Synopsis:
Jubilant Pharmova’s wholly-owned subsidiary, Jubilant HollisterStier, launched a new $132 million Sterile Fill & Finish line in Spokane, boosting US CDMO capacity, driving revenue growth, and strengthening global market positioning. Can Jubilant Pharmova Outpace Global CDMO Competition?
The pharmaceutical contract manufacturing sector witnessed a notable uptick today, driven by a major capacity expansion by a leading North American CDMO. Jubilant Pharmova’s wholly-owned subsidiary, Jubilant HollisterStier, launched a new Sterile Fill & Finish line, boosting onshore capacity and strengthening its positioning among global peers. The expansion signals growing investor confidence amid robust demand from large innovator pharma companies and heightened focus on US-based manufacturing.
Jubilant Pharmova Limited, with a market capitalization of Rs. 17,874.53 Cr, opened at Rs. 1,099.15 and touched a high of Rs. 1,134 against a previous close of Rs. 1,095.70, marking an intraday increase of approximately 3.44 percent.
Jubilant HollisterStier Launches New Isolator Line in Spokane
Jubilant Pharmova Limited today announced that its wholly-owned subsidiary, Jubilant HollisterStier LLC (JHS), a leading North American pharmaceutical contract manufacturer specializing in sterile injectables for global innovator pharma companies, has successfully launched a new Sterile Fill & Finish line, the third at its Spokane Manufacturing Facility in Washington, US.
The inaugural batch has already been produced, marking the start of revenue generation from the new line. This milestone represents a major step in JHS’s multi-phase expansion plan, adding 50 percent additional capacity at the Spokane facility.
The new line incorporates advanced isolator technology to provide higher sterility assurance, operational precision, and increased throughput. Designed to comply with the highest global regulatory standards, it strengthens JHS’s capabilities in handling complex injectable programs across diverse therapeutic areas. The USD 132 million investment in this third line underscores the Company’s commitment to innovation, quality, and supply chain resilience.
With the upcoming commissioning of a fourth line, JHS is set to double its total sterile injectable manufacturing capacity at the Spokane facility. This strategic expansion reinforces JHS’s leadership in domestic US pharmaceutical manufacturing, supporting national health security by reducing dependence on offshore supply chains and creating a more resilient and agile manufacturing ecosystem.
Jubilant HollisterStier LLC operates as a subsidiary of Jubilant Pharma Holding Inc., itself wholly owned by Jubilant Pharmova Limited. JHS is a leading Contract Development & Manufacturing Organisation (CDMO), offering comprehensive sterile fill-finish, lyophilization, and ophthalmic manufacturing services.
With decades of expertise and advanced facilities in Spokane, Washington, and Montréal, Québec, JHS delivers high-quality pharmaceutical products that meet rigorous global healthcare standards. Its flexible partnership model enables clients to accelerate product launches while maintaining full regulatory compliance and manufacturing excellence.
Comments from the Management
Commenting on the development, Chris Preti, CEO – CDMO Sterile Injectables said, “Launching our Third Line is more than a milestone for us—it’s a defining moment in Jubilant HollisterStier’s journey.
This expansion also reflects our deep-rooted commitment to continued growth, technological excellence and the community at Spokane. With Third Line now operational and Fourth Line on the horizon, we are not just doubling our capacity, we’re building a future that will create hundreds of new jobs, strengthen the US pharmaceutical supply chain and reaffirm our role as a trusted partner in delivering life-saving therapies to patients around the world.
” He further added, “In the wake of new tariffs imposed by the US Government, large innovator pharma companies are looking for high quality, US manufacturing facilities. Therefore, we are witnessing a very strong traction in Requests for Proposals (RFPs) for the New Line. We expect to reach full utilisation for the New Line in the next 3 years.”
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How Did the CDMO Sterile Injectables Segment Perform in Q1FY26?
Jubilant Pharmova’s CDMO Sterile Injectables segment reported Q1FY26 revenue growth of 14 percent to Rs. 370 Cr, driven by higher sales volume. EBITDA rose by 9 percent to Rs. 62 Cr, although margins declined QoQ due to an annual maintenance shutdown at the Spokane facility.
Large innovator pharma companies are increasingly seeking alternate US manufacturing sites as a risk management strategy amid potential tariffs, resulting in strong request for proposal traction for Line 3, including from Big Pharma.
