Jefferies has shared positive insights following its recent pharma and healthcare sector tour, projecting a strong medium-term outlook for Contract Development and Manufacturing Organizations (CDMOs). The brokerage noted that generic pharmaceutical firms are adopting varied strategies to counter price erosion, and non-price metrics are increasingly prioritized in supplier selection—a shift from earlier practices.
CDMO companies conveyed optimism about their growth potential, distancing themselves from an overreliance on the China+1 strategy. Hospitals are also planning to expand into new geographies after securing a solid base in domestic markets. Jefferies highlighted Zydus, DRL, and Lupin’s focused product portfolios, while Sun Pharma stood out as the only company actively pursuing specialty strategies for the U.S. market in the near term.
The report underlines that regulatory tailwinds and robust domestic demand will drive sectoral growth. With increasing attention on biologics and specialty products, Jefferies sees long-term opportunities for Indian pharma players to strengthen their global presence.
