PiR News & Press Releases
India to become pharmaceutical innovation powerhouse – fact or fiction?
India is rapidly becoming a major international player in the life sciences arena and is poised to take full advantage of its capability to provide world-class products and services at competitive prices. In a report by the New York based global healthcare investments firm, Mehta Partners, Indian pharmaceutical companies “offer above average management, achieving superior revenue growth while maintaining good margins in a highly competitive segment”.
As Indian companies expand and mature there will be a need to focus more resources into research and development in order to build value through novel medicines and therapies. In March 2009, Ram Vilas Paswan, India's Minister for Chemicals and Fertilizers, announced plans to make the country 'one of the top five pharma hubs withinthe next four years'. The plan, which is awaiting approval by Prime Minister Manmohan Singh, could see the country invest more than $1 billion to promote pharmaceutical innovation over the next five years. The initiative would focus on developing drugs for neglected and 'country-specific' diseases, and could create more than 50 0000 jobs in the sector.
The Minister said the current state of R&D and infrastructure in the Indian pharmaceutical industry is weak. “we need to bolster it immediately – once this proposal comes through, India will become a global pharma hub. Five out of 10 drugs being discovered in the world will be in India. We will also ensure patenting of our own drugs “the Minister added.
As India develops new compounds over the coming years the challenges of launching products in global markets creates a requirement for different skills to be introduced in to companies to facilitate needs in areas such as; the drug development process, compliance, safety and commercialisation – diversity will be essential in India’s move toward globalisation. It’s not just a question of investment in Research but all of the downstream processes required to commercialise the products. Can India maintain its cost competitiveness when entering a research based business model or will it choose to partner with bigger pharma as a shorter route to market with more shared risk and returns? One thing is for certain, the cost of filling the skills gaps and bridging cultural boundaries in order to provide a global perspective is bound to increase as more and more products reach clinical development and the market.
For the Indian pharmaceutical market to realise its potential for growth, which according to McKinsey & Co is expected to “undergo significant transformation to become one of the top 10 pharmaceutical markets, growing in size by 2015 to $20b annual sales” it will need to identify and attract world class talent both within India and throughout the rest of the world.
To discuss further, please contact Maurice Herring on 01480 309010