Labiotech.eu’s Post

Wuxi's exit from the US CDMO space will leave a gap. Currently, Indian CDMOs look like the most likely candidates to fill it. A key feature of Indian CDMOs' strategy has been to remain independent from Chinese suppliers, mitigating the risk of disruption. As other CDMOs scramble to find new suppliers, India will emerge as a key replacement for companies like Wuxi. However, there will still be opportunities for European organisations if they act fast. Bolstering our self-reliance will put us in a strong position to compete for entry into the US industry. #BiosecureAct #Biotech #CDMOs #Biopharma

Interesting article on the impact of US BioSecure Act on American Pharma giants with Chinese players (likes of Wuxi Biologics) in interest of national security by L.E.K. Consulting released recently https://lnkd.in/gNuX4AGp I try to decipher how would this impact India's Pharma industry ? 💊 Indian CDMO players currently are at 2.7% and 1.6% market share in global CDMO and CRO market respectively compared to 8 and 16% for China respectively. For Indian players this is projected to go up to 3% and 2.3% as per FY28. Indian players exhibit healthy EBITDA margins of 25-30% higher than 10-15% of European players due to strong pipeline of R&D talent and low cost manufacturing. As the world tries to decouple from Chinese CDMO/CRO players this opens up an opportunity for Indian CDMO/CRO players in light of China+1 opportunity. 💡 🏥 However there is still a challenge as >50% of Key Starting Materials and intermediaries for Indian API players still comes from China. Case in Point- AUROBINDO PHARMA LTD Pharma the biggest generic supplier (by volume) to US has 55% of its raw materials for APIs coming from China. The economies of scale are not favourable yet so this will be of huge interest for Indian pharma industry going forward since PLI scheme for chemicals in India is still at an early stage 💡💹 💸 PE investments however can play an important role here to accelerate market consolidation to reach those economies of scale viable for local manufacturing of raw materials for API. Deals such as Matrix Pharma's acquisition of Viatris to consolidate capacity and modalities (ART) or Advent International led merger of Suven Pharmaceuticals and Cohance Lifesciences (100% owned at deal stage) to create India's largest integrated CDMO giving some tough competition to leaders such as Syngene International Limited and Aragen Life Sciences are surely positive steps in that direction. 🥇 🚀 Another positive story coming out is India's AUROBINDO PHARMA LTD and Mumbai based Kinvan pharma to manufacture raw materials for Penicillin-G under PLI scheme and release first batches from this year since Chinese cheap APIs flooded the market and forced Torrent to stop manufacturing decades back. This trend is going to continue going forward as Lupin also recently announced to enter CDMO space. https://lnkd.in/gbKdNTtd This is an interesting space to watch out as many foreign PE players are rushing in to invest in India's CDMO/CRO space with already $11 billion over the last 2 years and median EV/EBITDA of ~20 over the last 5 years . The key question is how to couple this with the vision of Atmanirbhar Bharat and scale quickly and efficiently for benefit of India and the world https://lnkd.in/gNuX4AGp

I'm not against the US government deciding to move away from WuXi, especially if they are stealing biotech secrets. But any shift in production and supply chains will have to be done carefully, since it would be impossible to immediately shift away all production. The US government must also be willing to invest in the production infrastructure in the US. And, of course, drug prices will inevitably rise if the costs of research and production increase... https://lnkd.in/eJGpQcr9

𝐂𝐨𝐮𝐥𝐝 𝐈𝐧𝐝𝐢𝐚 𝐛𝐞 𝐚 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐫𝐞𝐩𝐥𝐚𝐜𝐞𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐂𝐃𝐌𝐎𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 ❓ ✔ Indian CDMOs are gaining a significant foothold in the global biopharmaceutical manufacturing market, attributed to their cost-effective production capabilities and high-quality standards. ✔ India’s competitive edge lies in its skilled workforce, robust regulatory framework, and advanced infrastructure, which enable efficient and compliant manufacturing processes. ✔ Indian CDMOs are increasingly adopting stringent biosecurity measures and quality assurance practices, aligning with global standards to meet the rising demands for safe and secure manufacturing. ✔ There is a surge in investments and technological advancements within Indian CDMOs, driving innovation in biomanufacturing and positioning India as a key player in the industry. ✔ Indian CDMOs are embracing sustainability initiatives, focusing on eco-friendly practices to minimize environmental impact and promote long-term industry growth. 🔗 𝐑𝐞𝐚𝐝 𝐦𝐨𝐫𝐞 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞𝐬𝐞 𝐭𝐫𝐞𝐧𝐝𝐬 𝐚𝐧𝐝 𝐭𝐡𝐞𝐢𝐫 𝐢𝐦𝐩𝐚𝐜𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐂𝐃𝐌𝐎 𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐡𝐞𝐫𝐞: https://lnkd.in/eA98NtqS

