Indian CRDMOs See Growth as Global Pharma Diversifies Operations

New Delhi: Indian Contract Research and Development and Manufacturing Organizations (CRDMOs) are gaining momentum as global pharmaceutical companies expand operations geographically, according to a report by Jefferies. Indian firms specializing in small molecule development are well-positioned to capitalize on this trend.

The report identified key players, including Piramal Pharma, Syngene, Laurus Labs, Cohance, and Gland Pharma, as beneficiaries of this shift. However, it noted that many projects are still in clinical stages, leading to uneven short-term growth.

Demand for antibody-drug conjugate (ADC) services is on the rise, with Indian CRDMOs exploring opportunities in this area. Additionally, GLP-1 drugs for diabetes and obesity are expected to become a significant growth driver for generic manufacturers starting in 2026.

Key updates from major players:

• Piramal Pharma aims for a 13-15% CAGR in sales over the next five years, despite temporary destocking challenges.
• Syngene expects low growth in FY26 due to destocking but anticipates a double-digit rebound in subsequent years.
• Laurus Labs is managing seven active global projects, with 70-80% of its CDMO sales coming from commercial molecules.
• Gland Pharma is increasing its GLP-1 cartridge capacity from 40 million to 140 million units by next year.

While short-term hurdles remain, the report predicts long-term momentum for Indian CRDMOs as they continue to expand capabilities and attract global clients.