According to a report by McKinsey & Company, India is projected to secure 8-10% of the global work share outsourced to Contract Research Development & Manufacturing Organizations (CDMOs) by 2033. This forecast arises from a notable shift of outsourcing activities from the EU and US towards Asian countries, with India and South Korea emerging as key players.
The global CDMO sector, currently valued at approximately $224 billion, is expected to grow to $465 billion by 2032. The McKinsey analysis highlights that the changing geopolitical landscape is prompting Indian CRDMOs to anticipate that 20-40% of their future business will be influenced by these global shifts.
Anirudh Roy Popli, a Partner at McKinsey & Company, emphasized that the biopharma industry is increasingly acknowledging the advantages that Indian CDMOs offer. He noted that with their strong focus on innovation and value, Indian CDMOs are well-equipped to influence the future of healthcare.
Prem Pavoor, Senior Partner at Eight Roads Ventures, remarked that the current geopolitical environment and upcoming legislative changes present a transformative opportunity for the Indian CDMO sector. He mentioned that leading Indian biopharmaceutical companies are already receiving more requests for proposals, particularly from US clients. While these clients are currently taking a cautious approach, there is a clear trend towards diversifying outsourcing strategies amidst global uncertainties.
This scenario creates significant opportunities for Indian CDMOs, but it also poses challenges. Pavoor cautioned that Indian CDMOs must enhance their infrastructure and services to meet the anticipated increase in demand.
