DDN Pharmaceutical Logistics, the US-based logistics services provider for life sciences industry, is testing the waters in the Indian pharmaceutical market to float its operations in the country.

DDN, which currently has a clientele of 90 life science companies, is conducting a preliminary market study in the country to check the feasibility of setting up its operations for the domestic pharma companies. Plan is to initiate third party logistics model by taking the responsibility of warehousing, financial, contract management, chargeback reporting and logistics for the companies in the Indian market, informed Ross Bjella, president, DDN.

"We are evaluating the opportunities for expansion of our operations to India. The plan is in the initial stage and we may not be able to comment more on this. Based on the studies, we will decide whether we should set up our own warehouse or to enter into partnership with some companies," said Bjella.

The preliminary study will be completed by mid-summer and a further study on feasibility will be conducted to ensure the market opportunity. The Mumbai-based Prescription Pharma Support is conducting the preliminary study even as the service provider for second phase study has not been finalised by DDN.

Once the operations in India are established, the company will focus on providing logistics services to the companies in domestic market. DDN is planning to introduce financial services in India along with the logistics services, where the company will support the clientele in managing the logistics bills by establishing relationship with the buyers (wholesalers and retailers or hospitals). Plans are to test whether DDN can deliver value based, quality services for the industry in limited cost.

At present, almost 25 per cent of DDN's client list consists of Indian companies, with direct services to 15 Indian companies and indirect services to 10 other pharma companies in the country. Currently, the services are offered to the companies which has their export business in US and Europe even as the Indian operations will focus on the domestic logistics and financial services.

DDN, which provides business process outsourcing for the life science industry, has an annual revenue approaching USD 50 million according to company announcement in the end of 2008.