India’s Contract Drug Manufacturing Set to Grow at 18%: Jefferies

New Delhi, Aug 27 (KNN) India’s Contract Research, Development, and Manufacturing Organisation (CRDMO) sector, currently valued at around USD 3 billion, is set to grow rapidly in the coming years.

According to a report by Jefferies, the industry is expected to expand at an 18% compound annual growth rate (CAGR) from FY25 to FY30, outpacing the 14% growth seen over the past five years.

This growth is being driven by several key factors. Global pharmaceutical companies are increasingly adopting the “China+1” strategy, diversifying their supply chains to reduce dependence on China.

Additionally, rising demand for treatments targeting obesity and type 2 diabetes, along with advancements in antibody-drug conjugates (ADCs), is further boosting the sector. Indian CRDMOs are well-positioned to benefit from these trends due to their strong capabilities and established track record.

Over the years, India’s CRDMO industry has transformed from a secondary player into a strategic partner for global pharmaceutical innovators. This evolution has attracted significant investor interest, with the sector’s market capitalisation now estimated at $40–50 billion.

Companies like Sai Life Sciences, Cohance Lifesciences, Divi’s Laboratories, and Piramal Pharma are emerging as major global partners, benefiting from robust pipeline visibility and increasing demand for advanced therapies.

However, challenges such as the need for regulatory reforms and infrastructure improvements remain critical to sustaining competitiveness.

Analysts suggest that continued investment in innovation, technology, and manufacturing capacity will be crucial for India to solidify its position as a global leader in pharmaceutical manufacturing.

With strategic diversification and evolving treatment landscapes, India’s CRDMO sector is poised for a strong growth trajectory, offering significant opportunities for investors and global pharma partners alike.

(KNN Bureau)