India may account for 8-10% of global work share to CDMOs by 2033: Report

India could potentially account for 8-10 per cent of work share outsourced to CDMOs globally by 2033, an outcome of a significant amount of work shifting from EU and the US to Asia, a report by McKinsey & Company has said.

The global CRDMO (Contract Research Development & Manufacturing Organisation) industry is about to witness a re-distribution of outsourcing work across several Asian countries, with India and Korea emerging as new powerhouses by 2033, the report said.

According to a McKinsey analysis, by 2033, India could potentially account for 8-10 per cent share of work outsourced to CDMOs globally.

"This growth is largely driven by the evolving geopolitical environment with most Indian CRDMOs expecting 20-40 per cent of their new business to stem from these changes," the survey stated.

As per market estimates, the global CDMO industry is estimated at $224 billion which is expected to rise to $465 billion by 2032.

McKinsey & Company Partner Anirudh Roy Popli said the biopharma industry is increasingly recognising the value Indian CDMOs bring to the table.

"With a strong focus on value and innovation, Indian CDMOs are well-positioned to play a pivotal role in shaping the future of healthcare," he added.

Eight Roads Ventures Senior Partner, Head of India & India Healthcare Investments Prem Pavoor said the living geopolitical landscape and impending legislation presents a significant opportunity for the Indian CDMO industry, one that could be truly transformative.

"We're already seeing leading Indian bio-pharmaceutical companies receive more request-for-proposals, especially from US customers. Though these customers may be adopting a wait-and- watch approach for now, it's clear that, amidst global uncertainties, they will seek to diversify their outsourcing footprint," he added.

This creates a huge opportunity for India, but also a challenge because Indian CDMOs will need to be prepared with the right infrastructure and services to meet this increased demand, Pavoor said.