Piramal Pharma Plans Major US Expansion with $90 Million Investment

Piramal Pharma Limited has announced a $90 million investment across two of its US manufacturing sites – Lexington, Kentucky, and Riverview, Michigan. The announcement was made in conjunction with the 2025 SelectUSA Investment Summit. This expansion is part of the company’s response to increased demand from US clients and the wider shift toward onshoring pharmaceutical supply chains.

As of 10:19 AM on May 13, 2025, Piramal Pharma share price was trading at ₹217.11, a 2.41% increase,  with a -18.25% decline over the past six months and a 37.68% rise over the past year.

Lexington Expansion

The expansion of the Kentucky site, which was previously announced in September 2024, focuses on sterile injectable drug products, will undergo a brownfield expansion. This includes 24,000 square feet of additional manufacturing space, a new laboratory, and new equipment such as a filling line, two commercial-sized lyophilizers, a capping machine, and an external vial washer. Completion is targeted for late 2027.

Developments at the Riverview Site

The Riverview site in Michigan, which manufactures active pharmaceutical ingredients (APIs), including high-potency APIs, will receive upgrades through the addition of a commercial-scale suite. This new suite will support the development and production of payload-linker components used in antibody-drug conjugates (ADCs) and bioconjugate drugs. The facility is expected to be operational by the end of 2025.

Additional Context and Facilities

Since its entry into the US market, Piramal Pharma has invested $570 million in drug development and manufacturing infrastructure across the country. The company currently employs about 750 people in the US. Previous investments include facilities in Sellersville and Bethlehem, Pennsylvania.

Read more: Piramal Enterprises Faces ₹1,502 Crore GST Demand Notice Over Pharma Sale

Policy Environment

The investment announcement follows regulatory changes introduced by the US government, including an executive order on May 5 aimed at reducing certain barriers in drug manufacturing. This was followed by the FDA's May 6 announcement to expand unannounced inspections at foreign sites.

Conclusion

The $90 million expansion project will help increase Piramal Pharma’s US manufacturing capacity and support the production of injectable drugs and complex APIs. Both sites are expected to begin their expanded operations by 2027 and 2025, respectively.

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