Pharma MNCs increase focus in Indian market: ICRA
Jun 21 2012, 15:50 | By PTI
Multi-national pharma companies have increased their focus in the country following their rapid growth in the Indian market.
"After underperforming for several years, pharma MNCs have outperformed the industry growth in CY 2011," rating agency ICRA said in its report titled 'Indian Pharmaceutical Industry: Trends & Outlook' here.
MNCs have started witnessing growth at a faster pace as revenues grew by 15% in CY 2011 from 12% in CY 2009 and 9.8% in CY 2008. MNCs are now pursuing a comprehensive strategy for growth, with focus on chronics, branded generics and launch of patented products.
The industry has witnessed an increasing trend where marketing & distribution footprint of Indian companies and product portfolios of MNCs are being leveraged.
"After giving preference to acquisitions in the initial phase, Pharma MNCs have entered into tie-ups with domestic players, like Lupin with Eli Lilly, Cadila with Bayer and Sun with Merck," ICRA report said.
The growth in the country is driven by expansion in volumes and new drug introductions. The lifestyle-related disorders are driving the growth at faster pace in chronic segments, the report said.
Indian generic players are likely to be benefit from patent expiries in 2012; branded drugs worth USD 70 billion are likely to lose patent protections between 2013-17.
Domestic formulation business is likely to maintain healthy volume growth as emerging markets are expected to offer strong growth opportunity. However, ICRA warned that the delays in regulatory approvals could impede growth. The
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