In a significant industry shift, pharmaceutical companies are actively exploring alternatives to Chinese contractors for drug production, driven by concerns over geopolitical tensions and supply chain vulnerabilities. According to a Reuters report,&nbsp;industry executives and experts reveal a growing trend favouring Indian manufacturers over their Chinese counterparts.

China has been the preferred destination for pharmaceutical research and manufacturing services for nearly two decades, thanks to cost-effectiveness and rapid production capabilities offered by contract drugmakers. This relationship endured challenges from the U.S-China trade war and disruptions caused by the COVID-19 pandemic.

Changing dynamics: Seeking to 'de-risk' supply chains

Rising tensions with China have prompted Western governments to advise companies to 'de-risk' their supply chains. As a result, some biotech firms are now considering manufacturers in India to produce active pharmaceutical ingredients (API) for clinical trials and other outsourced work.

Tommy Erdei, Global Co-head of Healthcare Investment Banking at Jefferies, told Reuters, "Today, you're probably not sending an RFP to a Chinese company. It's like, I don't want to know. It doesn't matter if they can do it for cheaper, I'm not going to start putting my product into China."&nbsp;

Biotech companies turn to India: A growing trend

Dr. Ashish Nimgaonkar, the founder of Glyscend Therapeutics, told Reuters that factors over the past several years have made China a less attractive option. When issuing Requests for Proposal (RFP) for medicines in later development stages, Indian contract development and manufacturing organizations (CDMOs) are now preferred over Chinese ones.

Four of India's largest CDMOs—Syngene, Aragen Life Sciences, Piramal Pharma Solutions, and Sai Life Sciences—report increased interest and requests from Western pharma companies, including major multinationals.

While the full benefit for Indian manufacturers won't be immediate, there is a notable surge in interest. India aims to strengthen its position in the pharma services sector, boosting sales and enhancing the reputation of its $42 billion pharmaceutical industry. Despite concerns over oversight, Indian CDMOs are actively working to match Western and Chinese standards in quality.

Regulatory scrutiny and growth projections

The U.S. Food and Drug Administration (FDA) warned about an eye drop made in India in February. However, Indian CDMOs stress routine inspections by the FDA. Mordor Intelligence estimates India's CDMO industry revenue to be $15.6 billion in 2023, with a projected annual growth rate of over 11% for the next five years.

Some clients request 'backward integration to India' where even basic raw materials are sourced from India instead of China. Piramal Pharma Solutions has received such requests, indicating a broader shift in the supply chain.

Sai Life Sciences reports almost doubling its manufacturing capacity since 2019 and is set to add another 25% in the next year to meet growing demand. The industry shift is particularly evident in drug discovery work for conventional pharmaceuticals.

Bottomline

The pharmaceutical industry's move to diversify its manufacturing sources marks a pivotal moment, with Indian manufacturers poised to significantly reshape global supply chains. As tensions persist and the industry navigates geopolitical uncertainties, the landscape of pharmaceutical manufacturing is undergoing a transformative shift.

In a significant industry shift, pharmaceutical companies are actively exploring alternatives to Chinese contractors for drug production, driven by concerns over geopolitical tensions and supply chain vulnerabilities.

