The current global economic slow down will provide a huge opportunity for Indian generic companies. This is because the US and other developed countries are looking at bringing down healthcare spends, stated Kiran Mazumdar-Shaw, chairman and managing director, Biocon Limited.
Speaking on the sidelines of a function organised to announced the Q2 results, Shaw said right now the indication in the US election campaign by Democrat Barack Obama and US Republican presidential nominee John McCain is that the two are keen to bring down healthcare spends. One of the methods would be to look at tenders in drug purchase at a much lower price compared to the present price levels. In such a scenario, India has a big opportunity because generic drugs will become a large part of the healthcare spends.
In the next five years, generics will be a huge business for the pharma-biotech companies in the country. At the same time bio-similars are also becoming an important part of that strategy. "We are now seeing US FDA set to announce guidelines for bio-similars. Big pharma is also looking at bio-similars as a strategy," Shaw said.
Therefore guidelines for bio-similars will make a positive impact on the biotech sector. However, the situation will be more apparent after the US elections. Since the large pharma companies have a strategy in this direction, regulations in the development of bio-similars will definitely happen, pointed out Shaw.
The pipeline of large pharma companies is depleting and therefore expansion of product portfolio would only be through focus on bio-similar drugs. This would be the only way to sustain growth and profitability in the tough times. Another aspect would be to concentrate on innovation to build expertise.
Innovation is affordable in India and only the tough companies can capitalize on the situation to succeed. Biocon is a research-driven, global healthcare company with a strong matrix of capabilities along the biopharmaceutical value chain. "We offer novel therapies on a platform of affordable innovation. Our strategic licensing partnerships will rapidly provide us wider global access and greater market penetration," said Shaw.
"In spite of the current financial crisis which is affecting the Indian industry, Biocon is comfortably placed with cash reserves to the tune of Rs 355 crore. We will wait and watch to make any move for inorganic growth initiatives," she said.
Biocon, which has presence in 75 global markets, has plans to increase its presence in Middle East, South East Asia, Far East, SAARC nations and North African region.