Growth strategies of indian pharmaceutical firms after 2005

Abstract

The Indian Pharmaceutical market provides an opportunity to several multinational firms. These firms are larger both in scale of operations as well as portfolio of products as compared to the Indian firms. The Indian firms have typically been low cost producers of bulk drugs and formulations by developing process capabilities and reverse engineering products that have been developed in other markets, using the Indian patent laws that allow for process patents. However, with the WTO laying down requirements of implementation of product related patents by 2005, the Indian Pharmaceutical industry is set to change. The roles in the value chain may become redefined or much smaller, and collaborations with different players, be they firms with strong marketing and distribution or R&D capabilities are set to take place. This paper examines the trends in the Indian and global industry over the past few years and outlines key strategies that the Indian Pharmaceutical players should take in view of the entry by foreign companies and the patent laws set to take place.