India’s CRDMO Shift Puts Jubilant and Sai in Focus

Drug companies often hire other companies to help find and test new medicines.

Some service providers can also help develop and manufacture those medicines.

India’s share of this global business is still small, but the industry is expected to grow.

Jubilant Pharmova and Sai Life Science are investing in more facilities and research skills.

Both report growth in their drug-discovery work, while Sai says this work is becoming a larger part of its business.

Sai is spending heavily and still has unused capacity, so it needs to turn demand into work for its facilities.

Jubilant is also expanding, but its profits have moved up and down and its debt increased in the latest quarter described.

Drug projects can fail, and companies face competition from China and changes brought by AI.

The article says investors should watch execution, customer demand and returns rather than relying on growth forecasts alone.