Pharma Industrial India Magazine - May-June 2024

Comprehensive Overview of Contract Research and Manufacturing Services (CRAMS) in India India’s journey in the Contract Research and Manufacturing Services (CRAMS) industry began in the early 1980s, drawing multinational pharmaceutical companies seeking cost-effec- tive research and manufacturing solutions. Over the years, In- dia has become a leading destination for outsourced pharma- ceutical services, providing a wide range of capabilities across the drug development and manufacturing value chain. This sector has seen steady growth due to increasing demand for outsourcing services from global pharmaceutical companies, growing investments in R&D, and a shift towards specialized services. Key Advantages of India’s CRAMS Industry Skilled Scientific Talent India boasts a large pool of skilled scientific professionals. The availability of highly trained scientific and technical profession - als is a significant advantage, allowing India to offer compre - hensive research and development services across the phar- maceutical value chain. Robust Regulatory Framework The country has a strong regulatory framework ensuring qual- ity and compliance. The Central Drugs Standard Control Or- ganization (CDSCO) and other regulatory bodies such as the Department of Biotechnology (DBT), Indian Council of Medical Research (ICMR), and the Ministry of Health and Family Wel- fare play pivotal roles in overseeing and ensuring the adher- ence to stringent regulations, thereby enhancing the credibility of Indian CRAMS players on a global scale. Cost Competitiveness India offers cost-effective solutions compared to other markets. Manufacturing labor costs in India are significantly lower than in other regions, with costs in 2022 being 35% of those in Chi- na. This cost advantage attracts multinational companies to outsource their manufacturing and research activities to India. Favorable Business Environment A supportive business environment fosters growth. India’s pol- icies, such as the Production Linked Incentive (PLI) schemes and the Promote Research in Pharma (PRIP) scheme, encour- age investment in innovative research and development, there- by supporting the growth of the CRAMS sector. Trends and Opportunities Market Overview The CRAMS market in India is valued at approximately USD 21 billion in 2023, making up about 20% of the overall APAC mar- ket. The market is expected to grow at a CAGR of around 10% from 2023 to 2028, driven by the rising demand for generics, increasing healthcare awareness, and a large base of patients with acute and chronic diseases. Market Segmentation The Indian CRAMS market comprises two major segments: Contract Research Organizations (CRO) and Contract Devel- opment and Manufacturing Organizations (CDMO). Approxi- mately 75% of the CDMO market belongs to contract manufac- turing services, with the remaining 25% dedicated to research and development services. Key Services • Contract Research Organization (CRO): Provides support in the form of research services, including drug discovery, pre-clinical trials, specimen development, and clinical trials. • Contract Development and Manufacturing Organizations (CDMO): Offers services such as drug development, manu- facturing, packaging, analytical and quality control services, commercial production, and supply chain services. Growth Drivers 1. Rising Demand for Generics: Increasing awareness and Sanjay Sachdeva Director, Healthcare and Lifesciences Praneet Singhal Director, Financial Investors and 1Alpha 1Lattice ANRETWICSLE PHARMA INDUSTRIALINDIA · MAY-JUN 24 26