Indian contract manufacturer Jubilant Organosys has bagged $60m (€45m) worth of contracts with pharma companies - a 50 per cent jump on last year - the firm revealed yesterday.
The company said that a substantial portion of these new deals - $54m - comes from Europe and the US, two markets which represent a focus area of growth for Jubilant, although, it would not disclose the new clients' names for confidentiality reasons.
These new annual contracts represent a 50 per cent increase over the $40m-worth of deals that the firm signed last year, R. Sankaraiah, Jubilant's chief financial officer, told Outsourcing-Pharma.com.
The remaining $6m contracts come from unregulated markets - particularly China - as well as lndia.
"India offers distinct economic advantages to large pharmaceutical companies who are looking to shorten their time-to-market on new products, at a reduced cost," Sankaraiah said.
These benefits, according to Jubilant, include lesser labour costs, lower manufacturing costs while maintaining quality and a large pool of patients for clinical trials.
The firm added that what enables India to stay ahead of the game compared to China, for example, is that Indian companies have better regulatory skills, such as intellectual property rights (IPR) adherence.
"These advantages, coupled with increased credibility and visibility, are bound to make India's share of the global outsourcing pie grow rapidly," said Sankaraiah.
Indeed, under the country's 25-year process patent system, Indian companies have particularly perfected their scientific, technical and manufacturing skills to match the requirements of global drugmakers that are increasingly seeking to offshore many manufacturing activities previously performed in-house.
What is more, the Asian region has recently been challenging the US and Europe's traditional supremacy of the global pharmaceutical contract manufacturing market.
According to a recent F&S report, India and China could potentially account for 35 percent to 40 percent of the outsourced market share for APIs, finished dosage formulations and intermediates.
Jubilant now plans to capitalise on the outsourcing opportunities. Over the years, the company has transformed from being a chemical company to a pharma company with focus on custom research and manufacturing services (CRAMS) and is now the largest CRAMS player in India.