India is a global leader in the pharmaceutical industry, ranking third in pharmaceutical production by volume, and has evolved over time into a thriving industry growing at 9.43% CAGR in the last nine years. Indian pharma has a strong domestic market and a growing presence in international markets. The country is well-known for its high-quality, affordable medicines, as well as its expertise in the production of generic drugs. Indian drug and pharmaceutical exports totaled US$ 24.60 billion in FY22, up from US$ 24.44 billion in FY21.
Indian pharma sector supplies over 50% of the global demand for numerous vaccines, 40% in the USA for generic demand, and 25% in the UK for all medicine. The Indian domestic pharmaceutical sector comprises of 3,000 drug companies and ~10,500 manufacturing units. Globally, the Indian pharmaceutical sector is valued at US$ 42 billion. According to India Ratings & Research, the Indian pharmaceutical market revenue is expected to be over 12% Y-o-Y in FY22.
One of the key factors contributing to India’s success in the pharmaceutical sector is its strong outsourcing foundation. The Indian Contract Research & Manufacturing Organization (CRMO) market is highly fragmented, with the top vendors controlling a sizable portion of the total market. Aside from these major players, several emerging CRMOs like Zenvision Pharma are investing in innovation and partnership activities in order to increase their market share. In addition, India has a well-established network of contract manufacturing organizations (CMOs), contract research organizations (CROs), and research and development (R&D) facilities to meet global pharmaceutical demands.
With the increasing demand for outsourcing Contracts, Research and Manufacturing Outsourcing (CRMO) is becoming a much-preferred option for pharma companies. CRMO is optimal in order to save time and money, as well as to access specialized expertise or facilities that are not available in-house. CRMO can be a valuable tool for companies looking to bring new products to market quickly and efficiently.
Moreover, there are several benefits of outsourcing pharmaceutical manufacturing, including:
Cost savings: Outsourcing allows pharmaceutical companies to access lower-cost labor and production facilities, leading to cost savings on production and manufacturing activities.
Increased production capacity: By outsourcing, pharmaceutical companies can increase their production capacity without having to invest in new facilities or equipment.
Access to specialized expertise and technology: Outsourcing allows pharma companies to access specialized expertise and technology that may not be available in-house.
Improved product quality: Outsourcing to specialized and experienced manufacturing partners can help to improve the quality of pharmaceutical products.
Flexibility and scalability: Outsourcing allows’ pharma companies to be more flexible and scale-able, enabling them to respond quickly to changes in demand or market conditions.
Focus on core competencies: By outsourcing non-core activities, pharmaceutical companies can focus on their core competencies and areas of expertise.
Regulatory compliance: Outsourcing to experienced and reputable manufacturing partners can help to ensure that pharmaceutical products are manufactured in compliance with relevant regulations and standards.
The demand for CRMO service in India includes API & Intermediates and Finished Dose services. Over the few decades, India has significantly transitioned from pharmaceutical production to contract research & manufacturing. When it comes to manufacturing medical drugs and products, India has a significant advantage over nations such as Vietnam, China, and Ireland. This is due to the resources including cost-effective manpower, technically skilled workforce, and WHO-GMP-approved facilities.
The Indian government has also been prominent in taking steps to support the growth of the pharmaceutical industry, including providing incentives for R&D and promoting the export of Indian-made drugs. The government has also introduced policies to encourage the production of high-quality, affordable generic drugs and to boost domestic demand for pharmaceutical products.
Thus, with all these and much more, India is rightfully known as the “pharmacy of the world”.
(Source link for facts & numbers – https://www.ibef.org/industry/pharmaceutical-india )