Jibu Thomas

[Concall Chronicles by DJ @DonJaco78474485]

🧵 Why Indian Pharma is Betting Big on CDMO Over Innovation (And It Makes Perfect Sense)

Innovation sounds glamorous until you see the reality: billions invested, 20+ years waiting, and no guarantee of success.

Take Wockhardt's " Zaynich"—25 YEARS in development, mountains of debt, assets sold just to keep the dream alive. One failed trial could've ended everything.

This is why legacy players like Cipla & Dr. Reddy's stayed in their lane: generics and off-patent APIs. Low risk, steady returns.

But the game is changing 🔄

What is a CDMO?
Contract Development & Manufacturing Organization

Think of it as a one-stop-shop: drug development + manufacturing, WITHOUT the billion-dollar risk.

The Business Model Revolution:

❌ Legacy Indian Pharma (Cipla, DRL):

▪️Generic drugs off-patent
▪️Low margin APIs
▪️Own the product = Own the risk
▪️Volume-based, commodity business

✅ New CDMO Model:

▪️Partner with innovators from discovery → commercial scale
▪️Offer end-to-end services: formulation development, clinical trial materials, analytical testing, scale-up, regulatory support
▪️Get paid during R&D phase—whether drug succeeds or NOT
▪️Client makes stage-gating decisions, you deliver the science
▪️Zero clinical trial failure risk on your books

Indian CDMO Players Rising:

🔹 Evolved Leaders: Divis Labs, Neuland Labs
(Generic API → Custom synthesis specialists)

🔹 In Transition: Laurus Labs
(Antiretroviral APIs → Advanced molecules)

🔹 Aggressive Entrants: Sai Life Sciences, Anthem Biosciences, Cohance Life Science, Dishman Carbogen Amcis

Why India? Why Now?

✓ China holds 13% global CRDMO market—supply chain derisk underway
✓ Indian CDMOs building capabilities in niche molecules & complex chemistry
✓ Cost advantage + quality infrastructure
✓ Global innovators desperately need alternatives

The Only Barrier?

Reputation & scale.

But as 90% of innovators rely on outsourcing and China risks escalate, Indian CDMOs with proven track records are becoming irreplaceable.

Key CDMO Advantages:
→ Speed to market
→ Cost savings (no capex for facilities)
→ Scalability on demand
→ Access to advanced technologies
→ Regulatory compliance expertise
→ Focus on core R&D while experts handle manufacturing

The Bottom Line:

Legacy pharma = Build, own, pray your drug works

CDMO = Build for others, get paid regardless

In a $220B market growing 7.5% annually.

Smart money isn't chasing the next blockbuster.

It's backing the infrastructure of pharma's future 🎯

#CDMO #Pharma #IndianPharma #ContractManufacturing #DivisLabs #LaurusLabs #Outsourcing #DrugDevelopment
#SaiLifeSciences, #AnthemBiosciences, #CohanceLifeScience, #DishmanCarbogenAmcis
#NeulandLabs #Zaynich

[Sabyasachi Das @offmyownbat]

Loved the video. Drives home the message very effectively.

#WorldEnvironmentDay

[Flt Lt Anoop Verma (Retd.) 🇮🇳 @FltLtAnoopVerma]

Show anything more beautiful than this

[Sabyasachi Das @offmyownbat]

Our new, exciting brand - delivering excellence for our customers and colleagues. #WeAreDXC

[Jibu Thomas @jibutoms]

@offmyownbat @DXCTechnology @HPE @HP @Worldtagin Happy Work anniversary Saby.

[Sabyasachi Das @offmyownbat]

Practicing what we preach: Collaborating in #VR. Early last month, my teammates @DXCworkplace sprang a surprise on my birthday. All of them gathered in a Virtual Reality room to celebrate the occasion. Super special. Thanks team! @DXCTechnology @Mrs_XR @ccorn_elius @VirbelaHQ

[Sabyasachi Das @offmyownbat]

Great chatting up with @mikemcd_mim & @JeffRMonaco on the #ModernWorkplace and some of the trends we are seeing in the market. What are some of the things you are seeing?

@DXCTechnology #FutureOfWork #HybridWorkplace #DigitalWorkplace #DXCTechTalk

https://t.co/08hylCEhqf

[Sabyasachi Das @offmyownbat]

.@DXCTechnology turned 4 today! We've come a long way since its inception. The last 8 months have been especially memorable. The opportunity to lead 1 of 6 Service Lines in DXC & make 7+ million enterprise end users smile every day has been a privilege. #newDXC #modernworkplace

[Sabyasachi Das @offmyownbat]

How effective (and short) would meetings be if people didn't talk for the sake of talking! @Tim_Denning in @TheAscentPub
https://t.co/AjFO0xkig3

[Sabyasachi Das @offmyownbat]

If someone was still doubting DXC's commitment to #digitalworkplace, the #MyWorkStyle announcement should seal the deal. @DXCworkplace @DXCTechnology

https://t.co/EA3jqTHhMz via @teknow_group

[Gerin Jacob | Cartoons @gerinjacob]

Rs 20000 cr last mile affordable housing package to benefit 3.5 lakh house owners! @nsitharaman how about other stalled projects like #NiteshCapeCod

[Siddharth Agarwal @TheSidAgarwal]

Long wait continues #NiteshCapeCod to get our dream home, judicial cases pending with no judgement, 100+ families are suffering, Please someone out there help us @rerakarnataka
@PMOIndia
@jagograhakjago
@htTweets
@Nitesh_Estates @BangaloreTimes1 @BangaloreMirror @timesofindia

[Manish_buyer_NiteshCapeCod @BuyerManish]

@Nitesh_Estates Pls give my flat in #NiteshCapeCod booked in 2012. It's been 7 long years, I plead guilty for the mistake my family made trusting @Nitesh_Estates @narendramodi @PMOIndia dear sir pls help, more than 100+ honest families impacted

[Jibu Thomas @jibutoms]

@Nitesh_Estates Fabulous!! I booked apartment in #NiteshCapeCode in 2011!!. All I am getting is false promises. Please handover our apartment, we can celebrate the Earth Day together! Enough complaints made!!

[Jibu Thomas @jibutoms]

@ceo_karnataka I downloaded my EPIC Details (SVF6315774) from https://t.co/oBqudblUR4 today to vote, but the electoral list shows some other name against the SlnNo. Preceding officer didn't allow me to vote!! #PrivilegeDenied #ceo_karnataka

[Narendra Gupta @narendrapgupta]

The faster @Nitesh_Estates give back people home better for Nitesh Estates. Please share plan with the homebuyers of #NiteshCapeCod and others when & how. Who can be saviours of home buyers paying rent and EMI for 6 years?
@PMOIndia @CMofKarnataka @RahulGandhi @narendramodi

[Narendra Gupta @narendrapgupta]

When will homebuyers of #NiteshCapeCod see the light at end of tunnel? #NiteshCapeCod construction is stopped by @Nitesh_Estates . Who can be saviour for home buyers who are paying EMI and rent for more than 6 years. @CMofKarnataka @PMOIndia

[Indu Balamurugan @ibmindu]

@PMOIndia
@FightForRERAInd
@CMofKarnataka
@Nitesh_Estates
@CheatedbyNitesh
Seeking attention.Want my money back. Who will teach the erring bank (Hdfc ltd) & fradulent builder (nitesh shetty) their lessons. What is the justice for a common tax payer in this country. Pls help.

[Raghunathan GR @grrnathan]

@jagograhakjago , marking this to the consumer affairs ministry for help.