Macquarie Identifies Divi’s as Top Pick Amid Novo Manufacturing Shift
Macquarie Group has named Divi’s Laboratories as its top pick among Indian pharmaceutical companies, a designation driven by the evolving manufacturing strategies of Novo Nordisk. The investment bank highlighted that Novo Nordisk’s decision to expand its use of contract manufacturing organizations (CMOs) for peptide active pharmaceutical ingredient (API) synthesis reinforces the investment case for peptide CDMOs.
According to Macquarie, Novo Nordisk remains the largest participant in the GLP-1 market. The bank estimates that Novo holds approximately 51% of the market by volume and 37% by value in the first half of 2026. This dominant market position makes Novo’s supply chain decisions critical for potential manufacturing partners.
Macquarie stated that manufacturing costs are likely to be a decisive factor in determining which partners Novo selects for these expanded production needs. The bank’s research indicates that the shift toward external manufacturing partners represents a significant change from Novo’s long-standing vertically integrated model.
Novo Nordisk Expands External Manufacturing Capacity
Novo Nordisk has announced plans to utilize CMOs specifically for peptide API synthesis while simultaneously continuing to expand its internal manufacturing capacity. This dual approach marks a departure from previous operational norms where external partnerships were largely confined to fill-finish processes, packaging, and device assembly.
Under the company’s traditional model, API production remained an internal function. The new strategy involves bringing peptide synthesis into the contract manufacturing sphere, thereby opening opportunities for specialized CDMOs to participate in a larger portion of the production lifecycle.
Macquarie reported that this pivot strengthens the case for peptide CDMOs as key beneficiaries of Novo’s growth. The bank noted that cost efficiency will play a central role in the selection process for these new partnerships, given the scale of Novo’s operations in the GLP-1 sector.
Implications for Indian Pharmaceutical Sector
The identification of Divi’s Laboratories as Macquarie’s top pick underscores the potential impact of Novo’s manufacturing changes on the Indian pharmaceutical industry. As a leading CDMO, Divi’s is positioned to potentially benefit from the increased demand for peptide API synthesis services.
Macquarie’s assessment links the company’s preference directly to the broader trend of pharmaceutical manufacturers outsourcing complex synthesis tasks to specialized external providers. This shift allows large drug developers like Novo Nordisk to manage capacity constraints while maintaining control over final formulation and packaging stages internally.
The bank’s analysis suggests that as Novo continues to scale its GLP-1 offerings, the reliance on external partners for upstream manufacturing components will likely grow. This structural change in the supply chain is viewed by Macquarie as a positive indicator for companies with established capabilities in peptide synthesis and manufacturing.