Onesource Specialty Pharma Limited (ONESOURCE) has reported robust financial performance for the first quarter, with significant growth in revenue and profitability. The company also announced potential strategic acquisitions to expand its global footprint and capabilities in the injectable pharmaceuticals market.

Q1 Financial Highlights

OneSource delivered a strong start to the fiscal year with the following key financial metrics:

• EBITDA Margin: Improved by 500 basis points to 27%
• Adjusted EPS: INR 3.20 per share on a fully diluted basis

The company's performance was driven by growth across all three business segments: drug-device combinations, injectables, and soft gelatin capsules.

Operational Highlights and Future Outlook

OneSource is accelerating its Phase 2 capacity expansion for drug-device combinations, aiming to reach 200 million cartridges by the end of 2026, up from the current capacity of 40 million units. This expansion is in response to increased customer forecasts and take-or-pay contracts, particularly for upcoming Semaglutide generic launches.

The company successfully completed 25 regulatory inspections across all sites and received USFDA and ANVISA approvals, reinforcing its commitment to quality and compliance.

Neeraj Sharma, CEO and MD of OneSource, stated, "We are very confident as our customers are over the next couple of years. The markets which are opening up early starting January next year, all the customers who are scheduled or planning to launch in all these markets, all have take-or-pay contracts."

Strategic Partnerships and Potential Acquisitions

OneSource announced a strategic partnership with Swedish biotech company Xbrane Biopharma, which is expected to strengthen its drug substance business and accelerate regulatory inspections of its drug substance site.

The company's Board of Directors has approved the evaluation of potential acquisitions of facilities in Poland and India. These acquisitions, if completed, could add combined revenue potential of $100 million by FY27, with EBITDA in the range of 36% to 40%.

Arun Kumar, Founder and Non-Executive Chairperson, commented on the potential acquisitions: "We believe that both these assets will add significant value to the long-term plans of OneSource, which obviously will also mean that our targeted revenue of $400 million with $160 million EBITDA will now have an upward trajectory in excess of $500 million and slightly in excess of $200 million of EBITDA."

Market Expansion and Product Pipeline

OneSource is well-positioned to capitalize on the growing demand for GLP-1 agonists and other injectable products. The company is working on 10 different molecules in drug-device combinations, with only three of these being GLPs, demonstrating its diverse portfolio.

The company has already manufactured Liraglutide and Teriparatide for European markets, with launches expected in the first half of the current fiscal year, subject to customer priorities.

Conclusion

OneSource Specialty Pharma Limited's strong Q1 performance, coupled with its strategic initiatives and potential acquisitions, positions the company for significant growth in the coming years. The company's focus on expanding its drug-device combination capabilities, along with its strong presence in the injectables market, is likely to drive its future success in the global pharmaceutical CDMO space.

Onesource Specialty Pharma Limited, a leading contract development and manufacturing organization (CDMO), has announced two significant developments: a potential acquisition to expand its sterile injectable capabilities and its Q1 financial results.

Potential Acquisition of Sterile Injectable Businesses

The Board of Directors of OneSource Specialty Pharma has given in-principle approval to evaluate the potential acquisition of sterile injectable CDMO and CMO businesses from Steriscience Pte. Limited and Brooks Steriscience Limited. This strategic move could significantly enhance OneSource's manufacturing capabilities and global presence.

Key aspects of the potential acquisition include:

• A USFDA-approved sterile fill-finish manufacturing facility in Warsaw, Poland, with expansion capabilities for drug-device combination products.
• An integrated USFDA-approved carbapenem facility in Vadodara, India.
• Both Steriscience SG and Brooks Steriscience Limited are majority-owned by OneSource's promoters.

The company has authorized management to conduct a detailed evaluation of the transaction and appoint necessary consultants, advisors, valuers, and merchant bankers. This move aligns with OneSource's strategy to strengthen its position in the specialty injectable market.

Q1 Financial Performance

OneSource Specialty Pharma also reported its financial results for the first quarter. The company demonstrated year-over-year growth across key financial metrics:

Highlights of the Q1 performance include:

• Revenue growth of 12.00% year-over-year, reaching ₹3,273.00 million.
• EBITDA increased by 37.00% to ₹885.00 million, with margin expansion of approximately 500 basis points.
• The company turned profitable with an adjusted PAT of ₹371.00 million, compared to a loss in the same quarter last year.

Neeraj Sharma, CEO & MD of OneSource Specialty Pharma, commented on the performance: "Our Q1 performance has been in line with our expectations. During the quarter, we secured 6 new contracts and received 25 RFPs across all our offerings. In preparation for forthcoming DDC commercial launches, we have undertaken major capacity expansion work in our flagship site."

The company also highlighted its focus on quality and compliance, with its flagship site successfully clearing back-to-back inspections from USFDA and ANVISA Brazil, paving the way for commercialization.

OneSource Specialty Pharma continues to strengthen its position in the CDMO market, with a focus on complex pharmaceutical products including biologics, drug-device combinations, sterile injectables, and oral technologies. The potential acquisition and strong Q1 results indicate the company's commitment to growth and expansion in the specialty pharmaceutical sector.