India is quoted as the ‘Pharmacy of the World’ due to the position it holds in manufacturing pharmaceuticals on a global level. On a similar note, the country is also gaining huge momentum in the pharmaceutical contract manufacturing segment of the industry. This is because production ensures low cost on international quality of drugs across the globe.
The new-age trends that are being matched by the contract manufacturing pharmacy can be used for solutioning current challenges as well as deriving an opportunity for growth. Such a scenario depicts pharmaceutical contract manufacturing in India might grow about 18% on the compound annual rate in manufacturing in the future.
As production of medicines and drugs have become a debatable competition worldwide, several industry regulators such as USFDA, MCCSouth Africa, MHRA-UK, TGA-Australia have been consistently ensuring strict followup on all legal & ethical norms in this area. Right from production to clinical trials, licences and on-going researches, every step-wise operation is held tight. Therefore, many multinational companies made a thoughtful decision to shift certain parts of their companies like R&D and manufacturing, to a low-cost yet profitable site, like India. This is how India became a favourable host for many such MNCs.
Why choose India?
To manufacture the base of pharmacy drugs or medicines, India is highly resourceful. The country has unmatched manpower, extensive technician knowledge-base and WHO-GMP approved production centres that drive low cost operations with high-profits. Compared to other countries that might somewhat match this criteria, pharmaceutical formulation companies in India provide around 40% cut on the operation & production of drugs and medical products. Hence, many MNCs from the developed countries outsource their production needs to India on a contract basis.
The growing demands from the MNCs have consistently broadened & unfolded various ends of the contract manufacturing sector. Areas like formulation development, clinical trials & study, basic medicine manufacturing, drug stability studies, etc. were derived. Every enhancement led to an improving gain in the contract based industry. As a result, such inspiring developments led the Japanese Pharma Companies to house their production centres in India, with full-ownership or in partnership with the Indian companies. This also impacted India’s domestic CMO market, benefitting the country’s economy.
Besides, India produces more than 40% of the price competitive generic drugs outside the US. These are basically manufactured in USFDA approved production plants in the country. Hence, several brands worldwide outsource manufacturing of generics to many of these pharma manufacturers in India.
While a few of the European manufacturing plants are growing old, India could see a growing opportunity for contract service providers. Also as the cost of manufacturing at other locations is rising, it is more likely for European countries to reset those plants in a lucrative country like India or to outsource to the country’s pharmaceutical manufacturers. With the vision to promote Indian generics in the International market, the government of the country has designed several policies moving forward.