With biopharma companies increasingly outsourcing production, contract development and manufacturing organizations (CDMOs) are investing in European active pharmaceutical ingredient (API) capacity to meet growing demand and mitigate supply chain risks, according to an analysis by data and analytics firm GlobalData.

In Europe, GlobalData contends recent CDMO investment in API capabilities has two main drivers: evolving demand and sensitive supply chains.

“GLP-1s, peptides, biologics and other advanced therapies require more specialized manufacturing than many traditional medicines,” Edita Hamzic, healthcare analyst at GlobalData, said in a statement. “Supply chains have become more sensitive to disruption risks; building capacity closer to European customers can provide greater supply security.”

A separate report from market research firm S&S Insider cites geopolitical and logistics disruptions as making supply chain resilience a key consideration. The firm estimates the global API CDMO market will reach $260.7 billion by 2035, growing at an 8.1% compound annual growth rate, driven in part by antibody-drug conjugates (ADCs), highly potent APIs (HPAPIs), biologics, continuous manufacturing, and investment in specialized CDMOs.

Europe’s API CDMO Market was valued at nearly $36 billion in 2025 and is projected to reach more than $76.2 billion by 2035, growing at a compound annual growth rate of 7.8% during the forecast period as ADC and HPAPI outsourcing reshapes oncology manufacturing, according to S&S Insider.

Last month, SK pharmteco completed two facility expansions at its Swords, Ireland manufacturing campus, adding commercial-scale small molecule API capacity and a kilo-scale facility for HPAPIs and ADC payloads.

In June, Lonza announced plans to expand the HPAPI capacity at its Visp, Switzerland site, focusing on ADC payload-linker capabilities. Lonza’s investment is meant to augment its integrated ADC offering and commercial-scale supply of highly potent payload-linker molecules.

Earlier this year, Axplora announced a $60 million investment to expand HPAPI development and manufacturing at its Farmabios site in Gropello Cairoli, Italy, including the construction of a new 4,500-square-meter research and development (R&D) and laboratory hub.

Cambrex and Bachem API investments

GlobalData’s analysis noted that CDMOs are boosting their infrastructure in Europe as they position themselves to develop and supply newer, more complex medicines.

The firm called out four recent CDMO API investments including New Jersey-based Cambrex’s $30 million expansion at its Milan, Italy site, which will add analytical development and process R&D capabilities — while upgrading production facilities — to support increasingly complex small-molecule programs including manufacturing.

“The project will add analytical development and process R&D capabilities and upgrade existing production plants, with completion expected in H2 2027,” GlobalData said. “Cambrex has also acquired adjacent land for future expansion. The investment will support the earlier stages of drug development and strengthen Cambrex’s ability to develop and scale complex small-molecule APIs before they reach commercial production.”

GlobalData also pointed to Bachem’s plans to invest more than CHF500 million (approximately $609 million) in a new large-scale production facility at Sisslerfeld in Eiken, Switzerland — driven by demand for peptide APIs, particularly GLP-1 drugs for obesity and diabetes.

Swiss-based Bachem is rolling out a series of facility expansions across its network in response to the rapidly growing global demand for peptide and oligonucleotide active ingredients. At its headquarters in Bubendorf, the company built a new manufacturing facility known as Building K which was inaugurated in April 2026 and is designed for large-scale production of modern APIs.

Bachem expects larger indications and volumes will drive the market for oligonucleotides in the next couple of years. A recent report from MarketsandMarkets estimates the global oligonucleotide CDMO market will grow from $2.51 billion in 2024 to $6.73 billion by 2029, with a compound annual growth rate of 21.8% during the forecast period.

According to the report, the leading companies in the oligonucleotide CDMO market include Agilent Technologies, Bachem, Lonza, Thermo Fisher Scientific, and WuXi AppTec.

“These companies are expanding manufacturing capabilities, investing in advanced oligonucleotide technologies, and pursuing strategic collaborations to strengthen their market positions,” the MarketsandMarkets report concluded.