Higher quality standards and cost-competitiveness are driving global pharmaceutical giants to outsource form from India for their API and generic drugs requirements. India is gradually emerging as the outsourcing hub, especially for APIs, show reports.

Dishman Pharma, Shasun Chemicals, Suven Pharma, Innovasynth Technologies, Hikal, Matrix Labs, Divis Labs, Orchid Pharmaceuticals, Strides Arcolabs, and Jubilant Organosys are actively engaged in making quality bulk drugs and APIs for MNCs like GSK, Bayer, Merck & Co, Merck KGaA, Pfizer, Aventis, Solvay Labs and Novartis. Besides, these companies are providing contract research and synthesis services to their clients.

The trend is that major MNCs especially from US have started looking towards Indian manufacturers for key bulk drugs and intermediates. The quality of Indian products, their cost competitiveness, plants complied to FDA standards and above all the well anticipated, yet to be implemented product patent regime are the key factors responsible for this growing trend, says Dr. J.R. Vyas, chairman and managing director, Dishman Pharmaceuticals and Chemicals Ltd. Dishman serves eight foreign clients out of which about four are pharma MNCs. The company supplies eprosartan mesylate, a key API in the area of cardiovascular products.

Teva, Alpharma, Sandoz, Merck Generics, Ivax, Apotex, Bexel, Hexal, Stada, and Par Pharma are a few of the transnational generic companies. Which Indian companies have been serving. Some of the key bulk drugs and intermediates sourced by foreign clients from India include gabapentin, pantaprazole, ondansetron, omeprazole, lanzaprazole, loratidine, glibipizide, cipro, citalopram, gatifloxacin, norfloxacin, olanzapine, alprazolam, flucanozole, terbinafine, and others.

Currently, there is boom in generic market worldover. This trend is expected to continue growing rapidly in the coming years. Seeing the opportunity, many Indian traditional pharma companies are taking special interest in bulk drugs business. Companies like Cipla, Nicholas Piramal, Ranbaxy, Dr. Reddy's Labs, Glenmark Labs, Themis Medicare, Unichem Labs and Sun Pharmaceuticals have set up dedicated facilities for making bulk drugs for exports.

Indian firms are also helping their foreign clients in filing for overseas marketing approvals like DMF/ ANDA, and marketing of these products.