GLP
Global Partners LP
stock NYSE

Count on Reta getting FDA approval through Lilly and it being the premier GLP. Mark my words

Count on Reta getting FDA approval through Lilly and it being the premier GLP. Mark my words

Hi chemical engineer in these CDMO markets specializing in peptides. I have designed, deployed, and actively run metric tonage of GLP production.
The CDMO model does not really capture the upside. If we look at three of the major EU-US facing players of which I have worked for all three... And they are vastly different from the chinese CDMO models.
Bachem (Public), Polypeptide (Public), Corden (private and just bought ambiopharm).
There is a bitch of a Catch 22 between the US-EU and Chinese CDMOs. On one hand the better regulatory and geopolitical enviroment prefers the EU-US models for engagement and product launch over chinese markets (or you see hybrid models like ambiopharma, do upstream in china then purify with final API in US). Which from a customer compliance perspective makes them more attractive. BUT that same enviroment carries the same heavy CAPEX overhead of traditional big-pharma, where as China just absolutely dominates in ability to scale capacity and deploy new capacity both raw and emerging platforms. But on the compliance side china is risky.
ANyway long story short, most of the EU-US facing CDMOs get a ton of what would be "profit" in CAPEX sharing where the big pharma invest in their product lines and the CDMOs after x amount of product get ownership of the equipment. IN theory so they can run multiproduct or return elsewhere.
Commercial contracts are strict around this and rarely are we able to capture the boom on pricing as we don't own the IP.
TLDR; as someone who's career has been in this CDMO world for peptides I wouldn't put a dollar into them and their public launches (literally was there through PPLs) are mainly mechanisms to raise capital (PPL for example to try launch commercial scale MFG in Belgium by buying the old Lonza facility... bad choice... bad bad choice).