Bal Pharma, the medium-sized pharma company in Karnataka is firming up its plans to enter yet another South American country Chile with its range of Active Pharmaceutical Ingredients (APIs). The company is already present in Brazil, Mexico, Argentina and Venezuela in South America.
Chile is the next destination that we are eyeing because of the promising opportunities. There is a captive demand for APIs because of the presence of formulation units, Archana Dubey Mitra, associate vice president, API & exports, Bal Pharma Limited told Pharmabiz.
The APIs supplied to South American markets include ebastine, gliclazide and ameloride and benzydamine. In the last few years, the demand for bulk drugs related to lifestyle disorders are on the rise. We have also noticed that our supply of the anti diabetic API glicalazide has increased, she added.
In Chile, the healthcare spending as a percentage of GDP is around at six per cent. According to the Confederation of Indian Industry (CII) report, Chile's liberal foreign investment policy, which accorded equal status to local and foreign investors, free access with minimum intervention by the Chilean Government are the key factors that make region the destination of the future.
South American markets are showing an increased demand for drugs from India. There is already presence of leading Indian players like Strides Arcolab, Dr Reddy's Bal Pharma, Elder Pharma, Glenmark, Torrent, Flamingo Pharmaceuticals, Lifeline Industries Limited. Brazil is the second largest pharmaceutical market in South America. Despite difficulties like high pricing and intellectual property, Indian companies have gained a foothold in the region, said Mitra.
The biggest challenge for companies present in the region is the credit period of 120-180 days. The government of India needs to extend the line of credit to support the companies which are exporting in the region, stated Mitra.
According to available estimates from the industry sources, the global market API sales is estimated to clock revenues to the tune of $4.8 billion by 2010.