Pharmaceutical Technologist - November 2007 - (Page 26)

Special feature // 2006 Frost & Sullivan report. India alone is set to draw $2.5 billion out of these outsourcing activities by 2010. The country’s talents in reverse engineering and clinical trials, along with its lower filing costs, intellecutal property rights, duties, and English-friendly environment are all compelling elements. They allow India to redeploy its efforts and become the outsourcing destination of choice. Only China can expect to rival it on the cost front, but despite India’s rising prices, notably on the human resources side, China cannot match India’s integrated package. Machinery makers Compared with its drugmakers and API producers, India’s pharmaceutical machinery makers are relatively small, but are emerging as a group to be reckoned with. From serving local customers with machines copied through reverse engineering, to locally producing equipment for global clients, the learning curve has been steep. Today, Indian pharmaceutical machinery makers are positioning themselves for even faster growth ahead. Considering the favorable investment environment in India’s pharma sector, thanks to manufacturing free zones, general modernization, the current good manufactring practice trend and the growing demand for global outsourcing, the future is bright at home for Indian industrialists. Abroad, cost constraints on generics producers and originators, as well as geographical redistribution of manufacturing locations, offer plenty of opportunities to the Indian machine makers to score foreign sales. Designs, services and efficiency have improved, rendering machines made in India serious competition for those made in Europe or the US. This opens up opportunities for cross-border partnerships, despite a few shortcomings. For example, some Indian technology is outdated (e.g., radiofrequency identification hasn’t made it through to Indian labelmakers or labeling machine producers); Indian producers lack the marketing networks necessary to establish a long-term overseas presence; and access to capital is tight. Market leaders are turning over less than $50 million, and despite great potential for spectacular development in the years ahead, are relatively small compared with their western competitors. Conclusion All together, these groups do not represent each and every player in the Indian pharmaceutical sector, but they do allow a better understanding of the strategies and actors at work. The industry’s dynamism is a striking reality, as exemplified by the number of ANDAs filed by local manufacturers, the highest in the world after the US. Local actors are well aware of their strengths and of the challenges ahead, and have taken to the global stage just as global actors are taking notice. A few high-profile acquisitions such as that of Matrix Laboratories Ltd (Secunderabad) by US generic company Mylan Laboratories Inc. (Canonsburg, PA, USA) demonstrate that India is on the minds of the global industry’s decision-makers. At a time of risk and opportunity, fast-growing pharmaceutical countries such as India cannot be ignored. PT 26 November 2007 l pharmaceutical technologist

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Pharmaceutical Technologist Contents Editor's Comment News Morpheus Feeling the Pressure Legal Crusaders The Holy-Grail of Start-Up Biotech Special Feature Q&A

Pharmaceutical Technologist - November 2007

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