India’s CDMO Sector Set for Takeoff: Vikas Khemani Calls It the ‘IT Boom of Pharma’

India's contract drug manufacturing sector (CDMO) is experiencing a revolution boom, just like the IT boom in the 1990s, according to Carnelian Asset Advisors' founder Vikas Khemani. Policy measures and post-COVID supply chain shifts have opened a "once-in-a-generation opportunity" for Indian CDMOs, as multinational pharmaceutical giants now overwhelm the sector with record queries. Khemani believes that the confluence of advanced domestic capability and an uptick in global demand, driven by the China Plus One strategy and US policy changes, has set the sector up for explosive growth, with the potential to create a few $10–20 billion businesses in the next decade. Growth may not be linear, but he considers the sector a long-term wealth creator, much like IT was for India, and expects valuations to catch up as earnings gain momentum. Source: Moneycontrol