India's Pharmaceutical Industry Gains Global Ground Amid US-China Tensions
Indian pharmaceutical firms are making strategic international acquisitions and investing in advanced drug development, capitalizing on the global push for nearshoring and diversification away from China.
IndiaPharmaceuticalsNearshoringChinaBiologicsReal EstateMay 26, 2025
Indian CDMOs, once known primarily for cost-effective manufacturing, are now stepping into sophisticated domains. Suven Pharmaceuticals acquired NJ Bio Inc. in Princeton, USA, for $65 million in December, enhancing its footprint in antibody-drug conjugates—a cutting-edge cancer treatment. “Our acquisition strategy is around assets that bring in cutting-edge technology and strong scientific talent,” said Vivek Sharma, Suven’s Executive Chairman, as quoted by The Economic Times.
Syngene International, a subsidiary of Biocon, followed suit by acquiring Emergent BioSolutions’ biologics facility in Baltimore for $36.5 million. Peter Bains, Syngene’s CEO, told ET, “It gives us a strategic foothold in the US by bringing us closer to the wider customer market.”
The China+1 strategy has gained traction as global pharma companies, rattled by geopolitical risks and regulatory pressure, seek to diversify away from China. According to consultancy firm LoEstro, companies are heavily investing in regional facilities to bolster supply chain resilience. This realignment has opened significant doors for India. Sai Life Sciences, an early adopter, established R&D centres in the US and UK five years ago. “We are seeing a growing customer preference for nearshoring,” CFO Siva Chittor confirmed to ET.
A key tailwind is the US BioSecure Act, which proposes restrictions on American collaboration with Chinese drugmakers. Though currently stalled, its revival could push more business India's way. India’s edge lies in its skilled scientific talent, regulatory compliance, and a cost-effective manufacturing base. “We remain committed to expanding our capabilities and capacity,” said Akhil Ravi, CEO of Aurigene, who noted the firm’s latest biologics facility in Hyderabad’s Genome Valley.
Jubilant Ingrevia CEO Deepak Jain expressed optimism, expecting a 6–7x growth in pharmaceutical contracts over the coming years. “This is a golden opportunity for India. If not India, who else?” he remarked. Nandini Piramal, Chairperson of Piramal Pharma, underscored their readiness for the surge, citing a $90 million expansion across US facilities in Michigan and Kentucky. “We are one of the best-positioned CDMOs to benefit from pharma companies wanting to onshore manufacturing in the US,” she said.
However, industry veterans caution that India must overcome hurdles such as delayed regulatory clearances and slower project execution. “Speed and agility are key expectations from global innovators,” warned Annaswamy Vaidheesh, former MD of GSK Pharma India. “Chinese CDMOs have set high benchmarks… Indian players need to meet these expectations competitively.” Despite Indian CDMOs’ growing sophistication, Chinese players still dominate with over 80 per cent of global market share in CDMO services, thanks to their speed, scale, and cost efficiency.
Private equity is pouring into the Indian CDMO space. Over $900 million has been raised through private investments and nearly $750 million through IPOs in just 15 months, according to Grant Thornton. “This reflects the segment’s growing strategic relevance,” said Bhanu Prakash Kalmath SJ, Partner and Healthcare Industry Leader. A LinkedIn post by Syngene’s CEO Peter Bains highlighted the long-term trajectory: “India is entering a critical phase in the evolution of its CDMO industry. A CAGR of 15 per cent in 2019–24, double the global growth rate, indicates strong tailwinds.”
Meanwhile, Donald Trump’s executive order directing pharma companies to cut drug prices in 30 days, though still under negotiation, has nudged US firms to look to India for cost-efficient partnerships—boosting the subcontinent’s strategic leverage. With global sentiment shifting, India’s pharmaceutical sector is no longer playing second fiddle. Its CDMOs are integrating into the global innovation ecosystem, transforming from backend manufacturers to frontline partners in drug development. As The Better India noted in a recent industry reflection, “The Indian pharmaceutical industry is not just responding to change; it is shaping it.”
Frequently Asked Questions
What is the China+1 strategy?
The China+1 strategy refers to the global push for diversification away from China, where companies are seeking to establish additional manufacturing and supply chain facilities in other countries to reduce dependency on China and mitigate geopolitical and regulatory risks.
Why are Indian pharmaceutical firms making international acquisitions?
Indian pharmaceutical firms are making international acquisitions to capture business from Western pharma giants seeking alternatives to China and to gain a greater share of the lucrative biologics and complex therapy markets. These acquisitions also help in bringing cutting-edge technology and strong scientific talent to their operations.
What are the key advantages of the Indian CDMOs?
The key advantages of Indian CDMOs include a skilled scientific talent pool, regulatory compliance, and a cost-effective manufacturing base. These factors make India an attractive destination for global pharma companies looking to diversify their supply chains.
What are the operational challenges faced by Indian CDMOs?
Indian CDMOs face challenges such as delayed regulatory clearances and slower project execution. Speed and agility are key expectations from global innovators, and Indian players need to meet these expectations to remain competitive.
How is private equity impacting the Indian CDMO industry?
Private equity is pouring into the Indian CDMO space, with over $900 million raised through private investments and nearly $750 million through IPOs in just 15 months. This reflects the growing strategic relevance of the Indian CDMO industry and boosts investor confidence.
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