Contract development and manufacturing organizations (CDMOs) are ramping up their active pharmaceutical ingredient (API) investments in Europe. A series of recent deals shows how companies are strengthening their infrastructure in the region, as they position themselves to develop and supply newer, more complex medicines, says GlobalData, a leading intelligence and productivity platform.

GlobalData’s monthly Bio/Pharmaceutical Outsourcing report reveals that the expansion of CDMO API capacity in Europe is taking place across several stages of the pharmaceutical value chain and has two main drivers: evolving demand and sensitive supply chains.

Edita Hamzic, Healthcare Analyst at GlobalData, says: “Demand is changing. GLP-1s, peptides, biologics and other advanced therapies require more specialized manufacturing than many traditional medicines. Supply chains have become more sensitive to disruption risks; building capacity closer to European customers can provide greater supply security.”

There were four API investments between July and August 2026. The largest commitment comes from Bachem, the Swiss peptide and oligonucleotide CDMO, which plans to invest more than CHF500 million (about $609 million) in a new large-scale production facility at Sisslerfeld in Eiken, Switzerland, its third Swiss site. The main driver is demand for peptide APIs, particularly the rapid growth of metabolic medicines such as GLP-1 drugs for obesity and diabetes.

Cambrex is investing $30 million in a new R&D facility at its Milan site. The project will add analytical development and process R&D capabilities and upgrade existing production plants, with completion expected in H2 2027. 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.

Théa Group and Unither Pharmaceuticals are developing a 20,000-square-meter facility in Gannat, France, with an investment of more than EUR140 million (about $161 million). Unlike a typical CDMO facility serving multiple customers, this site will be primarily dedicated to manufacture Théa’s sterile ophthalmic products for the French and wider European markets. The facility expands Théa’s European manufacturing capacity and supports its long-term growth.

Meanwhile, German pharma group Merck, which provides CDMO services on an ‘excess  capacity’ basis, has opened a EUR25 million (about $29 million) BioReliance testing facility in Darmstadt, Germany. The 2,000-square-meter site provides drug-substance and drug-product release testing and GMP-compliant stability studies for monoclonal antibodies and cell therapies for the company’s biopharmaceutical customers.

Hamzic concludes: “In addition to their importance to the companies concerned, the investments also have a strategic dimension for Europe as a whole. They will build specialized skills and jobs, strengthen pharmaceutical networks, and reduce the region’s dependence on outside manufacturing capacity.”