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Get Ready India Because ‘The Future Is Big’

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India has a strong presence in the pharmaceutical industry’s Contract Development and Manufacturing Organization (CDMO) segment. Notably, it also offers world-class quality for pharma products at a low price, which opens opportunities for contract manufacturing, as it is among the fastest expanding areas of the pharmaceutical business.

Contract manufacturing for pharmaceuticals requires the use of innovative technologies to keep up with changing market trends. Today, the aim is to build supply chains with multiple facilities across locations to meet the rising and unpredictable demands.

The contract manufacturing market is estimated to grow to $157.7 billion in 2025, a compound annual growth rate (CAGR) of 6.9% since 2018, outpacing the pharmaceutical industry as a whole.

Here are some of the upcoming trends and opportunities in the sector:

Healthcare advancements driving facility divestment

The facility divestments of pharma firms shall impel outsourcing as well as contracts for products that will become generic or non-core, and novel product manufacturing where the pharma business lacks the manufacturing capabilities or knowledge. CMO’s have been increasingly acquiring or building biologics capabilities and capacity; however, because most of the biologics and advanced therapeutics are marketed by larger companies that are less likely to outsource, CMOs will have to find ways to entice these companies to achieve a good return on investment. 

Presently, we are already witnessing a significant shortage of critical pharma products in certain geographies. The CDMO, biopharma, and life science service industries are aiming to improve ATMP manufacturing processes, which include automation, modular facilities, improved upstream titers, and better downstream purification technologies.

Need for better controls

While time and money savings can be gained via multi-product facilities, this approach comes with its own set of problems, the most serious of which is the potential of cross-contamination. While contamination issues have long existed, the growing practice of outsourcing has increased the need for improved controls. Further, many of these facilities are modified and old and can pose a health risk. Such old facilities can also limit flexibility and adaptability, making one-way product flows difficult to construct. Because the pharmaceutical business is under such intense pressure to create life-saving drugs swiftly and cheaply, maintaining the aseptic process under such tight deadlines can be a challenge.

According to the EY and FICCI Indian Pharma report, as one of the top ten industries in lowering trade deficits and attracting foreign direct investment, the pharmaceutical industry has contributed majorly to India’s economic growth (FDI). Between April 2000 and June 2020, the medications and pharmaceuticals sector received a total of US$16.54 billion in FDI.

The road ahead

The evolution of CDMOs across geographic locations is due to the significant advancements made by the pharma sector. They will play a critical role in ensuring that pharma innovation, accessibility, and affordability are on par across geographies. However, this needs a holistic approach by key stakeholders in the industry.

In short, by looking at the rising FDIs and demands in the Indian Pharmaceutical Industry, we can say that the future is very bright indeed, with the system receiving a shot in arm after recent events.

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