Kemwell Biopharma, which headquartered in Bangalore, is one-of-India's largest contract manufacturers of pharmaceuticals with over 30 years of experience. The company develops and manufactures pharmaceuticals and biopharmaceuticals for some of the world's top multinational companies, including GlaxoSmithKline, Bayer, Johnson & Johnson, Novartis and Pfizer. It employs more than 1,000 employees worldwide and has seven production facilities (five in India and two in Sweden). Kemwell recently expanded into development and cGMP production of biologics, by setting up state-of-the-art manufacturing facilities and laboratories in Bangalore. Kemwell presently supplies to over 80 countries worldwide, including America, Europe, Japan and India.

BioSpectrum spoke to Mr Anurag Bagaria, chairman and managing director, Kemwell Biopharma, India, about his views on the contract research and manufacturing services (CRAMS) sector and the future plans of the company. Excerpts of the interview.

What according to you is the current market size and status of contract research and manufacturing services (CRAMS) market in India?
The current size of the CRAMS market in India is about $4-to-4.5 billion as compared to $80-to-90 billion globally. Comparatively, India is still a small player in the market but is swiftly growing.

Is India a preferred destination for outsourcing of manufacturing services including biologicals, and API? What are the challenges before the companies operating in the CRAMS space in India?
India is definitely an upcoming destination for outsourcing for pharmaceutical and biopharmaceutical services. The factors for this success include, a high level of compliance to GMP regulations, English-speaking and well a qualified scientific manpower, and lower costs. In order to continue to grow in the CRAMS space, India will need to provide more clarity on intellectual property (IP) protection, regulations and timelines for regulatory approvals. Furthermore, as India is becoming an ideal destination to service the emerging markets, our commerce ministry needs to move forward and finalize the free trade agreements (FTAs) with these markets.

Do you foresee global contract manufacturing organizations (CMOs) setting up their operations in India in the near future as compared to other Asian countries?
The fact that global players are setting up operations in Asia, including India, shows that the country is becoming a destination for providing these services. While India provides many advantages like skilled manpower, GMP knowledge, and substantial ancillary industry (equipment and materials suppliers), our infrastructure is a drag on our attractiveness. Furthermore, countries like Singapore and Malaysia are providing many tax incentives and access to low-cost capital that have always been a big attraction for the biopharmaceutical industry. Going forward a lot will also depend on trade barriers set up by local Asian countries that promote local manufacturing.