In a significant industry shift, pharmaceutical companies are actively exploring alternatives to Chinese contractors for drug production, driven by concerns over geopolitical tensions and supply chain vulnerabilities. According to a Reuters report, industry executives and experts reveal a growing trend favouring Indian manufacturers over their Chinese counterparts. China has been the preferred destination for pharmaceutical research and manufacturing services for nearly two decades, thanks to cost-effectiveness and rapid production capabilities offered by contract drugmakers. This relationship endured challenges from the U.S-China trade war and disruptions caused by the COVID-19 pandemic. Changing dynamics: Seeking to 'de-risk' supply chains Rising tensions with China have prompted Western governments to advise companies to 'de-risk' their supply chains. As a result, some biotech firms are now considering manufacturers in India to produce active pharmaceutical ingredients (API) for clinical trials and other outsourced work. Tommy Erdei, Global Co-head of Healthcare Investment Banking at Jefferies, told Reuters, "Today, you're probably not sending an RFP to a Chinese company. It's like, I don't want to know. It doesn't matter if they can do it for cheaper, I'm not going to start putting my product into China." Biotech companies turn to India: A growing trend Dr. Ashish Nimgaonkar, the founder of Glyscend Therapeutics, told Reuters that factors over the past several years have made China a less attractive option. When issuing Requests for Proposal (RFP) for medicines in later development stages, Indian contract development and manufacturing organizations (CDMOs) are now preferred over Chinese ones. Four of India's largest CDMOs—Syngene, Aragen Life Sciences, Piramal Pharma Solutions, and Sai Life Sciences—report increased interest and requests from Western pharma companies, including major multinationals. While the full benefit for Indian manufacturers won't be immediate, there is a notable surge in interest. India aims to strengthen its position in the pharma services sector, boosting sales and enhancing the reputation of its $42 billion pharmaceutical industry. Despite concerns over oversight, Indian CDMOs are actively working to match Western and Chinese standards in quality. Regulatory scrutiny and growth projections The U.S. Food and Drug Administration (FDA) warned about an eye drop made in India in February. However, Indian CDMOs stress routine inspections by the FDA. Mordor Intelligence estimates India's CDMO industry revenue to be $15.6 billion in 2023, with a projected annual growth rate of over 11% for the next five years. Some clients request 'backward integration to India' where even basic raw materials are sourced from India instead of China. Piramal Pharma Solutions has received such requests, indicating a broader shift in the supply chain. Sai Life Sciences reports almost doubling its manufacturing capacity since 2019 and is set to add another 25% in the next year to meet growing demand. The industry shift is particularly evident in drug discovery work for conventional pharmaceuticals. Bottomline The pharmaceutical industry's move to diversify its manufacturing sources marks a pivotal moment, with Indian manufacturers poised to significantly reshape global supply chains. As tensions persist and the industry navigates geopolitical uncertainties, the landscape of pharmaceutical manufacturing is undergoing a transformative shift.

Indian pharma manufacturers gain momentum as alternatives to Chinese partners

The drug regulator in the south Indian state of Tamil Nadu has junked media reports which claimed&nbsp;that a Chennai-based pharmaceutical company's eyedrops caused eye infections and blindness in the US.&nbsp;

Speaking to Indian news outlet NDTV, the director of the Tamil Nadu Drugs Control, PV Vijayalakshmi, said that no contamination was found in samples from unopened eyedrops manufactured at the Chennai plant.

"Samples from several batches, including the one under question, were analysed. We found no contamination. The raw materials too were found as per standards," the drug regulator's director was quoted as saying.

The remarks came after the top US medical body, Centers for Disease Control and Prevention (CDC), expressed alarm over the spread of a drug-resistant superbug linked to eyedrops and an eye ointment made by the Indian pharmaceutical company,&nbsp;Global Pharma Healthcare.

Experts have said that the strain, which was recently detected in the United States, cannot be treated with existing antibiotics, reported New York Times newspaper.

In recent months, eight cases of blindness and dozens of infections have been traced to EzriCare Artificial Tears, made by Chennai-based Global Pharma Healthcare, the NYT reported on Monday.

The Food and Drug Administration (FDA), which regulates over-the-counter medicines in the US, and the CDC have issued advisories against the use of EzriCare Artificial Tears, warning that they may be linked to an outbreak of ‘Pseudomonas aeruginosa.’

Pseudomonas bacteria causes infections in the blood, lungs or other parts of the body after surgery.

The FDA stopped imports of the product after the Indian pharma company in February recalled the potentially dangerous eyedrops from the US market.

According to medical experts, the bacteria linked to drug-resistant Pseudomonas aeruginosa is already a top concern for healthcare providers, as it affects those with compromised immune systems, nursing home residents and patients with invasive medical devices like catheters and breathing tubes.

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An infectious disease specialist at the University of North Carolina School of Medicine, Dr David van Duin, told NYT that it is difficult to neutralise the drug-resistant bacteria from health care facilities, where it clings tenaciously to sink drains, water faucets and other moist environments, and from patients who develop bloodstream infections.

