Pharma industry leaders called for collective efforts to overcome present challenges faced by the industry and realize the true potential in the global scenario.

Participating in Confederation of Indian Industry's (CII) seventh International Pharmaceutical Conference - Pharma Summit 2009 with the theme 'India Pharma Inc - Overcoming Challenges to Maximize Potential', they stressed on creating a conducive ecosystem and addressing the problems such as the need for incremental and breakthrough innovation, need for skilled manpower and change in mindsets. They identified branded generics as a potential area for the Indian pharma sector to focus on and cost effectiveness, and trained manpower as the inherent strengths of the sector. Calling on the sector to build on its advantages, the panel also asked the industry to cultivate an innovative mindset and increase productivity.

The panel concluded that human productivity, capital productivity and research productivity are areas that need immediate attention. However, the panel also expressed strong faith in the Indian pharma sector and said that the issues apart, the sector has the potential and the wherewithal to take on giant MNCs and the global pharmaceutical sector.

In keeping with the theme, the day's session was inaugurated with the release of the latest CII - KPMG report on the Indian pharma industry that outlines the various challenges faced by the sector today while drawing attention to the inherent strengths and potential of the sector.

The summit witnessed presence of industry bigwigs and thought leaders, who all gathered in order to take stock of the roadblocks facing the sector and ways and means to solve them. Primary problems faced by the Indian pharma sector today are issues of the 'intangibles' - namely lack of skilled manpower, lack of consistency and quality, lack of clarity on IPR and patenting, regulatory failures and a highly fragmented sector. Addressing these issues comprehensively will help the sector leapfrog into the global pharmaceutical market and overtake its closest competitor - China.

"These challenges are little hurdles, no doubt. But largely, they are a demonstration of the Indian pharma sector's potential and a reflection of its success. Over the next 10 years or so, we should work closely on addressing these issues, increasing R&D spends and patent filings and work towards consolidating the industry. This will help Indian firms leverage their strengths in the global market", said Naushad Forbes, chairman - CII Western Region and Director - Forbes Marshall Pvt Ltd.

Calling on the regulatory authorities and the government to exercise effectiveness, Jai Hiremath, chairman - CII Pharma Summit 2009 and vice chairman and managing director - Hikal Ltd, said "Over the years, India has emerged as the hub for contract research and manufacturing services. There has also been substantial improvement in technology and R&D spends. However, the sector now needs to collectively address pressing issues in order to maintain momentum. The government needs to ensure adequate clarity on IPR and data protection and issues such as 'Evergreening' which are frivolous should not be encouraged by regulatory authorities."

India is ranked as the world's 4th largest pharmaceutical market in terms of volume and the 13th largest in terms of value. But despite its success, the Indian pharma industry accounts only for three per cent of the Contract Research and Manufacturing Services (CRAMS) market. This indicates that the country has great potential to become a global market leader. However, it also signals certain issues and roadblocks which Indian companies are facing that deter them from gaining significant market share and realizing their true potential.