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- US Biosecure Act Hits China, India Gains Biosecure Act Purpose US Federal
- To stop organizations receiving equipment, services from Chinese pharma companies
- As contract manufacturing shifted from China to India due to US decision
- The local research segment can also grow three times
There is good news for the Indian pharmaceutical industry. India's pharma contract manufacturing business has strong potential to double in the next three years.
Which is thanks to one of America's steps. America has paved the way for its own Biosecure Act. It aims to prohibit US federal government agencies from acquiring equipment and services from Chinese pharmaceutical companies.
However, according to some experts, this law does not guarantee benefits for local companies, as countries like Ireland and Singapore can provide stiff competition. While there are about 120 drug projects in the US. which are in various stages of development. which may be influenced by past Chinese involvement. A grandfathering clause in US law allows existing agreements with China to continue until 2032. Which gives Indian companies time to prepare but also delays immediate financial benefits.
The head of the Pharma Industry Association said that manufacturing may shift from China to India due to America's decision. So the contract manufacturing segment will double in the next three years. The contract research segment may grow threefold during this period. Experts said that the implementation of this law by the US will further accelerate the development of Contract Development and Manufacturing Organizations (CDMOs) and Contract Research Organizations (CROs) in India. For instance, according to Mordor Intelligence, the contract manufacturing segment is estimated to be worth $22.51 billion in the year 2024. And is expected to grow at a compound annual growth rate (CAGR) of 14.67 percent to reach $44.63 billion by 2029. Similarly, the CRO segment in India is growing at a CAGR of 10.75 percent. By 2030 it will reach 2.5 billion dollars.
The CDMO segment is already well developed in India. But the move will act as a major catalyst for the industry and boost overall growth. Currently China's CDMO industry has eight percent global market share compared to India's 2.7 percent. Experts said, this law is an opportunity for India's domestic pharma industry. Which can get China share performance. Some reports suggest that there has already been an increase in inquiries from American companies for Indian companies. With which 60 percent of Indian pharma companies have shown interest in new business interests.
Policy Booster Dose
The size of the global contract manufacturing segment is estimated to be USD 22.51 billion in the year 2024.
The growth size is expected to reach USD 44.63 billion by 2029 with a CAGR of 14.67 percent.
Currently China's CDMO industry has eight percent global market share compared to India's 2.7 percent
Increase in inquiries of Indian pharma companies from their American counterparts
60 percent of Indian pharma companies expressed interest in new business interests
