Five CDMO stocks to add to your watchlist

Subscribe to enjoy similar stories. In the pharmaceutical world, a CDMO (contract development and manufacturing organization) is essentially the “powerhouse behind the brand". Instead of a pharma company building its own factories and labs, which costs a lo, they hire a CDMO to handle everything from the initial drug chemistry to mass-producing the final pills or injections.

The nation has pivoted from being the "pharmacy of the world" (focused on cheap generics) to a global CDMO hub. Here is why the Indian market is currently focused on this sector. India offers a significant cost advantage—often 30-50% lower than Western nations—without sacrificing technical expertise.

The nation has one of the highest numbers of US FDA-approved manufacturing plants outside the US. Global pharma giants are looking to diversify their supply chains to reduce reliance on China. India is the primary beneficiary of this shift, as companies seek stable, English-speaking, and legally compliant alternatives for drug development.

The Indian government’s production linked incentive (PLI) schemes are pumping money into the sector to encourage the manufacturing of "active pharmaceutical ingredients"—the raw materials that make drugs work. As the industry thrives, here are 5 CDMO stocks that you can add to your watchlist. This is not a stock recommendation.

The company is a global contract research, development and manufacturing organisation (CRDMO). Syngene International provides integrated scientific services to pharmaceutical, biotechnology, animal health, consumer goods, nutrition and speciality chemical companies worldwide. The company’s clients include some of the world's leaders in their fields, including top global multinationals.