Why Aragen is moving more biologics to India
As biologics move onshore, Aragen keeps IPO route open.
- Jan 14, 2026,
- Updated Jan 14, 2026 2:54 PM IST
Goldman Sachs and Quadria Capital-backed Aragen Life Sciences is expanding India’s role in its global operations as demand rises for complex biologics, antibody–drug conjugates (ADCs) and high-potency manufacturing, backed by fresh capital and growing interest from multinational drugmakers reworking their supply chains.
The Hyderabad-headquartered contract research, development and manufacturing organisation (CRDMO), which works with 15 of the world’s top 20 pharmaceutical companies, already runs a significant share of its small-molecule development and chemistry programmes from five facilities in India. Over the next five years, a larger portion of its biologics and large-molecule work is expected to shift onshore as capabilities and talent depth improve.
Chief Executive Officer (CEO) Manni Kantipudi told Business Today that global pharma companies are gradually widening the scope of work assigned to India as pipelines move towards monoclonal antibodies, ADCs and other advanced therapies. “India has been an innovation partner for big pharma for several years now, and this trend will only accelerate with continued investments by both big pharma and the CRDMO industry in newer modalities,” he said. “The big challenge for the industry will be to build talent at scale. Historically, India has been exceptionally strong in chemistry, chemical engineering and process R&D, formulations. What we are doing at Aragen is upscaling this expertise into biology and biologics.”
Aragen currently carries out a large share of its global small-molecule development and chemistry work from India, while operating a California facility focused on early-stage biologics, including cell-line development and in-vitro pharmacology. That balance is beginning to change.
“Over the next five years, as biologics talent and high-potency capability deepen, we expect a greater proportion of global large-molecule work as well as complex biotherapeutics to be executed from our India sites,” Kantipudi said. “We have invested in biologics manufacturing, HPAPI and advanced modalities to support that shift.”
The move aligns with changing client priorities. Many global drugmakers are reassessing geographic concentration risks and looking for additional execution bases that combine regulatory compliance with scale.
“Yes, and the impact is material and growing steadily,” Kantipudi said when asked about geopolitical considerations shaping outsourcing decisions. “Many of our clients, including 15 of the top 20 global pharma companies, are actively rebalancing their China exposure by increasing outsourcing to India. What began as pilot projects is now scaling into long-term, multi-programme partnerships.”
A key enabler of Aragen’s India push is the $100 million investment secured from Quadria Capital, which the company has committed entirely to domestic capacity.
“All of this investment is committed to India,” Kantipudi said. “The capital supported the creation of our biologics manufacturing capability, expansion of our HPAPI [OEB-6] suite and strengthening of small-molecule discovery capacity.”
The investments are focused on oncology, ADCs and advanced biologics areas where global pharma pipelines are growing, and execution standards are demanding.
Kantipudi said pricing alone no longer determines outsourcing decisions for innovation-led programmes. “Cost is no longer the defining differentiator, especially for the novel drug developers we work with,” he said. “For these pharma and biotech customers, it is about how we help them advance targets faster and move new drugs to the clinic or the market.”
Aragen structures its services around two internal operating tracks. “We work on two broad strategic visions, ‘Concept to Clinic’ and ‘Concept to Commercial’,” Kantipudi said, outlining how the company supports programmes from discovery through commercial manufacturing.
To remain competitive, the company is investing in newer technologies and skills. “We are investing heavily in AI, machine learning and digital platforms, and continuously training our teams in emerging areas such as peptides, PROTACs, complex biologics and other modalities,” he said.
The company is also exploring collaborations with hospitals and clinical institutions to support translational research. “Our intention is to bridge the gap between academic discovery and industry-ready innovation,” Kantipudi said.
He added that Aragen is seeing more Indian scientists return from overseas. “With high-quality roles, meaningful research exposure and strong career paths available locally, more young scientists are choosing to build long-term careers in India.”
Industry estimates underline the scale of the opportunity. According to a BCG–IPSO study published recently, India’s CRDMO market, currently valued at about $3–3.5 billion, is projected to grow to $22–25 billion by 2035, with biologics and advanced modalities expanding at a faster pace than traditional chemistry services.
Kantipudi believes India can match established global hubs if quality discipline is maintained. “The single biggest risk is complacency around quality and compliance,” he said. “India’s progress depends on meeting global standards consistently at scale.”
