Replay: PPGN: Barclays Conversations with the C-Suite in European Healthcare 2026

Research evidence excerpt

Replay: PPGN: Barclays Conversations with the C-Suite in European Healthcare 2026

nt emphasized diversification across

molecules, customers, and modalities as an effective hedge against volatility in individual

GLP-1 assets (~37 assets in development). The CEO acknowledged emerging risks from small

molecules and pricing pressure but positioned these as manageable within a rapidly

expanding market. For investors, this suggests growth durability remains intact, even as the

competitive landscape broadens.

°° Discussing generic semaglutide GLP-1s, we note the CEO's perspective that reported $14/

vial pricing from Indian generic manufacturers, such as Natco, likely reflects pricing at or

below cost in order to gain share, and whether they succeed will depend on NOVO's

pricing.

•• Capacity expansion and operating leverage underpin mid-term upside – The outlook for

FY26 and beyond is increasingly driven by guided operational improvements (e.g. Braine

L'Alleud ramp in FY26, Malmö validation ongoing with FY27 ramp, yield gains), with

management highlighting significant embedded operating leverage as volumes scale.

Importantly, expansion is being funded through improving FCF and moderate leverage (target

~2x ND/EBITDA), limiting equity dilution risk. This combination supports a credible path to

strong revenue and margin expansion into the mid-term.

•• Structural tailwinds reinforce Western CDMO demand – External factors, particularly US

Biosecure dynamics and supply chain de-risking away from China, were highlighted as a

meaningful incremental demand driver for PPGN. At the same time, in-sourcing risk

continues to look limited given technical complexity and hybrid manufacturing trends at

large pharma. Together, this reinforces a favourable demand backdrop, with PPGN well