Pharma MNCs make beeline for India

It is now the beginning of the reverse flow. Even as the Indian pharma companies have been on a shopping spree overseas, it is now the turn ...

It is now the beginning of the reverse flow. Even as the Indian pharma companies have been on a shopping spree overseas, it is now the turn of MNC drug majors to flock to India.

The last six months has seen a slew of foreign drug companies finalise their plans to set up shop in India even though they had got the approval the Foreign Investment Promotion Board FIPB much earlier. The advent of the product patent regime from January 2005 and the end of the process patent regime has been the main driving force. Under the present process patent regime, Indian pharma firms can manufacture the same drugs through a different process which is prohibited under the product patent regime.

Japan8217;s EiFai Pharma is the latest entrant in the Indian pharma market. The company is in the process of setting up a manufacturing facility here.

Canada-based Apotex Corporation is also setting up an R038;D centre in Bangalore, while Germany8217;s Haxal AG is setting up a formulation plant in the same city at an investment of around 10million.

Hungary8217;s Gideon Richter Lt has formed a joint venture with Delhi- based pharma firm Thesis for manufacturing active pharmaceutical ingredients and intermediates at an investment of around 20million. French firm Galderma, which recently received approval for a 100 per cent subsidiary, is also planning to make India a manufacturing hub for products sold in South East Asian countries. Similarly, Ferring Pharmaceuticals, a 100 per cent subsidiary of Dutch major Ferring BV is setting up a manufacturing unit in Mumbai for producing specialty proteins and hormones.

Said Alok Gupta, Country head of Yes Bank8217;s Life Sciences and Biotechnology,8216;8216;Strong R038;D skills and low operational cost are attracting MNC pharma firms to India. Many more foreign drug firms are in the process of entering India8217;8217;.

Organisation of Pharmaceutical Producers of India8217;s DG Ajit V. Dangi said: 8216;8216;All these companies are research driven. So far there was no protection for their molecules in India. Under the patent regime their R038;D activities are protected8217;8217;.