US Biosecure Act Passed: Major Impact on Indian CDMO Industry
US Biosecure Act Passed: A New Era for Indian Pharma
The US Biosecure Act was recently passed by the US House of Representatives, moving closer to a Senate vote. Its primary aim is to restrict US drugmakers from collaborating with five Chinese firms, emphasizing a strategic shift for the US biopharmaceutical sector.
Implications for the Indian CDMO Industry
- Indian CDMO companies are poised to benefit significantly from this legislation, attracting increased business from US pharmaceutical firms.
- Divi's Labs, Laurus Labs, Neuland Laboratories, Syngene, Suven Pharma, and Piramal Pharma are expected to see a surge in demand as drugmakers look to shift manufacturing away from China.
This bill targets the reliance on technology transfers to China and aims to enhance the competitiveness of the American market. Analysts suggest that the anticipated growth in India's CDMO market could be fueled by its faster expansion compared to the global pharmaceutical sector.
Market Trends and Growth Projections
- This growing demand is attributed to the increasing interest from biotech companies needing outsourcing partners.
- Forecasts predict the Indian CDMO market could grow from $19.63 billion in 2023 to $44.69 billion by 2029, representing nearly a 15% CAGR.
- Government incentives and rising capital investments are also expected to support this transition.
The changes heralded by the US Biosecure Act could significantly reshape the landscape for Indian pharma, presenting opportunities for robust growth in the coming years.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.