The high success rate of acquisitions by Indian pharma industry and the growing prominence for an 'Indian angle' in developed countries like the US and Europe will throw up more opportunities for domestic players abroad, feels Habil Khorakiwala, chairman, Wockhardt Limited.

Delivering the K C Chatterjee Memorial Lecture in the first day of IPC 2007, he said that the Indian companies have recorded a success rate of nearly 80 to 90 per cent in foreign acquisitions, while more than 60 per cent acquisitions made globally by other countries have failed to rake in high value. The Indian companies are well-placed in the `acquisition game' and most of the top companies have already added at least four or five overseas acquisitions to their profile.

The creative value added by the Indian companies in each acquisition and the synergy of strengths in the buys have became a shot in the arm for the domestic pharmaceutical players to grow higher. The companies should focus more on creating synergy in acquisitions to grow globally, he added. The quality of management and right strategy of using supply chains are very important for the success of each acquisition.

The strategies include proper placement of manpower to strengthen the new subsidiary on its growth track. For example, more than 90 per cent of its employees in US and European subsidiaries are the natives and a very few number of Indians are working in these facilities. However, the company has employed Indians in some areas where it would ensure a strategic gain.

Moreover, an Indian angle is getting prominence in countries like US and Europe and more Indian products are getting larger share in overseas markets, more than anytime in the past. ``This is a positive trend which is growing to increase without any adversities. According to the recent McKinsey report on Indian pharma industry, the domestic industry is expected to grow towards US $15 billion and the acquisitions made by the companies will form a significant part of this,'' he said.

However, one of the major issues faced by the research-driven companies at present is the procedural delay in drug approvals in India when compared to the regulatory systems in the Western countries. There should be some changes in the regulatory aspects in India, at least in the drug discovery sector, to support the growing industry, added Khorakiwala. Dr Atul Nasa, president, Indian Pharmacy Graduates Association (IPGA) chaired the session.