Jefferies emphasizes the potential for Indian CDMOs in small molecules and niche areas like peptides, even as the Bio Secure Act faces uncertainty under the new U.S. administration. Indian players like Cipla and Sun Pharma stand to benefit from their capabilities in the U.S. and other geographies.
The firm notes that having facilities in the West is critical for securing client relationships. However, complexities in biologics manufacturing remain a challenge for Indian firms compared to global competitors like China’s Wuxi, which has retained a strong customer base. Jefferies expects Indian CDMOs to navigate these challenges with innovation and strategic investments.
