From Slowdown to Surge: The CDMO Market Rebounds

May 18, 2026 - After a challenging first half of fiscal year 2026, the global CDMO market has staged a dramatic rebound. Multiple industry leaders report significant increases in RFPs and order inflows during H2 FY26.

Piramal Pharma Chairperson confirmed a strong pickup in RFPs and order inflows for CDMO business in H2 FY26 after a subdued first half.

The BIOSECURE Act: A Catalyst for CDMO Expansion

The BIOSECURE Act, enacted as part of the 2026 NDAA, has fundamentally altered pharmaceutical supply chain strategy. While existing contracts are grandfathered until 2032, the Act restricts Chinese firms participation in new projects starting in 2028.

• Small-molecule API outsourcing: The restructuring effect has expanded into low-molecular-weight API contract manufacturing.
• Regulatory validation complexity: Switching CDMO providers requires revalidating manufacturing sites.
• Regional manufacturing hubs: States launched targeted incentive programs for pharmaceutical manufacturing.

Capacity Expansion Across the Globe

India: Akums Drugs reported FY26 profit surging 27.3%, driven by global CDMO expansion.

South Korea: Samsung Biologics expands biologics manufacturing capacity.

Europe: Vetter broke ground on Saarlouis facility expansion.

United States: MilliporeSigma USD 76 million investment tripled ADC manufacturing capacity.

What This Means for API Suppliers

• Raw material volumes: CDMO production ramp drives demand for culture media and resins.
• Quality standards: CDMOs serving regulated markets require GMP-grade inputs.
• Long-term contracts: BIOSECURE Act favors multi-year supply agreements.
• Regional diversification: Multi-geography suppliers are better positioned.

Strategic Outlook

The CDMO market recovery reflects structural changes. For API suppliers, the imperative is to build CDMO relationships during this expansion phase.