Capacity Expansion of Lexington and Rivervew Sites
Awaiting price reaction for this filing.
Piramal Pharma's Administrative Committee has approved a US$ 90 million investment to expand two of its US facilities. At the Lexington, Kentucky site, the company will add commercial-scale sterile injectable capabilities including a new filling line, two commercial-size lyophilizers, and a 24,000 sq ft manufacturing space, expected to be operational by late 2027. At the Riverview, Michigan site, a new commercial-scale payload-linker suite for antibody-drug conjugates (ADCs) will be added, expected to be operational before end of 2025. Both expansions are brownfield (at existing sites) and will be funded through bank loans and internal accruals. This investment is incremental to Piramal's prior US investments of US$ 570 million.
Positive for shareholders — the expansion strengthens Piramal's contract manufacturing capabilities in high-growth segments (sterile injectables and ADCs/bioconjugates), supports US onshoring demand, and is expected to drive future revenue. Brownfield nature keeps execution risk low, though the Lexington facility takes until late 2027 to come online.