A possible outbreak due to the eyedrops have been largely contained. Moreover, the CDC has been asking doctors to work with public health labs to determine the genetic fingerprint of hard-to-treat Pseudomonas infections in the eye and throughout the body.

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Additionally, the FDA has ordered to recall Delsam Pharma’s Artificial Eye ointment, which was made in the same factory as the eyedrops, because of possible contamination.

The health agency has blocked Global Pharma’s imports, saying that the company provided “an inadequate response to a records request” and violated manufacturing rules.

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After facing criticism over lapses, the FDA conducted an unannounced inspection at the India plant between February 20 and March 2. It found “a litany of problems with the plant’s sterility practices", the NYT report states citing an inspection report published by STAT news.

Moreover, the Indian government also conducted raids at the units Global Pharma Healthcare on February 3.

In a statement, the company said that it was recalling all its products due to possible contamination.

This is the second time an Indian pharma has come under the spotlight over its “substandard"&nbsp;products. Recently, a firm from Uttar Pradesh landed under scrutiny after dozens of deaths were reported among children in Gambia and Uzbekistan last year after consuming cough syrups.

(With inputs from agencies)

WATCH WION LIVE HERE

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The drug regulator in the south Indian state of Tamil Nadu has junked media reports which claimed that a Chennai-based pharmaceutical company's eyedrops caused eye infections and blindness in the US.

The drug regulator in the south Indian state of Tamil Nadu has junked media reports which claimed that a Chennai-based pharmaceutical company's eyedrops caused eye infections and blindness in the US. Speaking to Indian news outlet NDTV, the director of the Tamil Nadu Drugs Control, PV Vijayalakshmi, said that no contamination was found in samples from unopened eyedrops manufactured at the Chennai plant. "Samples from several batches, including the one under question, were analysed. We found no contamination. The raw materials too were found as per standards," the drug regulator's director was quoted as saying. The remarks came after the top US medical body, Centers for Disease Control and Prevention (CDC), expressed alarm over the spread of a drug-resistant superbug linked to eyedrops and an eye ointment made by the Indian pharmaceutical company, Global Pharma Healthcare. Experts have said that the strain, which was recently detected in the United States, cannot be treated with existing antibiotics, reported New York Times newspaper. In recent months, eight cases of blindness and dozens of infections have been traced to EzriCare Artificial Tears, made by Chennai-based Global Pharma Healthcare, the NYT reported on Monday. The Food and Drug Administration (FDA), which regulates over-the-counter medicines in the US, and the CDC have issued advisories against the use of EzriCare Artificial Tears, warning that they may be linked to an outbreak of ‘Pseudomonas aeruginosa.’ Pseudomonas bacteria causes infections in the blood, lungs or other parts of the body after surgery. The FDA stopped imports of the product after the Indian pharma company in February recalled the potentially dangerous eyedrops from the US market. According to medical experts, the bacteria linked to drug-resistant Pseudomonas aeruginosa is already a top concern for healthcare providers, as it affects those with compromised immune systems, nursing home residents and patients with invasive medical devices like catheters and breathing tubes. Marburg virus: US health body warns travellers to observe symptoms for 21 days An infectious disease specialist at the University of North Carolina School of Medicine, Dr David van Duin, told NYT that it is difficult to neutralise the drug-resistant bacteria from health care facilities, where it clings tenaciously to sink drains, water faucets and other moist environments, and from patients who develop bloodstream infections. A possible outbreak due to the eyedrops have been largely contained. Moreover, the CDC has been asking doctors to work with public health labs to determine the genetic fingerprint of hard-to-treat Pseudomonas infections in the eye and throughout the body. Also read | Who is Christina Koch? NASA astronaut set for womankind's giant leap Additionally, the FDA has ordered to recall Delsam Pharma’s Artificial Eye ointment, which was made in the same factory as the eyedrops, because of possible contamination. The health agency has blocked Global Pharma’s imports, saying that the company provided “an inadequate response to a records request” and violated manufacturing rules. Also read | Evan Gershkovich, US journalist arrested by Russia appeals against detention After facing criticism over lapses, the FDA conducted an unannounced inspection at the India plant between February 20 and March 2. It found “a litany of problems with the plant’s sterility practices", the NYT report states citing an inspection report published by STAT news. Moreover, the Indian government also conducted raids at the units Global Pharma Healthcare on February 3. In a statement, the company said that it was recalling all its products due to possible contamination. This is the second time an Indian pharma has come under the spotlight over its “substandard" products. Recently, a firm from Uttar Pradesh landed under scrutiny after dozens of deaths were reported among children in Gambia and Uzbekistan last year after consuming cough syrups. (With inputs from agencies) WATCH WION LIVE HERE

