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Western Pharma Companies Pivot to India Amid China Concerns

Despite Quality Concerns, Indian Drug Manufacturers See Increased Interest and Strong Growth

  • 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.
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