India's CDMOs Target High-Margin ADC Market

Indian CDMOs are increasingly targeting the specialized and high-value Antibody-Drug Conjugate (ADC) manufacturing market. Piramal Pharma, Anthem Biosciences, and Cohance Lifesciences are among the key players, each pursuing distinct strategies to capitalize on this opportunity.

Piramal Pharma is constructing an integrated ADC manufacturing platform, encompassing payload-linker production, conjugation, and sterile drug-product manufacturing. This is complemented by biologics capabilities acquired through Yapan Bio. The company's ADCelerate platform includes conjugation at Grangemouth, UK, and expanded payload-linker development in Riverview, Michigan, with ongoing sterile injectable manufacturing expansion in Lexington, Kentucky.

Anthem Biosciences is integrating ADC programs within its broader CRDMO business, which already includes numerous early and late-stage molecules. The company benefits from significant order book visibility and is expanding its manufacturing capacity with new units dedicated to custom synthesis and fermentation. This approach allows ADC development to progress within an established network of customer engagement and manufacturing infrastructure.

Cohance Lifesciences is focusing on specialized ADC capabilities, particularly in payloads and linkers like MMAE and Exatecan, catering to demand for alternatives to Chinese suppliers. Its US-based cGMP expansion aims to support ADC supply through Phase 2b by FY27. The company is also developing bioconjugation and drug-product manufacturing capabilities through NJ Bio.

The ADC manufacturing segment offers substantial high-margin opportunities within the Contract Research, Development, and Manufacturing Organization (CRDMO) business. Jefferies reported strong revenue and EBITDA growth in the CRDMO segment in Q1 FY27, with Piramal Pharma showing improved EBITDA margins. The complexity of ADC production, involving specialized steps like payload chemistry, conjugation, and biologics manufacturing, allows CDMOs with diverse capabilities to retain more work across a molecule's development lifecycle.

The next few quarters will be crucial as these companies move from capacity building to customer conversion. Piramal aims to make its integrated offering commercially viable, Anthem seeks to advance ADC programs through its existing CRDMO engine, and Cohance is deepening its specialized ADC capabilities while rebuilding its broader CDMO operations. The success of these distinct bets will determine which players translate their capabilities into repeat programs and commercial manufacturing contracts.