The Indian pharma industry is already on a strong position in word for production. Indiais the 4
largest producer by volume and 13
by cost in world in pharmaceutical industry.India is having highest USFDA approved plant (75 plants in 2008) for production after USA. The cost of production is very less in India (20
times compare to USA). But stillthere is a need of improvement.The policies to make India a strong pharma hub can include1.The quality for the export and domestic market are not kept same. Generally it isknown that the quality of domestic formulation is on a lower side than that of theexport formulation. It can be seen easily by packaging. Thus quality of the product should be equal to that of export.2.Improve the knowledge of IPR. It was well know that before 2005, India has tofight to protect for the ancient use of many medicinal plant as some foreigncountries were claiming the patent of it. Government organizations such as‘PETT” have done good remarks to file patent to individual by funding them for their innovations.The government needs to provide clear guidelines on IPR andresolve issues related to data exclusivity, incremental innovation, etc. This will boost the confidence of MNCs to launch their products in India.3.The investment for the R & D is kept very less. Government has taken good step by giving exception in tax for the companies which invest in R & D.India’s adoption of WTO’s TRIPS in 2005 has accelerated its role in global outsourcing.Many companies like Astra Zeneca have already started outsourcing from India. As big pharma companies like Pfizer, Astra Zeneca, GSK, Novartis, Sanofi-Aventis, J&J,Merck, Roche, etc have started cost reduction aggressively which has created new market potential.Due to India’s potential of producing high quality pharmaceutical product at a low lost,many companies have shifted their focus from pure generics to contract research andmanufacturing. Companies like Dishman pharma, Jubilant Organosys, PiramalHealthcare, Dr. Reddy’s Lab, Divi’s Lab, Shasun Pharma, Suven Life Sciences, Cadialhealth care, Hikal, etc are the key player for CRAMS (Contract Research AndManufacturing Services). Many Indian companies like Dishman (acquisition of carbogenamcisAG, Synprotec- UK), Jubilant (Hollister Stier-US, Clinsys Clinical-US, Cadista pahrma- US), Piramal healthcare (morpeth- UK, Avecia- UK, Torcan-Canada) havemade acquisition which is playing important role in CRAMS.Even process patent known as process re-engineering had played vital role in facilitatingIndian pharma to develop its own skills, due to which India is the cost effective drugmanufacturer.