For Aragen, that translates into continued investment, selective acquisitions and, potentially, access to public markets. “A public listing is under active evaluation at the Board level,” Kantipudi said.
Goldman Sachs and Quadria Capital-backed Aragen Life Sciences is expanding India’s role in its global operations as demand rises for complex biologics, antibody–drug conjugates (ADCs) and high-potency manufacturing, backed by fresh capital and growing interest from multinational drugmakers reworking their supply chains.
The Hyderabad-headquartered contract research, development and manufacturing organisation (CRDMO), which works with 15 of the world’s top 20 pharmaceutical companies, already runs a significant share of its small-molecule development and chemistry programmes from five facilities in India. Over the next five years, a larger portion of its biologics and large-molecule work is expected to shift onshore as capabilities and talent depth improve.
Chief Executive Officer (CEO) Manni Kantipudi told Business Today that global pharma companies are gradually widening the scope of work assigned to India as pipelines move towards monoclonal antibodies, ADCs and other advanced therapies. “India has been an innovation partner for big pharma for several years now, and this trend will only accelerate with continued investments by both big pharma and the CRDMO industry in newer modalities,” he said. “The big challenge for the industry will be to build talent at scale. Historically, India has been exceptionally strong in chemistry, chemical engineering and process R&D, formulations. What we are doing at Aragen is upscaling this expertise into biology and biologics.”
Aragen currently carries out a large share of its global small-molecule development and chemistry work from India, while operating a California facility focused on early-stage biologics, including cell-line development and in-vitro pharmacology. That balance is beginning to change.
“Over the next five years, as biologics talent and high-potency capability deepen, we expect a greater proportion of global large-molecule work as well as complex biotherapeutics to be executed from our India sites,” Kantipudi said. “We have invested in biologics manufacturing, HPAPI and advanced modalities to support that shift.”
The move aligns with changing client priorities. Many global drugmakers are reassessing geographic concentration risks and looking for additional execution bases that combine regulatory compliance with scale.
“Yes, and the impact is material and growing steadily,” Kantipudi said when asked about geopolitical considerations shaping outsourcing decisions. “Many of our clients, including 15 of the top 20 global pharma companies, are actively rebalancing their China exposure by increasing outsourcing to India. What began as pilot projects is now scaling into long-term, multi-programme partnerships.”
A key enabler of Aragen’s India push is the $100 million investment secured from Quadria Capital, which the company has committed entirely to domestic capacity.
“All of this investment is committed to India,” Kantipudi said. “The capital supported the creation of our biologics manufacturing capability, expansion of our HPAPI [OEB-6] suite and strengthening of small-molecule discovery capacity.”
The investments are focused on oncology, ADCs and advanced biologics areas where global pharma pipelines are growing, and execution standards are demanding.
Kantipudi said pricing alone no longer determines outsourcing decisions for innovation-led programmes. “Cost is no longer the defining differentiator, especially for the novel drug developers we work with,” he said. “For these pharma and biotech customers, it is about how we help them advance targets faster and move new drugs to the clinic or the market.”
Aragen structures its services around two internal operating tracks. “We work on two broad strategic visions, ‘Concept to Clinic’ and ‘Concept to Commercial’,” Kantipudi said, outlining how the company supports programmes from discovery through commercial manufacturing.
To remain competitive, the company is investing in newer technologies and skills. “We are investing heavily in AI, machine learning and digital platforms, and continuously training our teams in emerging areas such as peptides, PROTACs, complex biologics and other modalities,” he said.
The company is also exploring collaborations with hospitals and clinical institutions to support translational research. “Our intention is to bridge the gap between academic discovery and industry-ready innovation,” Kantipudi said.
He added that Aragen is seeing more Indian scientists return from overseas. “With high-quality roles, meaningful research exposure and strong career paths available locally, more young scientists are choosing to build long-term careers in India.”
Industry estimates underline the scale of the opportunity. According to a BCG–IPSO study published recently, India’s CRDMO market, currently valued at about $3–3.5 billion, is projected to grow to $22–25 billion by 2035, with biologics and advanced modalities expanding at a faster pace than traditional chemistry services.
Kantipudi believes India can match established global hubs if quality discipline is maintained. “The single biggest risk is complacency around quality and compliance,” he said. “India’s progress depends on meeting global standards consistently at scale.”
For Aragen, that translates into continued investment, selective acquisitions and, potentially, access to public markets. “A public listing is under active evaluation at the Board level,” Kantipudi said.