The pharmaceutical industry is experiencing a period of uncertainty due to recent US policy directives, which are causing global pharmaceutical companies to delay major outsourcing decisions. Piramal Pharma, a contract development and manufacturing organization (CDMO), is taking a cautious approach and waiting for clarity on US policy before making any major commitments. Despite this, the company remains optimistic about its future prospects due to its geographically diverse network, which spans the US, UK, and India.
Piramal Pharma’s chairperson, Nandini Piramal, stated that decision-making has been prolonged, with clients holding off on commitments until there is more certainty. However, the company has seen an increase in requests for proposals (RFPs) and is confident that its network will position it well once the landscape stabilizes. The company anticipates muted growth in the short term, but expects a strong rebound by FY27 as the environment stabilizes and client commitments resume.
In FY25, Piramal Pharma reported a robust performance, with revenue increasing by 12% to ₹9,151 crore. The CDMO business contributed significantly, with revenue increasing by 15% year-on-year. The company also reported a 17% EBITDA margin and a fivefold increase in net profits. Looking ahead, Piramal Pharma is investing $90 million to expand two of its manufacturing facilities in the US, which aligns with its long-term goal of becoming a $2 billion revenue company by FY2030.
The US policy directives, introduced under President Donald Trump’s administration, have created a ripple of hesitation across the pharmaceutical sector. The directives call for domestic drug manufacturing and global price alignment for branded drugs, which has made it harder for CDMOs to secure new business from global pharma clients. However, Piramal Pharma is well-positioned to navigate this uncertainty due to its diverse network and strategic investments in the US. With a strong track record of performance and a clear roadmap for growth, Piramal Pharma is confident that it will emerge stronger once the industry uncertainty subsides.