Overview

• Western pharmaceutical companies are reducing their reliance on Chinese contractors for drug production and turning to India, despite concerns over quality and oversight.
• Indian Contract Development and Manufacturing Organisations (CDMOs) have seen increased interest and requests from Western companies, leading to strong profit growth.
• India's CDMO industry is expected to grow at a rate of more than 11% annually over the next five years, compared to China's estimated growth of 9.6%.
• Despite the shift, concerns over lax oversight in India persist, with calls for Indian CDMOs to improve their quality standards to match Western and Chinese ones.
• Major Indian CDMOs are expanding their manufacturing capacity to meet the growing demand.