In H1 2025, PolyPeptide generated EUR 167.1 million in revenue, driven mainly by metabolic therapeutics and representing a 23.7% increase versus H1 2024 or a 23.3% growth at constant currency rates. Commercial revenue increased by 37.9%, reflecting the ramp-up of the new large-scale capacity in Braine-l’Alleud, Belgium, as well as favorable market trends across PolyPeptide’s broad portfolio. Revenue from metabolic therapeutics grew 98.2% versus H1 2024, reaching 56.0% of total revenue. Development revenue increased by 4.1% versus H1 2024 based on continued demand across many therapeutic areas.
PolyPeptide’s diversified pipeline of active custom projects reflects its reputation and development capabilities with a strong exposure to metabolic therapeutics (including GLP-1 receptor agonist drugs), oncology and neurology. Furthermore, PolyPeptide refocused its half-year disclosure practice to better reflect the relevant drivers and trends1.
PolyPeptide’s gross profit and EBITDA continued to improve in H1 2025. Gross profit in H1 2025 was EUR 14.3 million versus EUR 10.5 million in H1 2024 and EBITDA was EUR 4.4 million versus EUR 2.9 million in H1 2024.
The increase in EBITDA was driven by higher sales (EUR +14.5 million), which was partially offset by an unfavorable product mix with higher material costs (EUR -5.2 million), and investments in FTEs to support our growth (EUR -4.5 million), mostly from the increase in average full-time equivalents (+7.0%) compared to H1 2024. Exceptional costs included ramp-up of the large-scale SPPS asset in Braine (EUR -2.0 million) and ERP-related investments (EUR -1.1 million).
The operating result (EBIT) in H1 2025 was EUR -13.7 million versus EUR -12.6 million in H1 2024. The financial result was EUR -17.3 million versus EUR 0.3 million in H1 2024, largely driven by an unfavorable revaluation impact on intra-Group positions due to foreign exchange movements (favorable impact in H1 2024). Interest expenses were stable compared to H1 2024.
The result for the period and deferred tax income resulted in an income tax benefit of EUR 4.5 million in H1 2025 versus EUR 0.9 million in H1 2024, bringing the result for H1 2025 to EUR -26.5 million versus EUR -11.4 million.
Net cash flows from operating activities reached EUR 49.7 million in H1 2025 versus EUR 0.5 million in H1 2024. Further prepayments received from customers (net inflows of EUR 27.7 million in H1 2025), as well as disciplined working capital management offset the buildup of inventory to support the planned growth in H2 2025.
Net cash flows from investing activities were EUR -50.8 million versus EUR -32.2 million in H1 2024, bringing the free cash flow to EUR +0.5 million. Cash and cash equivalents at the end of H1 2025 reached EUR 76.7 million versus EUR 48.5 million at the end of H1 2024 and EUR 68.3 million at the end of 2024. PolyPeptide announced the expansion of its existing credit facilities in May 2025. As at the end of H1 2025, EUR 60 million of the committed EUR 151 million were drawn from the revolving credit facility.
During H1 2025, PolyPeptide continued to focus on its capacity expansion strategy across the site network by implementing its advanced proprietary technology with an integrated engineering design, advanced automation and process control to ensure high productivity, safety, and sustainability. Overall, capital expenditures reached EUR 46.1 million or 27.6% of revenue (15.2% in H1 2024) with some highlights including:
In H1, commercial production at the new large-scale SPPS capacity in Braine-l’Alleud, Belgium progressed according to plan, in line to achieve target utilization rate by end of 2025. Further, PolyPeptide, progressed its global capacity expansions, and the doubling of solid-phase peptide synthesis (SPPS) capacity at its manufacturing site in Malmö, Sweden, including the implementation of a new tank farm. PolyPeptide continues to sharpen its value proposition and superior development capabilities through the deployment of a modular approach to support a large commercial GLP-1 contract.
To enhance PolyPeptide’s scalability, a new provider has been selected for the future ERP system to bolster the Group’s control mechanisms. To mobilize the program, technical experts are being hired in H2 to drive the ERP implementation and to support a seamless rollout across all sites.
As we expand our commercial business and with the continued importance of large-pharma customers, we maintain our focus on our talent agenda.
In H1 2025, we enhanced our capabilities in production, operational excellence, engineering, ERP, development, supply chain and quality management, by strengthening our organization, further deepening our CDMO and peptide manufacturing expertise at global and local level.
We are especially pleased to announce the appointment of Raoul Bernhardt as Chief Manufacturing and Supply Chain Officer and member of the Executive Committee, succeeding Jens Fricke. Mr. Bernhardt brings with him 30+ years of international experience in various senior roles in operations and supply chain management, including his deep experience as former Vice President at Catalent Pharma Solutions, a CDMO. He will continue to drive PolyPeptide’s operations and supply chain excellence agenda. Jens Fricke remains in the Group and will oversee the multi-site capacity expansion programs.
