Jefferies: India's CRDMO sector earns USD 3 billion

India's contract research, development, and manufacturing organisation (CRDMO) sector is emerging as one of the most dynamic growth stories in the global pharmaceutical landscape.

- TBG NETWORK

According to a recent Jefferies India report, the country's CRDMO, which has already reached revenues of around USD 3 billion, has grown at a compound annual growth rate (CAGR) of 14 per cent over the past five years.

The report highlights that India's CRDMO industry has caught the attention of global investors, with its market capitalization now standing at USD 40-50 billion. While the Covid-19 pandemic temporarily skewed demand, the future looks stronger. Jefferies estimates an 18 per cent CAGR for the sector between FY25 and FY30, fueled by a visible drug pipeline, Big Pharma's diversification under the "China+1" strategy, and rising opportunities in weight-loss and Type 2 diabetes drugs.