|
India's Contract Research, Development, and Manufacturing Organization (CRDMO) industry is on a strong growth trajectory, with its market size expected to double from the current approx. USD 7 billion to approx. USD 14 billion by 2028, according to a report by Macquarie Equity Research.
The industry is projected to grow at a 14 per cent compound annual growth rate (CAGR), driven by rising pharmaceutical outsourcing, regulatory support, and global supply chain restructuring. It said, "the Indian CRDMO industry, currently valued at around USD 7bn, is set to deliver a 14 pc CAGR to around USD 14bn by 2028. Furthermore, we believe that regulatory tailwinds, such as the US Biosecure Act, could accelerate this growth to a high-teens CAGR" CRDMO is a third-party company that provides services to pharmaceutical and biotechnology companies. CRDMOs help with all aspects of drug development and manufacturing. The report highlighted that India's CRDMO sector is at an inflexion point, benefiting from drug pricing pressures and geopolitical factors. As global pharmaceutical companies look for cost-effective and reliable manufacturing partners, India is emerging as a preferred destination for small-molecule drug development and production. Additionally, the report says that regulatory measures such as the US Biosecure Act could accelerate growth to a high-teens CAGR, potentially pushing the industry to USD 22 billion by 2030. These factors are leading to a shift in global pharmaceutical supply chains, reducing reliance on China. The broader Asia-Pacific pharmaceutical CDMO sector was valued at over USD 50 billion in 2023. This expansion is being driven by cost-effective manufacturing, increasing outsourcing trends, and geopolitical risks that are prompting companies to diversify supply chains. While China remains the largest player, India is increasingly becoming the preferred choice for pharmaceutical outsourcing due to multiple factors. Indian CDMOs offer a cost advantage of 30-40% compared to Western counterparts, making them an attractive option for global pharmaceutical firms. The country also has a strong regulatory track record, with approvals from global agencies such as the USFDA and EMA. Moreover, India's expertise in Active Pharmaceutical Ingredients (APIs), Highly Potent APIs (HPAPIs), and speciality chemicals further strengthens its position in the global pharmaceutical supply chain. With a favourable regulatory environment, cost advantages, and increasing global demand for outsourced pharmaceutical manufacturing, India's CRDMO sector is well-positioned for sustained growth in the coming years. (ANI)
|