Tamil Nadu drug regulator says 'no contamination found' in Indian eyedrops after US raises alarm

Domestic pharma companies have the potential to grow their revenue from the US by almost five times at around USD 30 billion from USD 6.5 billion in 2018 if they properly tap just 10 of the widely consumed drugs in the world’s largest drug market, according to an analysis by the World Trade Centre.&nbsp;

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Despite being the largest export market for domestic pharma makers, they served only a miniscule 5.6 per cent or USD 6.5 billion of the over USD 116 billion American pharma imports of in 2018, show the WTC data.

Despite having good demand from across the markets, primarily due to lower prices and easy availability, India controls only 2.4 per cent of global pharma exports. With robust manufacturing capabilities, domestic pharma companies have the potential to enhance their exports to the US by almost five times to USD 29.6 billion, says the WTC in a note quoting data from the UN’s International Trade Commission.

The WTC has identified 10 products that constitute about 25 per cent of American pharma imports in 2018 at USD 29.6 billion which constitute about 17 per cent of US imports from India. These ten products include single vitamins, medicaments affecting central nervous system, cough &amp; cold preparations, dermatological agents &amp; local anesthetics, chemical contraceptives, sterile surgical catgut, antineoplastic &amp; immunosupressive medicaments, and structural analogues among others.

These 10 products constitute around 25 per cent of American drug imports and but the share of Indian companies in 2018 was only worth USD 1 billion. Domestic pharma companies shipped products worth USD 6.53 billion in 2018 to the US, which was only 5.61 per cent of total American imports worth USD 116.35 billion, showed WTC data.

Domestic pharma companies have the potential to grow their revenue from the US by almost five times at around USD 30 billion from USD 6.5 billion in 2018 if they properly tap just 10 of the widely consumed drugs in the world’s largest drug market, according to an analysis by the World Trade Centre.

Domestic pharma companies have the potential to grow their revenue from the US by almost five times at around USD 30 billion from USD 6.5 billion in 2018 if they properly tap just 10 of the widely consumed drugs in the world’s largest drug market, according to an analysis by the World Trade Centre. Also read: As trade war with US heats up, China cuts duties on Indian medicines Despite being the largest export market for domestic pharma makers, they served only a miniscule 5.6 per cent or USD 6.5 billion of the over USD 116 billion American pharma imports of in 2018, show the WTC data. Despite having good demand from across the markets, primarily due to lower prices and easy availability, India controls only 2.4 per cent of global pharma exports. With robust manufacturing capabilities, domestic pharma companies have the potential to enhance their exports to the US by almost five times to USD 29.6 billion, says the WTC in a note quoting data from the UN’s International Trade Commission. The WTC has identified 10 products that constitute about 25 per cent of American pharma imports in 2018 at USD 29.6 billion which constitute about 17 per cent of US imports from India. These ten products include single vitamins, medicaments affecting central nervous system, cough & cold preparations, dermatological agents & local anesthetics, chemical contraceptives, sterile surgical catgut, antineoplastic & immunosupressive medicaments, and structural analogues among others. These 10 products constitute around 25 per cent of American drug imports and but the share of Indian companies in 2018 was only worth USD 1 billion. Domestic pharma companies shipped products worth USD 6.53 billion in 2018 to the US, which was only 5.61 per cent of total American imports worth USD 116.35 billion, showed WTC data.

US offers $30 billion more market to Indian pharma companies