Boom times continue for Indian CMOs
That represents an annual growth rate of more than 40 per cent, according to the figures, which come from Cygnus Industry Insight.
In 2007 the Indian contract market was valued at $869m, and consisted mainly of companies manufacturing older, generic molecules, some specialised generics and custom synthesis and scale-up of in-patent drugs.
With 75 facilities inspected by the US Food and Drug Administration (FDA), the highest number of any country outside the US, the country now accounts for 46 per cent of all the drug master files (DMFs) submitted to the agency.
But despite these strong credentials, “more investments need to be channeled into this industry to scale up the operational and regulatory infrastructure in order to ... seize a larger share of the market opportunity.”
The larger and more experienced contract research and manufacturing services (CRAMS) companies, such as Strides Arcolab, Dishman, Jubilant Organosys, Shasun and Cadila, are starting to acquire more sophisticated technologies in order to move up the pharma value chain, says KPMG.
That entails a shift from the manufacturing of APIs and intermediates, sold and liquid dosage forms and simple vaccines to more complex products such as injectables, biologics and other specialty medicines.
Much has been written about the possibility that China will start to encroach on India’s territory in pharmaceutical outsourcing, but KPMG believes India has a head start of three to five years over China in manufacturing formulations.
Another emerging competitor, Eastern Europe, is losing ground as escalating costs undermine earlier advantages, it said.
Additional information from the report, and particularly India’s emergence as a hub for clinical testing services, will be published in a future edition of Outsourcing-Pharma.com.
