Indian companies in the contract research and manufacturing services (CRAMS) domain appear to be doing well as is reflected in the stock market performance of these companies.
The list includes Divi’s Laboratories, Dishman Pharmaceuticals & Chemicals, Nicholas Piramal, Shasun Chemicals & Drugs, and Jubilant Organosys
This report in today’s Economic Times highlights that CRAMS companies’ shares have risen by 19% in the last three months as against a 4% increase in shares of generic pharmaceutical companies.
According to Frost & Sullivan, the contract services market revenues for 2006 were an estimated $895m or about one-sixth of the Indian domestic industry with an annual growth of 43%. The market is still in its growth stage and is expected to grow at around 34% between 2007 and 2013. Contract manufacturing accounts for 70% of this market, while clinical research and contract research account for respectively 16% and 13%.
A financial analyst estimates that India now accounts for 3% of the global CRAMS market which will touch 10% in the next 10 years. Indian generic pharmaceutical companies are reeling under price pressure but the outsourcing sector is still going strong.