Name of the Publication : Business Standard (Delhi Edition)Date of Issue : 16 August 2009Page No. : 2Name of the Author : PB JayakumarEmail ID of Author : Not mentioned
BIG PHARMA COMPANIES JOIN OUTSOURCING QUEUE
Reasons why India is emerging as an inviting destination for outsourcing drug production
Over 80% of the 38 big and medium -sized pharma companies across the world rated INDIAhigher than CHINA ,EASTERN EUROPE,SINGAPORE and IRELAND.
Has close to 100 manufacturing facilities approved by the US Food and DrugAdministration(FDA),the largest after the US.
Offers a significant cost quality proposition in end to end research and development ,with potential savings of over 60% as compared to the US, coupled with a strong supply of skilledmanpower and capital efficiency.
Drug production outsourcing industry to grow over 43% annually, thrice the global growth rate.
Diminishing number of new drugs ,as against existing drugs going off-patent, high research anddevelopment costs, and pressure to reduce healthcare costs are forcing Big Pharma to rope instrategic partners to contain manufacturing and drug development expenses.Pfizer entered into a partnership with a relatively unknown Ahmedabad based injectible drugmanufacturing specialist, Chris Lifesciences, to access products that are off-patent and have lostexclusively in the US, Canada, Australia, New Zealand and Europe. In June the second largest drug maker Glaxo Smithline, entered into a similar alliance with Dr Reddy’s to access the current portfolio and future pipelines of more than 100 branded pharmaceuticals in the cardio vascular area,diabetes,oncology,gastroenterology and pain management.Products wii be manufactured by Dr Reddy’sand licenced and supplied by GSK in various countries in Africa, West Asia, Asia Pcific and LatinAmerica.