How US's new Biosecure Act will affect Indian companies
11 Dec 2025

The US House of Representatives has approved the National Defense Authorization Act (NDAA), which now heads to the Senate.

The final version includes the US Biosecure Act, which was already approved by the Senate as part of the NDAA on October 9.

Brokerage firm Macquarie expects this legislation will be enacted by end of this year, and will accelerate growth for Indian contract development and manufacturing organizations (CDMOs).

A growth catalyst for Indian CDMOs
Growth forecast

Macquarie predicts the Biosecure Act will drive a high-ten compound annual growth rate (CAGR) for Indian CDMOs over the next five years, as opposed to a low-ten growth in the previous five.

However, it also cautions that revenue and earnings from projects due to this legislation shall only start contributing after a 12-24 month lag.

Indian CDMO market projected to reach $20B by 2030
Market expansion

Macquarie Capital told CNBC-TV18 that despite no major earnings boost in the next year, the underlying business in India is poised for high-ten growth.

The local CDMO market could expand to $20 billion by 2030, up from about $7 billion now.

Within this sector, Macquarie's preferred picks are Divi's Labs and Syngene.

Sai Life Sciences CFO optimistic about Biosecure Act
Industry perspective

Siva Chittor, the CFO of Sai Life Sciences, has dismissed concerns about the dilution of this legislation.

He said the Biosecure Act is clearly positive for Indian CDMO companies and those waiting for final clarity are now gearing up to act on it.

Chittor expects Indian CDMOs to perform better in the coming years, noting that pharma makes up 90% of Sai Life Sciences' overall business.