China’s CDMO industry commands 8% global market share compared to India’s 2.7%
The Indian pharmaceutical industry’s contract manufacturing business is likely to double over the next three years as the US paves way for its Biosecure Act that aims to prohibit US federal government bodies from sourcing equipment and services from Chinese pharma companies.
U.S. lawmakers plan to make it more difficult for pharmaceutical companies to do business with some Chinese biotech companies because of growing national security concerns.
“With the likely shift in manufacturing from China to India, the contract manufacturing segment will double in the next three years whereas the contract research segment is set to triple over the same time,” said head of a pharma industry association.
GettyImages
Experts said that the introduction of Act by the US will further accelerate the growth of CDMOs (contract development and manufacturing organisations) and CROs (contract research organisations) in India. For instance, as per Mordor Intelligence, the contract manufacturing segment is estimated at $22.51 billion in 2024, and is expected to reach $44.63 billion by 2029, growing at a CAGR of 14.67%. Similarly, the CRO segment in India has been growing at a CAGR (compounded annual growth rate) of 10.75% and will reach $2.5 billion by 2030, as per the department of pharmaceuticals.
What is the Biosecure Act?
The Biosecure Act is the latest of the United States' initiatives aimed at hindering collaboration between companies operating in the country and states considered "foreign adversary forces", in particular China, Russia, Iran and North Korea. The concerns of US politicians behind this bill are two: the potential access to US health data and intellectual property by the Chinese government, and the growing dependence on Chinese companies for the supply of medicines. The risk, they argue, is that China will exploit its position to influence the market – a possibility that would leave US patients vulnerable to foreign government decisions.
Lawmakers also say it is necessary for the United States to remain a leader in biotechnology despite growing competition from Beijing.
The bill, if approved, would prevent the federal government from signing contracts with "biotechnology companies of interest." Not only that: the ban would also be extended to those companies (both in the United States and abroad) that have contracts with the government or receive federal funds. This includes, for example, agreements with Medicare, the federal health insurance for those over 65 or with a disability, which in total covers around 66 million people.
The proposal must be approved by both houses of Congress before becoming law, and November's presidential election could derail it. However, given the bipartisan support, several experts and US experts believe that an agreement will be found by the end of the year.
コメント