Structure / Market Size The US Sector $ 12 billion valued pharmaceutical industry in India is expected to grow at an compound annual growth rate (CAGR) of 10-11 per cent. The industry spends around 18 per cent of its revenue on research and development (R&D).
The collapse of the property market has left the economy with a huge hole that will be difficult to fill. One of the few sectors that offers hope of growth is the pharmaceutical industry, with senior executives convinced that genuine opportunities remain for Ireland Inc.
Bafna Pharmaceuticals,shall be focussing mainly on life-style products, the company chariman and managing director, Mahaveer Chand, disclosed, in an exclusive interview with pharmaquest.biz
In one stroke, Swiss pharma giant Novartis AG could break into the league of top five players in the Rs 600-crore plus Indian eyecare market from its current position at 13, if its takeover of Alcon goes through seamlessly and eventually results in integration of Alcon India into the Indian arm of Novartis. Such a combined entity of Novartis and Alcon would then command a marketshare of 7.5% in the domestic eyecare market, just 1.4% less compared with the third and fourth ranked companies, FDC and Sun Pharma, which command 8.9% marketshare each.
Citing people familiar with the matter, pharmaquest.biz reported that Glaxo will take a 20-per cent stake in Dr. Reddy's Holdings Ltd., a family vehicle that owns 23.2 per cent of the Hyderabad-based Dr Reddy's Laboratories.
Lilliputs keep cropping up here and there, but can Gulliver be ignored?
The year had just begun, when Pfizer announced its $68-billion deal to acquire Wyeth, in January. On its heels came Merck & Co's $ 41-billion deal to acquire Schering-Plough Corporation, in March.
Many shifting focus to emerging economies in struggle to stay afloatMajor Japanese pharmaceutical makers are expediting projects to construct plants and expand sales channels in emerging economies, such as China and India.
From the national independence in the late 40s, the Indian companies have acted in two ways – either forging partnership with a globally acclaimed conglomerate or remaining as the raw material supplier to any multinational corporation. But now, it seems, those days are gone and Indian companies are desirous to capitalize on the changing worldwide fiscal scenario and Dr. Reddy’s Laboratories, Indian pharma major, is set to be the vanguard. How?
After East Europe and Mexico, Daiichi Sankyo, which bought out Ranbaxy Labs Ltd last year, is all set to leverage the latter’s marketing and distribution strength in six countries of Africa. This is the third instance in the last four months where Ranbaxy is helping Daiichi create a presence and consolidate its position in new emerging markets.
DR REDDY’S Laboratories plans to buy brands in Russia and introduce new products in India as it plans to scale up businesses in key emerging markets, a top company executive said.
Big Pharma made this a big year for Indian drugmakers. As multinational companies sought ways to cut costs and grow revenues, they ramped up their outsourcing programs and partnerships–and that has helped push sales growth past 20 percent for India's leading drugmakers, such as Ranbaxy Laboratories, Cipla, Dr Reddy's Laboratories, and Aurobindo Pharma, according to the report.
Global multinational drug companies need to outsource manufacturing to low-cost destinations like India has turned out to be a boon for leading drug companies in India such as Ranbaxy, Cipla, Dr Reddy’s Laboratories and Aurobindo.
India's pharmaceutical sector has stepped up its research & development expenditure in a bid to capture a larger market share in highly regulated and emerging markets.
In a sector that is seeing more inbound acquisitions of late, the latest being the Hospira-Orchid deal, the zeal to pursue large outbound acquisitions would be restricted for some time at least.
Orchid Chemicals & Pharmaceuticals has agreed to sell its injectables business to the US-based Hospira for around $400 million (Rs 1,850 crore), a valuation that represents a 20% premium to the Chennai-based firm’s market value and greatly boosts its financial flexibility.
German drugmaker Boehringer Ingelheim (BI) has started discussions with Cipla for a drug supply agreement that could see the Indian company supply generic drugs to the $17-billion German company for two of its drugs, including one of its best sellers. The Indian company is also discussing similar deals with other global pharma majors, said two persons familiar with the matter.
Another year of change and consolidation in the pharma industry began with the announcement of two mega-mergers and a long-expected takeover – and ends with the fallout of those mergers beginning to bite.
British drugmaker GlaxoSmithKline says it will pursue acquisitions in emerging markets, but expectations of family-owned companies are ‘unreasonable’ and the company would not pay such a price.
Mexico City has announced plans for what it hopes will be a world-class centre for biomedical and nano-medical research. To be called Campus Biometropolis, the city hopes the new centre will attract investment and become an "engine for the transformation" of Mexico's economy.