Published on Mon, Apr 23, 2007 at 08:31 | Source : Moneycontrol.com
Updated at Tue, Apr 24, 2007 at 11:19
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Drug-makers build business bridges in Japan
Drug-maker Ranbaxy is there through its joint venture with Nippon Chemiphar. Dishman Pharmaceuticals struck an alliance with Azzuro Corporation this year. And last week, Zydus Cadila acquired 100 per cent equity in Nippon Universal Pharmaceutical Ltd.
Drug-maker Ranbaxy is there through its joint venture with Nippon Chemiphar. Dishman Pharmaceuticals struck an alliance with Azzuro Corporation this year. And last week, Zydus Cadila acquired 100 per cent equity in Nippon Universal Pharmaceutical Ltd.
Dr Reddy's Laboratories is reportedly evaluating potential acquisition targets in this market. And Indoco Remedies has just made another exploratory trip to establish business relations here.
The market these Indian drug-makers are actively courting is Japan, the world's second largest individual market for medicines. With revenues grossing $60 billion, the Japanese market for medicines contributes about 11 per cent of the world's pharmaceutical market, say analysts involved in helping domestic drug companies chart their course in Japan.
Active corridor
The Indo-Japanese corridor will see more activity, observes Mr Aluri Srinivasa Rao, Director, Investments, ICICI Venture Funds. Generic medicines have a low penetration in Japan, but that is changing with cost pressures driving regulators to draft laws ensuring better acceptance of generics, he says.
Though Japan is relatively new terrain for Indian drug-makers, recent regulatory changes have made it easier for overseas companies to bring their products into Japan, points out Ernst & Young's Partner, Mr Utkarsh Palnitkar.
The market these Indian drug-makers are actively courting is Japan, the world's second largest individual market for medicines. With revenues grossing $60 billion, the Japanese market for medicines contributes about 11 per cent of the world's pharmaceutical market, say analysts involved in helping domestic drug companies chart their course in Japan. 
