The global economic slowdown may help boost pharma outsourcing to India but not just yet. Industry watchers say that contract research and manufacturing services (Crams), in which companies such as Piramal Healthcare and Dishman Pharmaceuticals and Chemicals are major players, is likely to see a slowdown in the coming 1-2 quarters. In the long run, however, the economic headwinds are likely to boost the Crams business.

With a faltering economy, increased competition generated by generic drugs, skyrocketing costs of marketing blockbusters, and unsustainable R&D expenditures, pharmaceutical companies are looking for ways to reduce costs and improve the effectiveness of their drug discovery and development operations.