Synopsis: OneSource Specialty Pharma Limited has partnered with Germany-based biosimilar developer Formycon AG for a strategic manufacturing partnership. Under the agreement, OneSource will deliver integrated drug substance and drug product manufacturing from its biologics facility in Bengaluru, expanding its footprint in the global biologics CDMO space and supporting Formycon’s growing biosimilar pipeline for global markets.

Biosimilars are not simple chemical copies. They involve the management of living cell lines, the maintenance of extreme systemic purity and the approval of complex biological processes. OneSource is stepping out of the standard commoditised generic space by becoming a long-term strategic partner to supply both Drug Substance (DS) and Drug Product (DP) to an independent European innovator like Formycon.

Shares of OneSource Specialty Pharma Limited were trading at Rs 1,641, down by 1.91 percent from the previous close of Rs 1,673. The stock opened at Rs 1,681.2, touching an intraday high of Rs 1,693.9 and a low of Rs 1,640.1. The company currently commands a market capitalisation of Rs. 18,871 crore.

Partnership Details

OneSource Specialty Pharma announced that it has entered into a strategic manufacturing partnership with Formycon AG, an independent biosimilar developer headquartered in Munich, Germany.

In the collaboration, OneSource will provide integrated Drug Substance (DS) and Drug Product (DP) manufacturing services from its Bengaluru biologics manufacturing facility as Formycon’s strategic manufacturing partner. The partnership supports global biosimilar programmes with Formycon’s biosimilar research and development and OneSource’s end-to-end manufacturing.

The deal is more than just contract manufacturing. OneSource will support the manufacturing of biologic medicines from the drug substance (the active biological ingredient that provides the therapeutic effect) to the drug product (the final finished injectable formulation that is supplied to patients after filling, packaging and quality testing).

Providing both DS and DP manufacturing enables OneSource to participate across a larger portion of the pharmaceutical value chain, strengthening customer relationships while improving long-term manufacturing opportunities.

Why Formycon Is an Important Global Partner

Formycon is one of Europe’s leading independent biosimilar developers with an established commercial portfolio and several products in development. The company already has three biosimilars commercialised globally, while four additional biosimilar candidates, including products targeting Pembrolizumab and Dupilumab, are currently under development. It manages the complete biosimilar value chain, from product selection and clinical development to commercialisation and global supply chain management through long-term international partnerships.

Onesource currently operates five manufacturing facilities approved by leading global regulators, including the US Food and Drug Administration (US FDA) and the European Medicines Agency (EMA). Its integrated platform spans cell-line development, biologics manufacturing, sterile injectables, drug-device combinations and commercial fill-finish capabilities, making it well-positioned to serve multinational pharmaceutical companies. The partnership further enhances OneSource’s position as a global Contract Development and Manufacturing Organisation (CDMO).

Financial Highlights

The company reported a mixed Q4 FY26 performance, with revenue increasing by 0.5 per cent YoY to Rs. 428.22 crore in Q4 FY26 from Rs. 425.95 crore in Q4 FY25, and up 47.5 per cent QoQ from Rs. 290.34 crore in Q3 FY26.

However, the company’s operating profit fell 49.6% year-on-year to Rs. 91.91 crore from Rs. 182.51 crore but improved 430.7% quarter-on-quarter from Rs. 17.32 crore. Hence, OPM contracted by 21.46% from 42.85% in Q4 FY25 but recovered sharply from 5.97% in Q3 FY26.

The company returned to profitability during Q4 FY26, reporting a net profit of Rs. 4.60 crore against Rs. 98.50 crore in Q4 FY25, reflecting the absence of the exceptional gains recorded last year. 

On a sequential basis, earnings recovered significantly from a net loss of Rs. 88.70 crore in Q3 FY26. EPS stood at Rs. 0.40, compared with Rs. 8.61 in Q4 FY25 and a loss per share of Rs. 7.74 in Q3 FY26, indicating a meaningful sequential turnaround.

The balance sheet remained relatively stable, with total assets increasing 8.7% YoY from Rs. 7,552 crore to Rs. 8,210 crore, while the company maintained a moderate debt-to-equity ratio of 0.26x. Current assets stood at Rs. 1,426 crore against current liabilities of Rs. 1,442 crore, resulting in a slightly negative working capital of Rs. 16 crore and a current ratio of 0.99x. 

The company reported cash and cash equivalents of Rs. 97.6 crore while maintaining a ROCE of 0.57% and a negative ROE of 1.09%, reflecting subdued capital returns despite the sequential earnings recovery.

Industry Outlook

The global biosimilars industry is booming as patents are expiring on a number of blockbuster biologic drugs. Globally, healthcare systems are adopting biosimilars to improve affordability and therapeutic effectiveness. And that’s created a demand for quality manufacturing partners who can meet stringent regulatory standards. Indian CDMOs with integrated biologics capabilities and globally approved facilities are poised to benefit as multinational pharmaceutical companies continue to outsource development and commercial manufacturing to cost-efficient, compliant manufacturing partners.

OneSource is evolving from a domestic pharmaceutical manufacturer to a global biologics CDMO. The partnership with Formycon, a European biosimilar developer with marketed products and a strong pipeline, will allow the company to participate in future commercial manufacturing as biosimilars are launched globally.

OneSource Specialty Pharma Limited is a global Contract Development and Manufacturing Organisation (CDMO) with expertise in biologics, sterile injectables, drug-device combinations and oral technologies. The company has five globally approved manufacturing sites and provides integrated end-to-end pharmaceutical development and commercial manufacturing solutions to international healthcare companies.

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