The Rise of the Indian Pharmaceutical Companies

The Indian Pharmaceutical industry is the 4th largest industries in the world. It consists of around 20,000 businesses. Pharmaceutical companies in India are on a roll both on domestic as well as international grounds. Pharmaceutical companies boast of skillful workforce along with the latest technology in use. These features help to expand their market and business overseas.

The latest trend in the pharmaceutical business is the tie-ups between Multi National Companies and Indian Pharmaceutical companies. These MNCs turn to their Indian counterparts to achieve cost-efficiency in terms of R & D. Besides offering skill and technology, offer affordable Research and Development facilities. For example, mergers and acquisitions between MNCs and Indian pharmaceutical companies are common for research on third world diseases like cancer, AIDS, etc.

Moreover, India is gradually moving up from being just a service provider to a value-add in profits. Here, MNCs purchase / license new products or share Intellectual Property. Pharmaceutical companies of India are slowly becoming a popular destination for collaborative research and development.

Adding to this is the success of the Indian pharmaceutical industry as an exporter of high quality generic drugs. The companies owe this success to the system of product patents which were introduced on 1stJanuary, 2005. Now, the Indian pharmaceutical industry exports drugs to approximately 65 countries around the world with the United States as its biggest market. The industry's export was worth US 3.75 billion dollars and growing at a compound annual rate of 22.7% according to the National Pharmaceuticals Policy for 2006.

However, the these companies can hope to achieve more by discovering untapped markets both in India as well as abroad. Another area that calls for attention is the Research & Development department. The government needs to invest more for Research & Development as innovative drugs are high on demand.

Also, the relationship between pharmaceuticals and biotechnology in India needs to be more cemented. This is because biotechnology has a lot of room for growth with the rise in vaccines and bio - services. Lacks of funding and skilled employees are the obstacles for the development of biotechnology in Indian pharmaceutical companies. However, a wind of change is expected as the drugs go off patent, giving the Indian pharmaceutical companies an opportunity to upgrade their manufacturing capabilities.

To conclude, the companies have a lot of potential in store. It is estimated that the Indian pharmaceutical industry will soon enter the top 10 list of the pharmaceutical industries in the world.

Pharmaceutical companies of India are growing its pharmaceutical business to keep the feet stuck in world pharma industry.

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