New Delhi [India], March 10 (ANI): Indian pharma companies like CDMOs (Contract Development and Manufacturing Organizations) will not see major disruptions from the proposed US tariffs of 10-25 per cent, according to a report by B&K Securities.
The report highlighted that Indian pharma services companies will continue to benefit from favourable global factors despite concerns over new trade restrictions.
It said “The companies see only marginal impact and no major disruption to US business from the planned US tariffs (10-25 per cent)”.
The US remains a key market for Indian CDMO players, with exports worth approximately USD 9-10 billion annually. While the tariff proposal has raised concerns, Indian firms expect only a marginal impact on their business.
The report stated that India continues to play a crucial role in the US generic drug supply chain, providing Key Starting Materials (KSMs), Active Pharmaceutical Ingredients (APIs), and finished formulations. Indian companies supply nearly 40-45 per cent of the total generic drug volume in the US market.
It said “Export formulation players can majorly pass on any price impact from US tariffs to end customers. India caters to nearly approx. 40-45 per cent of the generic drug volumes in the US”.
Formulation exporters will be able to pass on any cost increases by tariffs to end customers, minimizing financial pressure on Indian manufacturers.
The report adds that global pharmaceutical companies are increasingly outsourcing production to Indian CDMOs due to the China+1 diversification strategy.
Additionally, a favourable USD/INR exchange rate and a rise in requests for quotations (RFQs) are boosting growth opportunities.
It also mentioned that the Indian CDMO companies are actively investing in expanding their capabilities and capacity. This includes advancements in complex chemistry, new technologies, and specialized fields like Antibody-Drug Conjugates (ADCs), peptides (including GLP-1), Cell and Gene Therapy (CGT), CAR-T, and Biotech.
With the global CDMO market valued at around USD 180 billion, Indian players are well-positioned to capitalize on emerging opportunities.
Their ongoing investments in research, technology, and production capacity will likely strengthen India’s role in the global pharmaceutical industry despite trade policy uncertainties. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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