India to remain the viable strategic Pharma CMO hub

With a shift in the business model of Contrast research and manufacturing services (CRAMs) from vertical integration to global outsourcing, India has gained a significant place as a low cost contract manufacturing location. India has become of the foremost countries to capitalize on this opportunity. Low labor costs, innovative talent and expertise and lower capital and R&D costs, make India a strong prospect for carrying out outsourcing operations. India stands higher in cost efficiency as compared to other countries, with an immense scope of growth in the pharmaceutical market in the future also. Findings With the building pressures of growing demand, rising costs, increasing competition, patent expiration, etc. have lead to a paradigm shift in the business model of pharmaceutical companies from a vertically integrated model to a low cost CRAMS (Contract Research and Manufacturing Services) model. The modes of outsourcing in this model, include contract research organization (CROs), contract development and manufacturing organization (CDMO)�, and contract manufacturing organizations (CMOs). CMOs have transitioned from being a manufacturing partner to being a strategic partner to companies. The global CMO market is expected to grow at a CAGR of 12-13% across 2013 -2017.   Author: Nikita Maureen Mendonca