- What are the macroeconomic trends you see in CRO pharma today?
In the near future, we expect the CRO market, especially in Asia, to show robust growth due to the following factors: First, discovery outsourcing has become a “go-to” strategy in recent years. The pandemic, where a number of customer sites have been shut down for an extended period, has only reinforced this trend. Every business, whether it’s a large pharma or a young biotech, all has outsourcing as a key part of their core growth plan. Second, significant capital continues to flow into the life sciences industry, with 2020 attracting more than $ 23 billion in venture capital investments. These new businesses all need CRO services. Finally, while there are a few CROs in Europe, the main outsourcing hubs still reside in the East, mainly in India and China, and CROs in these two geographic areas can therefore expect to be the main beneficiaries of capital trends.
What are the opportunities for India in outsourced discovery, development and manufacturing services?
Discovery: We expect India in particular to get a higher share of the growth from Discovery Outsourcing. Over the past decade, China has emerged as the prime location for outsourcing discoveries due to larger capital investments, better infrastructure, and the government requirement that customers must be in China to sell in. China. India is now tied with China on key infrastructure, has a better position in terms of costs and now benefits from the risk diversification strategy implemented by a number of our clients, as they now wish to have a significant footprint in India, alongside China. .
- The pandemic and some of the recent trade wars with the United States and China have been the main drivers of these diversification plans. Development and Manufacturing: The pandemic has resulted in the migration of some clinical and commercial API supplies to the West . Nonetheless, the West simply does not have the capacity to manufacture all the stages of API. We therefore expect that a number of raw materials, intermediaries, advanced intermediaries and regulated raw materials will be supplied from the East even as the final stages are carried out in the West. Net-net, we expect India to grow and benefit from the expected growth in API and pharmaceutical manufacturing needs.
- Your future plans for Aragen?
Aragen is a global leader and “partner of choice” in small molecule discovery, and a fast growing brand in the development and manufacture of small molecules. In large molecules, we are known for the development of cell lines, where we work and succeed in expressing some of the more difficult proteins. As we look to the future, we are investing and strengthening our discovery footprint in Hyderabad and Bangalore, as our clients’ discovery needs are increasing rapidly. In the area of development and manufacturing, we have recently invested heavily in expansions and now have the ability to meet the immediate future needs of our customers. In organic products, we are moving downstream and investing in a manufacturing facility in the United States to provide a single, seamless solution for our customers who want to develop and manufacture in one shop.