look news india
There is good news for the Indian pharmaceutical industry. India's pharma contract manufacturing business is expected to double in the next three years.
The credit for this goes to a move by the US. The US has paved the way for its own Biosecure Act. Its purpose is to prevent US federal government agencies from acquiring equipment and services from Chinese pharmaceutical companies.
However, according to some experts, this law does not guarantee benefits for local companies, as countries like Ireland and Singapore can provide tough competition. While there are about 120 drug projects in the US. Which are in various stages of development. Which may be affected by previous Chinese involvement. The grandfathering clause in the US law allows existing agreements with China to continue till 2032. This gives Indian companies time to prepare but also delays immediate financial benefits.
The head of the Pharma Industry Association said that the US decision could lead to a shift of manufacturing from China to India. Hence, the contract manufacturing segment will double in the next three years. The contract research segment may grow three times during this period. Experts said that the implementation of this law by the US will further accelerate the growth of contract development and manufacturing organizations (CDMOs) and contract research organizations (CROs) in India. For example, according to Mordor Intelligence, the contract manufacturing segment is estimated to be worth $22.51 billion in the year 2024. And it is expected to grow at a compound annual growth rate (CAGR) of 14.67 percent to reach $44.63 billion by 2029. Similarly, the CRO segment in India is growing at a CAGR of 10.75 percent. By 2030, it will reach $2.5 billion.
The CDMO segment is already well developed in India. But this move will act as a major catalyst for the industry and boost overall growth. Currently, China's CDMO industry has a global market share of eight per cent compared to India's 2.7 per cent. Experts said, this law is an opportunity for India's domestic pharma industry. Which can give share performance to China. Some reports suggest that there has already been a rise in inquiries from US companies for Indian companies. With 60 per cent of Indian pharma companies showing interest in new business interests.
Policy Booster Dose
The size of the global contract manufacturing segment is estimated to be US$22.51 billion in the year 2024.
The growth size is expected to reach US$44.63 billion by 2029 with a CAGR of 14.67 percent.
China's CDMO industry currently has a global market share of 8 per cent, compared to India's 2.7 per cent.
Increase in inquiries from Indian pharma companies to their US counterparts
60 percent of Indian pharma companies expressed interest in new business interests