Drug manufacturers are aiming to reduce their dependence on Chinese contractors involved in producing drugs for clinical trials and early-stage manufacturing. This shift is proving advantageous for competitors in India.
Despite being the preferred location for pharmaceutical services for nearly two decades due to cost efficiency and speed, the ongoing geopolitical tensions with China are prompting Western companies to diversify their supply chains.
As a result, some biotech firms are exploring the option of utilizing Indian manufacturers such as Syngene, Aragen Life Sciences, Piramal Pharma Solutions, and Sai Life Sciences for producing active pharmaceutical ingredients (API) in clinical trials and other outsourced activities. As reported by the japan times, Indian companies have reported increased interest and requests from Western pharmaceutical companies, including major multinational corporations.
Chinese Contract Development and Manufacturing Organizations (CDMOs) are well-established producers of biologic drugs, which necessitate a more rigorous regulatory approval process compared to conventional medications. India is actively pursuing a greater presence in the pharmaceutical services sector to enhance both sales and the reputation of its $42 billion pharmaceutical industry.
