Why China CMO industries show limited threat to Indian $1.3bn market!

Emerging global hubs not immediate threat to Indian CMOs, says RNCOS

By Gareth Macdonald, 25-May-2011  The financial flexibility and quality standards of Indian CMOs should be enough to stave off competition from newer global contract manufacturing hubs, according to market research company RNCOS. The comments follow the Norida, India-based market research group's publication of a report forecasting that the country's $1.3bn (€918m) pharmaceutical contract manufacturing sector will grow at a CAGR of 45 per cent through to 2013. RNCOS spokesperson Isha Soneja told Outsourcing-pharma.com that: "Other emerging manufacturing hubs do not pose any immediate severe threat." "The primary supportive reason constitutes the investment power held by Indian contract manufacturing companies, which is much higher and flexible, making them capable for undertaking orders of any scale. "Indian companies constitute a better control over intellectual property theft and counterfeiting compared to companies in other countries. Besides, Indian companies ensure greater attention towards quality assurance and compliance to GMP practices, and have a proven track record." Soneja also predicted that larger players with GMP and FDA-certified manufacturing capabilties, such as Piramal, Dishman, Dr. Reddy's, Jubilant and Wockhardt, will maintain their dominance of the market. "These companies are taking the requisite efforts towards every aspect of contract manufacturing, which includes infrastructure expansion, quality testing, collaborative efforts.