Can India Leverage US Biosecure Act to Strengthen CRDMOS?

The United States of America (USA) is set to implement an Act that will impact the global biotechnology and pharmaceutical industries, potentially opening opportunities for India to dominate the landscape – the Biosecure Act.

- Shivani Thakar

On September 9, 2024, the House of Representatives passed the BIOSECURE Act. The US BIOSECURE Act restricts US Federal agencies from contracting with or procuring services and equipment from Chinese “biotechnology companies of concern”, and will extend to companies that source or utilise equipment or services from five Chinese companies, namely WuXi Apptec, MGI, BGI, Complete Genomics, and WuXi Biologics. With China as a leading destination for the USA for outsourcing contract manufacturing and research services in the biotech and pharmaceutical sectors, this Act can affect supply chain dynamics in these sectors and countries like India are positioned to be alternative destinations for the US for Contract Development and Manufacturing Organisations (CDMO)/ Contract Research Organisations (CRO) services and capitalise on this. Let's take a look at what its implications would be on the Indian CRDMO sector.

The US Biosecure Act aims to decouple its supply chains from China, presenting a huge opportunity for India’s pharma industry.