𝙷̲𝚊̲𝚛̲𝚗̲𝚎̲𝚜̲𝚜̲𝚒̲𝚗̲𝚐̲ ̲𝙾̲𝚙̲𝚙̲𝚘̲𝚛̲𝚝̲𝚞̲𝚗̲𝚒̲𝚝̲𝚒̲𝚎̲𝚜̲:̲ ̲𝚃̲𝚑̲𝚎̲ ̲𝚄̲𝚂̲ ̲𝙱̲𝚒̲𝚘̲𝚜̲𝚎̲𝚌̲𝚞̲𝚛̲𝚎̲ ̲𝙰̲𝚌̲𝚝̲ ̲𝚊̲𝚗̲𝚍̲ ̲𝙸̲𝚝̲𝚜̲ ̲𝙸̲𝚖̲𝚙̲𝚊̲𝚌̲𝚝̲ ̲𝚘̲𝚗̲ ̲𝙸̲𝚗̲𝚍̲𝚒̲𝚊̲𝚗̲ ̲𝙿̲𝚑̲𝚊̲𝚛̲𝚖̲𝚊̲ In January, the US House Select Committee introduced the Biosecure Act to limit Chinese biotechs and manufacturers' access to US funding and collaborations. This move, aimed at protecting US national security, has significant implications for the global pharma industry, especially for India. This challenge presents a golden opportunity for Indian Contract Development and Manufacturing Organizations (CDMOs). Indian CDMOs could see significant benefits as US pharma companies diversify their supply chains away from China. 𝗜𝗻𝗱𝗶𝗮𝗻 𝗖𝗗𝗠𝗢 𝗠𝗮𝗿𝗸𝗲𝘁: 𝗔 𝗚𝗿𝗼𝘄𝗶𝗻𝗴 𝗣𝗼𝘄𝗲𝗿𝗵𝗼𝘂𝘀𝗲 The Indian CDMO market, valued at approximately ₹18,800 crore in 2024, is projected to double to ₹37,200 crore by 2029, growing at a robust CAGR of 14.67%. This outpaces the global CDMO market, which is expected to grow from ₹2.03 lakh crore to ₹2.77 lakh crore in the same period, at a CAGR of 6.41% (𝘔𝘰𝘳𝘥𝘰𝘳 𝘐𝘯𝘵𝘦𝘭𝘭𝘪𝘨𝘦𝘯𝘤𝘦). Government incentives like the production-linked incentive (PLI) scheme further bolster India’s competitive edge. Over the next 12-18 months, Indian CDMOs are poised to receive increased orders from US firms, presenting a viable and cost-effective alternative to Chinese manufacturers. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗦𝗵𝗶𝗳𝘁𝘀 𝗮𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 India Ratings and Research (Ind-Ra) projects a surge in orders for Indian CDMOs and CROs from US pharmaceutical firms. This shift, coupled with improved capacity utilization and operating leverage, is set to enhance margins and cash flows for Indian companies. More than 60% of listed pharmaceutical firms have reported increased business enquiries, with 33% expecting significant business growth due to the Biosecure Act. 🔹 As the global pharma landscape evolves, Indian CDMOs stand at the cusp of unprecedented growth. The Biosecure Act, while a protective measure for the US, unlocks vast potential for India’s pharmaceutical industry. It's a testament to the resilience and strategic acumen of Indian pharma, ready to meet global demands and drive innovation. #Pharma #BiosecureAct #CDMO #IndiaPharma #GlobalPharma #Manufacturing #Healthcare

