With Barack Obama's election as the President of the United States, outsourcing of activities from the US to the Indian pharma industry might get adversely affected, a top industry official said.
"President Obama has a conservative stance on outsourcing of services since he wants to create jobs and protect existing ones (in the US). As the Indian pharma industry is sustaining mainly on outsourcing, especially from the US, the future does not appear very smooth," pharma major, Promed Group's President, Deepak Bahri said.
The Promed group manufactures and delivers branded as well as generic pharmaceutical formulations to Russia, CIS, south-east Asian countries, the UK and EU.
There will be increased competition in the US generics market since the US Food and Drug Administration (FDA) – approved plants will enable many players to enter into the US market, earlier ruled exclusively by a few big companies, Bahri said.
"Companies that are cost-effective and good in supplies will survive," Bahri said. With the global economy in a recession, it would make business sense for Indian pharma companies to address the CIS markets. "CIS nations are taking aggressive steps to address their healthcare sector. Therefore, Indian pharma companies should be ready to grab the opportunities available in these markets," he said.
Though the healthcare systems in the CIS countries are in a process of reformation, there are several challenges for the drug manufacturers.