OneSource: The Next Growth Opportunity in GLP-1?

Shaily Engineering Plastics has drawn attention to India's GLP-1 drug-delivery opportunity. But the value chain extends beyond pens and auto-injectors to formulation, sterile filling, cartridge manufacturing and device integration. This is where

OneSource Specialty Pharma becomes interesting. While Shaily focuses on drug-delivery devices, OneSource operates a broader CDMO platform across DDC, Biologics, Sterile Injectables and Softgels. 1. DDC: Near-term growth driver The second cartridge line is commercial, while line 3 is undergoing qualification. Management expects DDC capacity to triple by FY28. Semaglutide approvals are anticipated in Brazil and Turkey over the next two quarters. Converting these opportunities into commercial volumes is key. 2. Biologics: Another growth engine Two of six Q2 wins were in biologics. OneSource also highlighted a new US biotech partnership for integrated drug substance and drug product capabilities. Its active RFP pipeline stands at 75+ across DDC and biologics. 3. FY28 ambition Management reiterated targets of $400 million organic revenue and $160 million EBITDA, with a 40% steady-state margin versus 31.6% currently. Delivery depends on capacity ramp-up, customer conversion and operating leverage. 4. Why OneSource is worth watching? Shaily's healthcare revenue grew 78% in Q2, highlighting device-led growth. As GLP-1 programmes scale, demand for sterile filling and device integration could create opportunities for CDMOs like OneSource. Investor Takeaway OneSource's long-term growth story remains intact, with considerable headroom across GLP-1-led DDC, biologics and established businesses. Capacity expansion and a growing customer pipeline provide multiple growth drivers. Execution and commercial conversion remain key risks. However, the opportunity extends beyond GLP-1: OneSource is building a scalable specialty CDMO platform with the potential for sustained long-term growth.