OSCM

GROUP 3

Name of the Publication : Business Standard (Delhi Edition)

Date of Issue : 16 August 2009

Page No. : 2

Name of the Author : PB Jayakumar

Email 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 INDIA
higher than CHINA ,EASTERN EUROPE,SINGAPORE and IRELAND.

• Has close to 100 manufacturing facilities approved by the US Food and Drug
Administration(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 skilled
manpower 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 and
development costs, and pressure to reduce healthcare costs are forcing Big Pharma to rope in
strategic partners to contain manufacturing and drug development expenses.

Pfizer entered into a partnership with a relatively unknown Ahmedabad based injectible drug
manufacturing specialist, Chris Lifesciences, to access products that are off-patent and have lost
exclusively 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’s
and licenced and supplied by GSK in various countries in Africa, West Asia, Asia Pcific and Latin
America.

GROUP MEMBERS
Sujata Rohilla C 68 Akshat Rana C 83

Siddharth Joshi C 85 Zuhaib Mirza C 82