PolyPeptide follows an integrated approach for the management of environmental, social and governance (ESG) topics that are considered material to its business. PolyPeptide continues to prepare for the enhanced disclosure requirements for the financial year 2025 under the Corporate Sustainability Reporting Directive of the European Union (CSRD) and the European Sustainability Reporting Standards (ESRS), with the intention of transitioning to an ESRS Sustainability Statement.
In March 2025, PolyPeptide received the outcome of its latest Carbon Disclosure Project (CDP) assessment and received a B score. For the third consecutive year, the Group was able to improve its climate rating. In July, PolyPeptide received the results of the EcoVadis Group Evaluation 2025 and was awarded silver status, representing a further improvement over the 2024 score with progress noted over all four evaluation areas which include environment, ethics, labour & human rights and sustainable procurement. PolyPeptide also continues the work on the transition plan including Greenhouse Gas (GHG) reduction targets as announced in the climate report 2024.
In preparation for the enhanced disclosure requirements for the financial year 2025, PolyPeptide conducted a double materiality assessment (DMA), which considered the entire value chain, including the Group’s upstream and downstream value chain, its own activities and reflecting input from key stakeholder groups interviewed during the process. Details of the impacts, risks and opportunities of these material topics will be disclosed in the Sustainability Statement 2025, which will be published as part of the Annual Report 2025.
On the back of the operational progress made in H1 2025 and robust customer demand, PolyPeptide revises its guidance for the full-year 2025 towards the upper end of the range. It now expects:
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Previous |
Revised |
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|
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Revenue growth vs 2024 (at constant currency rates) |
10-20% |
13-20% |
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EBITDA margin |
Increasing vs 2024 |
High single-digit / low double-digit |
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Capital expenditures |
~20% of revenue |
EUR ~100m |
The revised guidance for 2025 assumes that revenue in H2 2025 will exceed the revenue in H1 2025 and that the ramp-up of the new large-scale asset in Braine-l’Alleud, Belgium, continues to be on track. PolyPeptide’s priorities for 2025 remain to ramp up its new large-scale facility in Braine-l’Alleud to its target utilization rate by the end of the year, execute its operational and quality excellence programs, and advance its customer contractual partnerships, while executing on the capacity expansions across its multi-site network.
According to Evaluate Pharma (accessed June 2025), the global peptide therapeutics market has been valued at approximately USD 59 billion in 2024 and is projected to reach approximately USD 162 billion by 2030 with a compound annual growth rate (CAGR) of above 15% from 2024 to 2030.
PolyPeptide believes that the main growth driver is the increasing demand for peptide-based therapies for metabolic disorders, in particular for the treatment of diabetes, obesity, and other co-morbidities.
The advancement of hundreds of pre-clinical and clinical development projects in other therapeutic areas, including oncology, infectious diseases, orphan diseases, cardiovascular, neurology, or gastro-enterology applications, is expected to complement the growth beyond metabolic disorders. We observe that the global drug development landscape remains focused on synthetic peptides with complex molecular structures and novel formulation technologies, including oral peptides. In addition, we continue to observe a strong outsourcing trend based on the high degree of specialized knowledge involved in chemical synthesis, customers’ geopolitical considerations and the current macro-economic environment.
With a history of over 70 years and a strong manufacturing track record with over 1,000 distinct therapeutic peptides manufactured for customers, we are convinced that PolyPeptide is well positioned to successfully compete in this market. PolyPeptide’s customer proximity driven by its multi-site network and a culture of agility and responsiveness are reflected in its rich pipeline of active custom and commercial projects with large exposure to GLP-1 and the metabolic opportunity.
In H1 2025, we continued to focus on the execution of our growth strategy across our global multi-site network. Our vision is to be the most innovative peptide CDMO by shaping the future of peptide drug manufacturing and contributing to the health of millions of patients across the world. Polypeptide’s strategy aims to strengthen both its foundations and competitive advantages:
We believe the execution of this strategy will enable PolyPeptide to offer its customers a distinctive value proposition that further differentiates it from the competition. The Group’s strategy includes transformational elements to adapt to evolving customer needs and to enhance its industrial-scale capabilities. As a result, PolyPeptide strives to advance its peptide manufacturing practices through efficient and sustainable ways of working and new proprietary technologies.
PolyPeptide confirms its target to double revenue reported for 2023 by 2028. Revenue growth projections are supported by commitments and supply forecasts of existing customers.
Profitability is expected to approach an EBITDA margin of 25% by 2028, driven by growth initiatives, improving profitability in the existing base business with higher asset utilization and efficiency, as well as operating leverage.
Over the mid-term horizon and on average, PolyPeptide expects capital expenditures of 15% to 20% of revenue to ensure capacity also beyond 2028. Large capacity expansions are expected to be made in close collaboration with the Group’s customers and including long-term commitments through financing support (prepayments or other structures). Investment phasing may lead to capital expenditures above the indicated range in a given year, depending on the opportunities that arise. The Group’s long-term lifecycle management Capex is generally expected to be between 4-6% of revenue.
PolyPeptide’s guidance and mid-term outlook assumes no unexpected adverse events.