Sai Life Sciences rose as much as 4% to a fresh life time high of Rs 1,578 on Wednesday, extending its rally on a healthy business outlook.

Trading volumes told their own story. Combined shares changing hands on the NSE and BSE crossed 1.4 million, more than double the counter’s usual average for a session.

Over the past two trading days alone, the stock has rallied 8%. It is up 19% in the past month, even as the broader Sensex slipped nearly 3% in the same period.

Zoom out to the past seven months, and the stock has climbed roughly 80%. Sai Life Sciences works in contract research, development and manufacturing, known as CRDMO, for pharmaceutical and biotech clients.

This space is growing fast in India, helped by global drugmakers outsourcing more of their research and manufacturing work here.

India’s CRDMO market is currently pegged at around $3.4 to $4 billion for this calendar year.

The company’s own annual report points to a much bigger opportunity ahead, projecting the industry could grow to $7 to $9 billion by 2030, and further to $14 to $18 billion by 2035, at a compound annual growth rate of 15 to 16%.

Part of this growth is coming from newer, more complex therapies such as antibody drug conjugates, cell and gene therapies, and peptides, all of which need specialised manufacturing skills, the company said.

Indian CRDMO players are also benefiting from a strong base of scientific talent and a growing network of USFDA-approved manufacturing plants.

On business visibility, Sai Life Sciences has said it already has more than 90% of its targeted revenue for the current financial year covered by orders already in hand, a sign of strong forward bookings.

As of 13:46 pm on September 2, shares of Sai Life Sciences were trading at Rs 1,572.30, up 3.57% for the day. The stock has now gained close to 75% since the start of the year.

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