Pharmabiz
 

How to make India a pharma power house?

Prof.S.BalasubramanianThursday, December 15, 2011, 08:00 Hrs  [IST]

India with its growing capabilities  has already shown the potentials that it can be a pharma power house of the world by 2020. Pharmaceutical field has achieved tremendous growth in the last few years, no doubt. But is it an all round growth? Is it going in the right direction? One needs to introspect.

Literally a power house is the generator of energy and the supplier of energy, thereby the backbone of all-round development. The requirement of a power house are:
A]    a fool proof and efficient generator
B]    uninterrupted supply of fuel for the generator
C]    an energetic and skilful operator and above all
D]    the atmosphere or environment to install and run the generator.

If we analyse these requirements one by one, our weakness or area to be strengthened can be identified and that will help in making India a pharma power house by 2020.A power house should be, a team considered to be the best of its class.

The generator
Similar to a generator for a power house, pharma industry is the backbone for this goal. By and large Indian pharmaceutical industry has already proved its merit in the global arena. It is the third largest producer of drugs and pharmaceutical of the world. It has the second large number of USFDA approved manufacturing facilities next to the US itself.  Indian drug’s quality and efficacy has been proved by exports to many countries.

What other proof  is  needed  to prove Indian  pharma industries worth when Indian drugs are being counterfeited by some other countries with  fake “Made in India” labels.

We are the largest producers of generic drugs. We have the highest number of contract manufacturing companies, both formulations and Active Pharmaceutical Ingredients. No doubt the generator of the power house- the pharma industry- is hale and healthy. Is it the same case with the fuel and operator of the generator? What about the atmosphere to run this generator?

The fuel
The fuel is the lifeline for any machine to run and the generator is not an exemption. What makes up the fuel to run the pharma industry? The order book, the demand for its product, the quality that created the demand and the competitive price that sustained that demand. Once we loose this edge to other competitors, the generator slows down and ultimately stops.

The demand for the product can be internal or external. External demand is met by exports. As long as our price and qualities are acceptable to importers of our drugs or services, there is no problem. But imagine a scenario, when our competitors like China outsmart our production capabilities and prices, the fuel [order/demand] starts drying up. How to prevent it? How to sustain the demand? The only answer is innovation in product, process and marketing. As long as we remain as a contract manufacturer, the need for innovation diminishes. Hence Indian pharma industry should come forward to maintain its growth momentum by research and development. Why Indian pharma majors are not able to invent new molecules?

Where is the weakness? It is not only the huge investment required; we need to identify other reasons as well. Only an inventor and innovator can be the leader.

This apart the internal demand for drugs should be increased by many folds. Still crores of rural Indians are not able to meet  their requirement of medicines. There is no rural health care service worth mentioning. Indian pharma industry cannot and should not shut it eyes to this reality.

What made Indian telecom Industry to penetrate so deep into the rural market? How did  mobile phone  reach the hands of not-so-rich rural Indians? “Affordability” –that is the mantra behind this success story. Pharma industry should try to reach rural population of India, and thereby ensure its fuel of demand for its long run. Medical tourism is another area where patients from abroad come to India for better and cost - effective treatment. Good quality medicines on par with those of developed countries, but at cheaper prices, can play a major role in the flow of patients into India for treatment. Thus only the internal demand is reliable, sustainable and durable. Let the power house supply energy to local needs first!

The operator
It is none other than the pharma technocrats who operate the generator—the industry. Only a skilled and efficient operator can run the industry without problems. There is no doubt the number of producers of these operators – the pharmacy colleges--has increased by many fold in the recent years. But can we say the same with the quality of outputs of these colleges? Self - financing concept has corrupted the entire system and pharma education, like any other education, is completely commercialized. It produces only quantity not quality, except for a very few institutions that concentrate on the quality.

Is the pharma industry not concerned with this development? Industry needs not only technical operators to run its factory; its requirement goes broader, into wholesaler, detailer to retailer. All these manpower requirements also should be considered by the industry. Technical manpower is our strength; don’t allow it to get weakened. Industry – institution collaboration should be increased as much as possible. Only a talented, devoted operator can ensure trouble free operation of the machine.  

The environment
Next important requirement to run a powerhouse is the atmosphere or environment. It is the duty of the government to ensure proper climate to establish and operate industries. The government should provide required infrastructure to conduct the show. The basic requirements like transport facilities, manpower, raw materials, electricity, water, drainage and even market for the product should be provided by both state and central governments. By and large these requirements are met by present government. The policies are pro-industry, no doubt. Though the needed  protection  is offered by the government, industry has to learn to self-sustain. The concessions cannot be for an indefinite period. Industry especially the pharma powerhouse should learn to face competition from around the world.

Even the domestic government policies may change due to political pressure from within and outside the country. As long as, the pro-industry environment is maintained by government, make use of it; at the same time be prepared to stand on your own leg. We cannot be sure whether  an  ‘Occupy Wall Street’ type movement will  come to India too.

Conclusion
Thus, if all these requirements viz.: generator, operator, fuel and environment are conducive to growth, Indian pharma industry will certainly be a power house by 2020. However ‘Vision 2020’ envisages an all around development of India. If one part of the human body alone grows, leaving other parts to starve, it cannot be considered as growth. It is called abscess or inflammation or some disease. Hence ensure growth to percolate to  related sectors as well. Only a balanced and orderly growth can maintain symmetry of  the body. Otherwise not only balance will be lost, but  the system itself will  collapse. To achieve the goals of ‘Vision 2020’, what we need first is a ‘Vision’ with a  scanner and far sighted eyes.  

The author is ex-President, Indian Pharmacy Graduates Association,
Madurai, Tamil Nadu

 
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