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like he did with werewolves
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Hm, where is that stated?
Concerning the creation of dragons, the closest Tolkien ever came to describing it (that I know) is in the Book of lost tales, relating to the fall of Gondolin:
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Therefore [Maeglin] counselled Melko to devise out of his sorceries a succour for his warriors in their endeavour. From the greatness of his wealth of metals and his powers of fire he bid him make beasts like snakes and dragons of irresistible might that should overcreep the Encircling Hills and lap that plain and its fair city in flame and death.
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