Global pharmaceutical companies are taking a cautious approach to major outsourcing decisions, delaying commitments until there is greater clarity on US policy. Piramal Pharma, however, remains optimistic that its geographically diverse network—spanning the US, United Kingdom, and India—will position it well once the landscape stabilizes.
“Decision-making is prolonged,” informed Piramal Pharma Chairperson Nandini Piramal. “We’ve seen an increase in RFPs (requests for proposals), but clients are holding off until there’s more certainty,” she explained. “Our network offers capacity and capabilities across key markets, so once companies decide on their preferred location, we’re ready,” Piramal added.
US Directives Cast a Shadow on CDMOs
Recent policy signals from the US, including calls for domestic drug manufacturing and global price alignment for branded drugs, have created a ripple of hesitation across the pharmaceutical sector. These directives—introduced under President Donald Trump’s administration—have made it harder for contract development and manufacturing organizations (CDMOs) to secure new business from their global pharma clients.
Muted Growth Ahead, Recovery Expected by FY27
With many companies still assessing the impact of shifting US policies, Piramal Pharma anticipates a subdued growth trajectory in the short term. “We expect FY26 to see muted growth due to ongoing policy uncertainty and delayed decision-making,” said Piramal. However, she expressed confidence in a strong rebound by FY27 as the environment stabilizes and client commitments resume.
Strong FY25 Performance and Future Roadmap
Despite the industry headwinds, Piramal Pharma reported a robust performance in FY25, closing the year with ₹9,151 crore in revenue—a 12% increase over the previous year’s ₹8,171 crore. The CDMO business contributed significantly, bringing in ₹5,447 crore, up 15% year-on-year.
“FY25 was a steady year. We crossed the $1 billion revenue milestone with 12% year-on-year growth, a 17% EBITDA margin, and a fivefold increase in net profits, all in line with our guidance,” Piramal noted.
Strategic Investments in the US
As reported by thehindubusinessline.com, looking ahead, the company is reinforcing its US presence with a $90 million investment to expand two of its manufacturing facilities. This move aligns with its long-term goal of becoming a $2 billion revenue company by FY2030.
