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India is inevitable for us: MNCs
Prabodh Chandrasekhar | Thursday, December 2, 2004, 08:00 Hrs  [IST]

Major MNC pharma companies are buoyant over investing in India. In thelast six months or so, MNCs who have shown interest to invest in the country include companies like Merck & Co, BMS, Astra Zeneca, Chiron Corporation, Daiichi, Eisai, Teva, Ivax, Pliva, and Apotex.

The investments are being made in the areas like contract research, clinical research, discovery research, marketing, and manufacturing.

The companies are eyeing the cost competitiveness of the Indian market without compromising the quality aspect. There is also the important aspect of India implementing WTO regime post 2005. India, with its varied genetic pool and naïve population is once again a favorite destination for clinical research.

Steven M. Hutchins, director, Outsourcing, Merck & Co., New Jersey told Pharmabiz, "We are looking at the option of opening our office in India post 2005. For the time being, we view India as a cost effective yet qualitative destination for doing research to support our drug discovery channel." Merck has awarded discovery research contracts to Indian CROs like Chembiotek Research International, GVK Biosiences, Syngene, and Sanmar Specialty Chemicals.

Dr. Osamu Sato, manager, Research Administration Group R&D Operations Dept, Daiichi, Pharma Co, Japan, said, "Daiichi will initially set up a marketing office in the country for marketing the company's innovative pharmaceutical products in India. We are also looking for partners in contract research in India. In future, when the IPR regime is fully implemented, we may look India as a manufacturing hub for our key anti-cancer and anti-infective products," said

AstraZeneca International will be investing $ 35 million during the next five years in its Bangalore-based India subsidiary AstraZeneca India, according to senior company officials.

The investment will be mainly utilised in its tuberculosis research programme at AstraZeneca Research Centre (AZRC) in Bangalore and for the purpose of conducting clinical trials in India for the new molecules discovered at the company's research centres in US and Europe.

"Over the next few years, we have plans to conduct clinical trials in India for eight new molecules in the areas such as oncology, respiratory diseases, diabetes, and neuropsychiatry," said Lars Walan, vice president, Global Drug Development, Emerging Markets, AstraZeneca Intl.

International vaccine major Chiron Corporation will commence full-fledged marketing operations in the country beginning January 2005. Confirming the company's plans, Masood Alam, head of Commercial Operations, Indian sub-continent, Chiron Vaccines, said, "Chiron will have full-scale marketing operations of its own shortly. Considering India's size as a valuable market, our presence in this country is inevitable." Chiron is having plans to introduce new vaccines in the country in future."

Besides these pharma majors, international CROs have also initiated the process of setting up their bases in the country. Kendle, a US-based CRO has already set up its office and is in the process of commencing operations in the country. Other international CROs like Icon, Pharmolam, Pharmanet, PPD Pharma Company, and Omnicare are looking at expansion in India.

According to estimates, manufacturing in India could be done at one-fifth of the US, and one-third of European costs. R&D could be done in India at one-third of the US & European costs, whereas clinical research could be done at one-fifth of western costs.

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