EUROAPI to Reach 500 kg Peptide and Oligonucleotide Capacity Per Year in Frankfurt by 2025

• New state-of-the-art manufacturing equipment and targeted debottlenecking would increase overall peptide and oligonucleotide capacity of the Frankfurt site to circa 500 kilograms per year by 2025 and unlocks further scale-up in the future with limited investment
• Initial investment of €18 million to meet increasing market demand
• Expansion demonstrates company’s commitment to growth and leadership in differentiated CDMO segments of active pharmaceutical ingredients

PARIS–(BUSINESS WIRE)–Regulatory News:

EUROAPI (Paris:EAPI) announces an initial €18 million investment for the installation of new state-of-the-art manufacturing equipment at its Frankfurt site. With this project, EUROAPI expects to meet the growing Contract Development and Manufacturing Organization (CDMO) demand for peptides and oligonucleotides. It will bolster the company’s German operations and reinforce EUROAPI’s commitment to advancing innovation in differentiated segments of active pharmaceutical ingredients to serve the needs of both customers and patients.

The investment will be focused on the debottlenecking of the current capacity with the objective of increasing EUROAPI’s peptide and oligonucleotide output to circa 500 kilograms per year by 2025. This investment will be made in several stages, which will enable EUROAPI to gradually increase capacity over this period, with no downtime. Capacity could also be further enhanced in the future with additional limited investment.

“EUROAPI has a strong legacy in the development of peptides and oligonucleotides since 1976 and 2006 respectively, building upon a dedicated team of researchers and GMP manufacturers,” said Cécile Maupas, Chief CDMO Officer, EUROAPI. “Peptides and oligonucleotides constitute a growing market with limited available capacity; we expect this new equipment and debottlenecking to take us one step closer to being a market leader.”

By increasing its capacity, EUROAPI expects to meet demand for greater capacity associated with late stage products. It also aims at strengthening the company’s ability to be a long-term partner for pharmaceutical organizations at the forefront of research, offering services from early development through to the commercial stage for new therapeutic platforms.

Peptides and oligonucleotides are priority segments for EUROAPI’s CDMO business. The global peptide market is valued at €2 billion with an annual growth rate of +8-10%¹ and an outsourcing rate of 65%: circa 500 molecules are in development including 30 that are expected to be approved by 2025. The oligonucleotide market is growing even faster at a + 12-14%² rate and is almost entirely outsourced to CDMOs: circa 1,200 molecules are in development (including 1,000 in preclinical and phase I, with 200 in later phases). EUROAPI is well-equipped to manufacture the most complex peptides and oligonucleotides such as conjugated or pegylated ones. For context, since 2010 around 30% of peptides entering the clinical development phase have been conjugates. EUROAPI’s strategic ambition is to develop a one-stop-shop for these high growth molecules.

Peptides and oligonucleotides are large molecules with complex structures and various applications including oncology, genetic disorders, metabolic or infectious diseases and type 2 diabetes. Oligonucleotides are an emerging modality with the potential to treat or manage a wide range of diseases and address patients’ needs. EUROAPI is currently working on 14 CDMO large molecule projects (including peptides, oligonucleotides and lipids) as part of a portfolio of 64 projects, as of June 30, 2022.

About EUROAPI

EUROAPI is focused on reinventing active ingredient solutions to sustainably meet customers’ and patients’ needs around the world. We are a leading player in active pharmaceutical ingredients with approximately 200 products in our portfolio, offering a large span of technologies, while developing innovative molecules through our Contract Development and Manufacturing Organization (CDMO) activities.

Taking action for health by enabling access to essential therapies inspires our 3,350 people every day. With strong research and development capabilities and six manufacturing sites all located in Europe, EUROAPI ensures API manufacturing of the highest quality to supply customers in more than 80 countries. EUROAPI is listed on Euronext Paris; ISIN: FR0014008VX5; ticker: EAPI). Find out more at www.euroapi.com and follow us on LinkedIn.

Forward-Looking Statements

Certain information contained in this press release is forward looking and not historical data. These forward-looking statements are based on opinions, projections and current assumptions including, but not limited to, assumptions concerning the Group’s current and future strategy, financial and non-financial future results and the environment in which the Group operates, as well as events, operations, future services or product development and potential. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans” and similar expressions. Forward looking statements and information do not constitute guarantees of future performances, and are subject to known or unknown risks, uncertainties and other factors, a large number of which are difficult to predict and generally outside the control of the Group, which could cause actual results, performances or achievements, or the results of the sector or other events, to differ materially from those described or suggested by these forward-looking statements. These risks and uncertainties include those that are indicated and detailed in Chapter 3 “Risk factors relating to the issuer” of the prospectus approved by the French Financial Markets Authority (Autorité des marchés financiers, AMF) on March 31, 2022, under number 22-076. These forward-looking statements are given only as of the date of this press release and the Group expressly declines any obligation or commitment to publish updates or corrections of the forward-looking statements included in this press release in order to reflect any change affecting the forecasts or events, conditions or circumstances on which these forward-looking statements are based.

^1-2 2019A-2024E CAGR. Sources: company estimates, interviews with industry experts conducted in 2021, IQVIA & PharmaCompass statistics

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