The Company expects to reach peak utilisation for Line 3 within three years of commercial production, faster than the previously expected four years. The Montreal facility continued operations smoothly following corrective and preventive actions.
Capex-Led Growth Outlook for CSI and CRDMO Businesses
Fitch reports that the Contract Sterile Injectables (CSI) and CRDMO segments are expected to drive growth for Jubilant Pharmova in FY26. JPM plans to incur capex of about USD285 million and about USD40 million for the CDMO and CRDMO businesses, respectively, over FY23-FYE26.
Revenue from the expanded CDMO capacity will begin accruing from FY26. The CDMO Sterile Injectables segment has seen strong order book traction led by multinational pharma companies in the US and Europe.
Capex in the CSI business is supported by improved visibility of injectable orders, with a projected global demand-supply gap of 700 million vials in 2027 and numerous drug and biologic patent expiries.
Tough-to-Enter Market Segment
The Sterile Injectable CDMO market has significant entry barriers. Most commercial contracts are long-term, typically three years or more with automatic renewal. Greenfield expansions require substantial upfront capex and ongoing operating expenditure.
Innovator companies prefer US-based manufacturers with strong quality track records due to supply challenges. Specialized technologies, such as isolator technology and multi-dose preservative-free ophthalmic drops, create niche opportunities but require advanced capabilities and capital investment. High switching costs for clients, long tech transfer timelines, and stringent regulatory requirements further limit competition.
Financial Snapshot – Q1 Summary
Quarter-on-Quarter: Sales decreased from Rs. 1,929 Cr to Rs. 1,901 Cr, down 1.45 percent. Operating profit fell from Rs. 345 Cr to Rs. 290 Cr, a decline of 15.94 percent. PBT dropped from Rs. 206 Cr to Rs. 154 Cr, down 25.24 percent. Net profit fell from Rs. 151 Cr to Rs. 102 Cr, a decline of 32.45 percent.
Year-on-Year: Sales grew from Rs. 1,732 Cr to Rs. 1,901 Cr, an increase of 9.79 percent. Operating profit rose from Rs. 252 Cr to Rs. 290 Cr, up 15.08 percent. PBT decreased from Rs. 500 Cr to Rs. 154 Cr, down 69.2 percent. Net profit fell from Rs. 482 Cr to Rs. 102 Cr, a decline of 78.84 percent.
About the Company
Jubilant Pharmova Limited (formerly Jubilant Life Sciences Limited) has a global presence with businesses spanning Radiopharma, Allergy Immunotherapy, CDMO Sterile Injectables, CRDMO, Generics, and Proprietary Novel Drugs.
The Radiopharma business manufactures and supplies radiopharmaceuticals through 45 US-based radiopharmacies. The Allergy Immunotherapy business produces allergic extracts and venom products in the US and select international markets.
Its CDMO Sterile Injectables division offers sterile fill and finish, lyophilization, ophthalmic manufacturing, and ampoule services. The CRDMO business provides contract research and development via centers in Bengaluru, Noida, and France, while the CDMO-API segment manufactures active pharmaceutical ingredients.
Jubilant Therapeutics develops novel therapies in oncology and autoimmune disorders. The Company operates multiple regulated-market facilities and employs around 5,500 people globally, recognized as a trusted partner by leading pharmaceutical companies worldwide.
Conclusion
Jubilant Pharmova’s $132 million investment in its Spokane facility clearly strengthens its position in the US Sterile Injectables segment, enhancing capacity, technological capabilities, and operational flexibility.
By adding a third isolator line and preparing for a fourth, the Company is poised to meet growing demand from large innovator pharma companies seeking reliable US-based manufacturing.
This expansion also positions Jubilant HollisterStier to capture higher order inflows and accelerate commercial production timelines, reflecting a measured but significant step toward leadership within the US CDMO market.
While the expansion bolsters Jubilant’s competitiveness, outpacing broader CDMO competition globally will depend on multiple factors, including regulatory approvals, client acquisition, and market dynamics across other regions.
Nevertheless, the combination of advanced infrastructure, strong order traction, and capex-led growth plans provides Jubilant Pharmova with a strategic advantage in a high-barrier segment, enabling it to gradually enhance its market share and strengthen its role as a trusted partner for sterile injectable manufacturing in the US.
Written By Manan Gangwar
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