Navigating key news stories in pharma

India’s pharmaceutical industry has long been synonymous with cost-effective pharmaceutical manufacturing - particularly when it comes to generic drugs. In recent years, India has been making a significant shift from low-cost generic drug production into CDMO services.

The global biologics market is expected to reach USD 720 bn by 2030 - fueled by the increasing demand for biologics, biosimilars, and advanced therapies - and is undoubtedly an area of keen interest for CDMOs specializing in biologics.

The CDMO industry saw significant growth in 2024, as biotech and pharmaceutical companies continued the trend toward outsourcing R&D activities. This surge was evident in the global CDMO market value, which ended the year with a valuation of USD 185 billion.

Pharmaceutical industry deals have hit a decade-low in 2024, with only 558 deals totalling USD 67.2 bn by late November - the lowest since 2016. The largest biotech purchase of 2024, Vertex's USD 4.9 bn acquisition of Alpine Immune Sciences, is dwarfed by Pfizer's USD 43 bn Seagen takeover in 2023.

The decline in major acquisitions can be attributed to several factors: pharma companies digesting previous large deals, high valuations of listed biotech's deterring potential buyers, a focus on smaller, "bolt-on" deals under USD 5 bn, and antitrust concerns and political uncertainty in an election year.