PolyPeptide Strengthens Global Peptide Production With Modular Facility Design Approach

Baar - PolyPeptide Group AG (SIX: PPGN), a specialized, global CDMO for peptide-based active pharmaceutical ingredients, today announced the successful delivery and installation of pre-built modules at its Malmö, Sweden facility. This marks a key milestone in the company’s modular expansion project at the site, which aims to double its solid-phase peptide synthesis (SPPS) capacity.

The expansion, first announced in January 2025, is a central component of PolyPeptide’s mid-term strategy to meet rising global demand for peptide production. The EUR ~100 million metabolic program investment was largely funded by a large pharmaceutical partner and will create around 100 permanent new positions. It is anticipated that the expansion will be significantly faster than previous engineering projects due to the modular construction approach. Following installation, the modules will now undergo mechanical completion and automation, followed by qualification and commissioning.

“The Malmö expansion is a cornerstone of our mid-term growth strategy,” said Juan José González, CEO of PolyPeptide Group AG. “By leveraging modular construction and advanced automation, we’re accelerating capacity expansion to meet rising demand from key customers. This investment not only strengthens our position in the peptide CDMO market but also supports our ambition to double 2023 revenue by 2028 and deliver sustainable value to shareholders.”

Key Project Highlights:

• Accelerated timeline: The Malmö capacity expansion is on track to be faster than previous engineering expansions due to the modular approach
• Strategic partnership: The EUR ~100 million investment was largely funded by a large pharmaceutical player
• Modular construction: Pre-built manufacturing modules installed with proprietary manufacturing systems, delivered and installed on-site
• Operational continuity: Existing manufacturing operations remain uninterrupted
• Advanced technology: Integrated engineering, automation, and process control
• Quality assurance: All modules built to meet stringent pharmaceutical GMP standards

The additional capacity will primarily support one of PolyPeptide’s large commercial agreements, contributing to its long-term growth initiatives and capital deployment strategy. As communicated in its mid-term outlook, the company expects over the mid-term horizon and on average, capital expenditures of 15-20% of revenue to ensure capacity beyond 2028.