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India's CDMOs Shift to Strategic Partnerships
18 Feb
Summary
- Indian CDMOs are moving from manufacturing to strategic partnerships.
- The long-term growth outlook for India's CDMO sector is strong.
- Geopolitical shifts are driving global supply chain diversification.
The Indian contract development and manufacturing (CDMO) sector is undergoing a significant structural transformation. Companies are evolving from purely tactical manufacturing roles to becoming strategic partners for global pharmaceutical firms. This shift is expected to fuel a multi-year growth cycle for the industry over the next five to ten years.
While short-term performance may exhibit quarterly fluctuations due to the inherent variability in molecule development and regulatory approvals, industry leaders emphasize a positive long-term growth outlook. Investors are advised to focus on the sustained development of capacity and customer relationships rather than short-term business indicators.
Furthermore, global pharmaceutical supply chains are increasingly prioritizing geographic diversification. This trend is driven by geopolitical considerations and risk management strategies, aiming to create more resilient and stable supply networks worldwide.
