessing increased adoption globally. These drug-device offerings—products that combine medication with delivery mechanisms such as pens or injectors—are complex and capital-intensive to manufacture but offer higher margins and customer stickiness.

According to company CEO Sharma, “a lot of our business is now coming from drug-device combinations.” Several new Master Service Agreements (MSAs) have already been signed, with commercial production expected to begin this year and scaling by FY26–27.

This move positions OneSource to become a preferred supplier for these high-demand products. These agreements also enhance visibility into future earnings, supporting the company’s goal of a steady 40% EBITDA margin.

Semaglutide as the Core Growth Driver

A major element in OneSource's growth thesis is its early-mover advantage in manufacturing Semaglutide generics, a drug originally developed by Novo Nordisk, used for treating diabetes and obesity.

As markets such as Canada, Brazil, China, India, and the Middle East are expected to open up to generic versions of Semaglutide by 2026, OneSource anticipates significant opportunities. Currently, less than 1% of Brazil’s and 3-4% of Canada’s eligible population have access to Semaglutide, highlighting the massive supply-demand gap.

Sharma emphasized, “We expect to be either the sole or principal supplier to most of our customers,” underlining the strategic value of these partnerships and the company’s production capability edge.

$100 Million Capex to Meet Anticipated Demand Surge

To support this anticipated demand, OneSource has committed a capital expenditure of $100 million over the next 2 to 2.5 years, aimed at expanding its drug-device manufacturing facilities. This infrastructure will allow the company to efficiently scale production, particularly for Semaglutide.

The investment is structured to achieve a steady-state asset turnover of 3x, translating to efficient capital utilization and improved returns over time.

With Semaglutide commercialisation set to begin in FY26–27, this capex will be vital in ensuring timely capacity deployment and maintaining a leadership position in the segment.

Comprehensive CDMO Services Offering

OneSource operates as a fully integrated CDMO offering services from pre-clinical development to commercial-scale production. This breadth of capability makes it an attractive partner for biotech and pharmaceutical companies seeking reliable long-term manufacturing support.

By leveraging its technical expertise in injectables and biologics, OneSource serves over 20 global customers, a number expected to grow with the addition of new contracts and the expansion of its drug-device manufacturing capabilities.

Financial Performance and Market Capitalisation

In the January–March 2025 quarter, OneSource reported ₹426 crore in revenue, reflecting a 9% sequential growth from the previous quarter's ₹393 crore. While the company’s stock price has dipped over 3% in the past year, it continues to maintain a robust market capitalisation of ₹18,772.66 crore.

This market movement suggests that investors are adopting a wait-and-see approach, possibly looking for tangible progress in Semaglutide commercialization and capex execution before driving the next re-rating.

Market Positioning and Competitive Advantage

What sets OneSource apart is its focus on niche, high-barrier-to-entry segments, especially in injectable biologics and drug-device combinations. This specialization not only ensures higher margins but also limits competition.

Further, the company’s ability to become the principal supplier for Semaglutide places it in a commanding position as global demand for anti-obesity treatments accelerates.

Moreover, with few players capable of meeting regulatory and technical requirements in these categories, OneSource enjoys a natural moat, supported by its quality compliance, customer relationships, and cost-effective manufacturing in India.

Path to $400 Million Revenue Target by 2028

The management remains confident in achieving the $400 million revenue milestone by 2028, backed by three levers:

1. Scaling up drug-device combination products, especially under recently signed MSAs

2. Mass commercialisation of Semaglutide generics across multiple countries

3. Efficient asset utilisation through high turnover ratios and margin expansion

With global trends aligning in its favour, especially around diabetes and obesity management, OneSource is positioned to ride the healthcare megatrend through a combination of specialization, scale, and global reach.

Conclusion

OneSource Specialty Pharma is aggressively positioning itself as a global leader in injectable biologics and drug-device manufacturing, with a clear focus on the booming Semaglutide opportunity. The company’s $100 million investment and strong customer base underscore its readiness for commercial scale in the next two years.

If execution goes as planned, OneSource could emerge as one of India’s leading pharma growth stories in the coming years, well on track to achieve its $400 million revenue goal by FY28 with a strong EBITDA profile and a scalable manufacturing model.

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