The BIOSECURE Act is a game-changer for the US biopharma industry, impacting over 120 drugs in development, many partnered with Chinese companies. The bill mentions major Chinese companies WuXi AppTec, BGI, MGI, and Complete Genomics along with their subsidiaries, parents, affiliates, and successors, citing them as risk to US national security. In addition, the bill aims to prevent US biopharmaceutical companies that collaborate with these Chinese companies “of concern” from accessing US federal funding mechanisms such as the contracts, loans, and grants. In May 2024, US lawmakers revised the BIOSECURE Act, setting a deadline of January 1, 2032 for US biopharmaceutical companies to end their contracts with the Chinese companies. This creates a HUGE opportunity for strategy consulting firms! Here's why: Biopharma scramble for new partners: US companies need alternative CDMOs before the 2032 deadline. ⏳ Shifting landscape: Indian CDMOs are well-positioned, but domestic options might also rise. In particular, CDMOs such as Cipla, Syngene, and Aurobindo may be well-positioned for increased growth due to their cost-effectiveness and highly skilled workforce. Strategic guidance in demand: Biopharma companies need expert help navigating this complex situation. #LifeSciences #BIOSECUREAct #CDMO #StrategyConsulting #GlobalData Figure below is the total number of active innovator drugs by highest development stage involved in CSAs or strategic alliances between US-based companies and Chinese companies covered by the BIOSECURE Act, public and private companies

As scrutiny intensifies on China-based companies like WuXi AppTec over alleged government connections, India's CDMO industry may be poised for growth. With congressional pressure mounting, global pharmaceutical companies are potentially seeking alternative outsourcing partners. India's CDMO sector, known for its cost-effectiveness and high-quality standards, could benefit from this shifting landscape. The country's robust infrastructure, skilled workforce, and favorable regulatory environment position it as an attractive option for collaborations in drug development and manufacturing. While challenges remain, the current geopolitical climate may present a unique opportunity for Indian CDMOs to showcase their capabilities and establish new international partnerships. This shift could ultimately bolster India's role in the global pharmaceutical supply chain. Read the full article at https://lnkd.in/eDFpzXrh

Do you know the govt. approved 746 PLI* applications Till Nov 2023 with an investment of Rs.95,000Cr & ACTUAL incentives disbursed worth of Rs.2,900Cr? 7.5% are related to Pharma Manufacturing. *PLI- Production Linked Incentive Even though this number must be >1000 still it is a long way to transitioning from a generic drug producing country to one with NEW DRUG ENTITIES DEVELOPMENT capabilities. What can be done to improve the R&D in Pharma sector to find new formulations? 1) Should the govt. do the R&D by itself like how ISRO (a govt. org) built space rocket? OR 2) Should the govt. fund startups inventing medical technologies given there is not much VC funding in this regard unlike in the US? Does there exist a SUSTAINABLE direction? Piyush Sanduja #healthcare #healthtech #india #doctors #production #pharmaceuticalmanufacturing #pharma #pli #incentives #genericdrugs #activepharmaceuticalingredients #api #researchanddevelopment #isro #isroindia #chandrayaan3 #spacetech #vcfunding #usa #makeinindia

Assessing the Chinese biotech supply chain risk: Proposed Biosecurity Act targets four Chinese biotech companies deemed to be U.S. national security concern. The proposed Biosecurity Act has been advanced to the Senate floor and specifically targets four Chinese biotech firms – WuXi AppTec, WuXi Bio, BGI Genomics, and MGI and its San Jose-Based subsidiary, Complete Genomics – from accessing U.S. funding and contracts with domestic biotech and pharma firms. It’s a balance between reduced-cost drugs and ingredients from China and protecting U.S. citizens’ genomic data. https://lnkd.in/eS2sQhQc #geopolitics #chinarisk #china #USChinarelations #pamirconsulting #chinaconsulting #chinabusiness #biotech #biosecurity #USChina

#VantageOnFirstpost Indian, Chinese Drugmakers Ready to Challenge Ozempic's Dominance | Vantage with Palki Sharma Drug makers in China are gearing up to challenge Ozempic's Dominance. Reports say, at least 15 generic versions of the weight loss drug are under development. Drug makers in India too are trying to come up with their own versions. A report in February had claimed that Indian pharma companies have begun developing their own versions. Generic versions of the drug could help in bringing the price of the jab down. But it also raises new risks. Palki Sharma tells you more. --- Indian | Chinese | Drug makers | Ozempic | Firstpost | World News | News Live | Vantage | Palki Sharma | News #indian #chinese #drugmakers #ozempic #firstpost #vantageonfirstpost #palkisharma #worldnews