European Pharmaceutical Manufacturer spoke to Ashu Tandon, CCO, Aragen at CPHI Frankfurt about their 2026 predictions for the company.
1. We’re seeing early signs of biotech funding stabilising. What trends are you observing on the ground — both for biologics and small-molecule programmes — and how is that influencing the type of projects coming your way?
Aragen
We are definitely seeing the early signs of biotech funding stabilising, but the recovery is uneven. The strongest momentum right now is with companies that already have assets in clinical development, especially Phase I and Phase II programmes. On a relative basis, these teams are securing capital more easily, and that is directly translating into increased demand for development-stage biologics and small-molecule work at Aragen.
Discovery funding, however, is still catching up. The early pipeline remains thinner than pre-2022 levels, but we expect that to rebound as confidence continues to return to the market. For us, the net effect is an uptick in programmes that require integrated support — cell line development, CMC readiness, IND-enabling chemistry — as companies push viable assets forward quickly. As the front end of the funnel recovers, we anticipate a fuller flow of discovery projects returning as well.
2. Your Bangalore biologics facility recently dispatched its first GMP batches. How do you see this site working with your Morgan Hill campus to create global scale, redundancy, and greater flexibility for clients?
Dispatching the first GMP batches from our Bangalore biologics facility was a major milestone, especially because the strategy behind this site has been in motion for four years. Our model has always been to leverage our California base in Morgan Hill for early-stage biologics — cell line development, process development — and then transfer those processes seamlessly into Bangalore for scale-up and GMP manufacturing.
The fact that the first three commercial orders for Bangalore all originated from our California teams confirms that the strategy is working exactly as intended. Together, Morgan Hill and Bangalore create a dual-continent platform that gives clients redundancy, capacity flexibility and business continuity. As the pipeline expands, we expect to deepen this California-to-India tech-transfer model, strengthening global reach while maintaining consistent quality.
3. Your new HPAPI OEB-6 suite is nearly ready. What signals are you receiving from clients about the direction of high-potency oncology and ADC programmes, and how do you expect this field to evolve?
Our HPAPI facility is a very significant capability for Aragen and for India. It allows us to handle the highest-potency cytotoxic molecules that cannot be safely managed in a standard plant. This immediately opens the door to a new cohort of oncology innovators who need partners experienced with these extremely potent warheads.
We expect this field to advance on several fronts. Payloads are becoming more potent and more precise, and developers are moving toward smarter targeting technologies such as bispecifics, trispecifics and other multifunctional antibody formats. These modalities require tighter integration between biologics and HPAPI handling, and that’s exactly what our Bangalore biologics site and new OEB-6 suite will enable. Overall, ADCs and high-potency oncology programmes are moving toward more sophisticated designs and more integrated development models. With validation nearly complete, this positions us to serve one of the fastest-evolving segments in oncology.
4. Beyond manufacturing, we’ve heard you’re investing in AI capabilities within your discovery platforms. Can you share how AI is shaping early-stage workflows such as hit identification, data integration, predictive chemistry, or assay design?
We’ve made a meaningful commitment to AI, with a dedicated team of around 30 specialists working across discovery, development and manufacturing platforms. The goal isn’t to use AI in isolated pockets but to integrate it deeply into all aspects of our DNA as a company.
In discovery, AI is accelerating hit identification, improving predictive chemistry, supporting assay design and enabling richer integration of data from diverse screening and modelling platforms. Beyond science, we’re applying AI to supply-chain optimisation, HR analytics and finance which is helping drive efficiency across the enterprise. Over time, these capabilities will allow us to deliver faster decisions, tighter design–test–analyse cycles and more predictable outcomes for clients.
5. From your vantage point, how are biotech clients shifting in modality focus, outsourcing strategy, or geographic preferences — and how are you positioning Aragen to meet those evolving expectations in 2026 and beyond?
Clients are clearly broadening their modality focus. Traditional small molecules remain important, but we’re seeing greater demand for peptides, oligonucleotides, enzymes, monoclonal antibodies and ADCs. Our strategy is to maintain platform strength across these diverse modalities so clients can work with a single partner as their pipelines evolve.
Geographically, companies are rebalancing their supply chains. The combination of COVID-era disruptions and ongoing geopolitical tensions has encouraged innovators to diversify away from single-country dependency. India is emerging as a key node in this diversification, not by default but because the ecosystem is strengthening rapidly. Initiatives like IPSO — where Aragen is a founding member and co-chair — are focused on elevating India’s capability in supply chain, talent and government engagement so the country can deliver reliably at global scale.
As we look to 2026 and beyond, our positioning is simple: build capabilities across modalities, operate seamlessly across geographies, and invest in technologies like AI and HPAPI that anticipate where our clients’ science is heading. Companies want partners who can adapt quickly, communicate transparently and manage both scientific risk and overall programme cost. This shift is driving more time-sensitive, expectation-driven programmes to Aragen.