It’s undoubtedly a very interesting time for the global CRO industry. This is particularly true for CROs with locations across the world who have been able to leverage the talent available globally to support their customers’ projects. Ramesh Subramanian at Aragen talks about integrated CDMO growth will lead to patients seeing a record number of drugs making it to market.
Extract:
Integrated CDMO Growth Will Lead to Patients Seeing Record Number of Drugs Making it to Market
It’s undoubtedly a very interesting time for the global CRO industry. This is particularly true for CROs with locations across the world who have been able to leverage the talent available globally to support their customers’ projects. Leveraging on the macro changes in outsourcing in the last year, there has been significant capital flowing into life sciences industry, and every company, whether a large pharma or a young biotech company, has externalisation as a key element of its core growth plan. In 2020 alone, the industry attracted over $23B in venture investments. India has come a long way in creating world class infrastructure and offering cutting edge research; and is now seen as an attractive destination for companies in US/EU to outsource their outsourcing needs required to drive their discovery, development, and manufacturing projects.
Demand for outsourcing discovery is rapidly increasing driven by two complementary factors. Firstly, the rise in the number of R&D projects from small biotechs who contribute a significant potion to the growing product pipeline. Secondly, the global trend in de-risking the over dependence on China by big pharma companies. They see India as an alternate option which benefits the India CRO companies.
While it is true that some clinical and commercial manufacturing of APIs move back into the West, overall, there is not enough capacity within American and European contract providers to manufacture all steps of the APIs. This leads to two scenarios – one where all the synthesis steps of an API is made in India and the second approach where we see starting materials, intermediates, advanced intermediates, and regulated starting materials being supplied from Asia with final steps carried out in America or Europe. In summary, we expect India to grow and benefit from the expected growth in needs for discovery, development, API and Drug Product manufacturing.
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