PharmaSphere: Global Generics Strategy - Key Drivers, Markets and Trends in 2013

LONDON - March 25, 2013 - PRLog -- Previously considered a thorn in the side of Big Pharma, the Indian generics industry is emerging as a key hunting ground for Multinational Corporations (MNCs) looking to extend their reach into emerging economies. Domestic players, however, may pay the price for the intrusion, states the latest report from research and consulting firm GlobalData.

The new report* – the first in the company’s new PharmaSphere series – explains that while the Indian generics industry has witnessed significant growth over the last year, pharmaceutical giants, which are keen to leverage the nation’s relatively low cost of production and high quality facilities, may slow the growth of India’s domestic companies.

Adefemi Adenuga, analyst with GlobalData’s Industry Dynamics Team, says: “Indian generics companies, particularly the smaller ones, do not possess the capabilities to match those of these larger players, and are therefore not able to enjoy the resultant scope and scale economies, which are two key requirements in the price-sensitive generics business.”

Indeed, MNCs are actively positioning themselves to capture a significant portion of the Indian generics market, primarily through authorized generic versions of their offpatent blockbusters. Adenuga states: “The branded generics offered by these large companies may appeal more to the brand-sensitive portion of the Indian population, which now numbers over 1.2 billion, especially if these products are sold at prices that compete well with unbranded pharmaceuticals.”

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The GlobalData analyst also believes that the future of the Indian generics market will be shaped by how its government reacts to the current pressure by MNCs regarding the nation’s patent laws. Both Bayer and Novartis have launched strong challenges against India’s compulsory licensing of key drugs over the last 12 months.

“Although the government is currently standing its ground, increasing pressure from Big Pharma may force it to relax some of its more stringent laws to favor foreign companies, considering the economic implications of their presence in the country.

“This will come as a blow to domestic generics manufacturers, who often reap the benefits of compulsory licenses and legal rulings against foreign multinationals.”

This report provides strategic analysis of the global generics industry and discusses key trends, significant M&A deals in 2012, and describes the operations strategy of these companies.

This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.

GlobalData is a leading global research and consulting firm offering advanced analytics to help clients make better, more informed decisions every day. Our research and analysis is based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year, enabling us to offer the most relevant, reliable and actionable strategic business intelligence available for a wide range of industries.

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