US Biosecure Act Boosts Indian Pharma: CDMO Stocks Gained Upto 5%

Shares of Indian contract development and manufacturing (CDMO) companies rose on Friday after the US Senate passed the National Defense Authorisation Act (NDAA), which includes an amended version of the Biosecure Act.

The legislation seeks to curb US investments in sensitive Chinese industries and protect American biotech and health data from potential foreign threats, especially from Chinese firms. It also aims to reduce the country’s reliance on overseas laboratories and strengthen domestic biotech security.

Following the announcement, the Nifty Pharma index rose 1.56%, led by Divi’s Labs, Piramal Pharma, and Wockhardt, which gained 5%, 4.4%, and 3% each, respectively.

How Does It Help Indian Companies?

According to brokerage notes, the move could benefit Indian pharma players such as Divi’s Laboratories, Syngene International, Jubilant Pharmova, and Neuland Labs, as global companies look to reduce dependency on China.

India already hosts the largest number of USFDA-approved manufacturing plants outside the United States, and pharmaceutical imports from India have grown from $6 million in 2000 to $11 billion in 2023.

Analysts believe the Biosecure Act will accelerate this trend over the next decade, supported by an eight-year grandfathering clause that allows US companies time to transition from Chinese suppliers.

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