Contract Manufacturing Organizations (CMOs) across the Asia-Pacific region have more than doubled their aggregate production capacity over the past five years, according to a new industry report. The expansion spans oral solid dosage, sterile injectables, and increasingly, biological drug substances.
India remains the largest contributor, with over 40 new GMP-certified facilities coming online since 2021. South Korea has emerged as a biologics manufacturing powerhouse, while Vietnam and Indonesia are attracting significant greenfield investments in generic drug production.
The capacity surge is reshaping global supply chain strategies. Multinational pharmaceutical companies that previously relied on single-region sourcing are now establishing multi-site manufacturing networks that span at least two geographies. This redundancy, accelerated by lessons learned during COVID-19 supply disruptions, is becoming a standard requirement in procurement policies.
For marketplace participants, the practical implication is clear: buyers have more options than ever, but the evaluation framework must extend beyond price. Total cost of ownership ??? including logistics, quality compliance costs, lead times, and regulatory filing support ??? should drive partner selection.