The cost advantage and availability of quality technical talent will boost Indian pharma industry’s growth prospects in the regulated markets of US and EU, said Dilip Surana, Chairman & Managing Director, Micro Labs Limited.

In the wake of US President Donald Trump’s policies and the Brexit in the EU, speculations are rife that Indian pharma industry will be affected but the Micro Labs chief does not see these issues marring expansions.

“All said and done, the cost advantage is a big plus for India. Next is the availability of technical manpower and the Indian pharma industry is well developed. So it is obvious that products have to be manufactured from India. Now in the case of developments like President Trump and Brexit everybody wants to make products from within their country, Surana told Pharmabiz in an interaction.

Even when Indian companies are looking to market their products in the regulated markets, there is always an interest from overseas calling them to manufacture there. Local manufacturing is seen to be order of the day but it is not feasible for Indian pharma to manufacture everywhere, he pointed out.

Now to manufacture in the US, the costs are going to be high and this is going to be a challenge. “However, even if Micro Labs has not looked an investment in a Greenfield project yet in US, we are scouting for an existing business or plant to acquire. We have kept our options open to consider any well functioning facility or any other plant where we can add value. In Europe too we have been growing organically. Even here, we are looking at opportunities. Now unless it makes sense, we are not going to be aggressive on acquisitions anywhere, be it US, Europe or India,” he said.

On whether the developments in the US and Europe could drive Indian pharma to focus on the Asia Pacific region, Surana noted that these markets are smaller and therefore regulated regions in the developed world would enable companies to spur their revenue generation. Cost advantage, talent pool, Indian pharma, US, EU, Dilip Surana, Micro Labs Limited, pharma industry, manufacture, Europe, DPCO, Karnataka,

Moving on to the scene in India, he said "DPCO has made medication reasonably priced for patients and now companies have come to terms with it. Even though companies have had to compromise on cost, the volumes have gone up. Patients can access affordable drugs which makes companies happy”.

However, initially slash in drug costs was difficult for the industry but over time it is accepted because it has resulted in affordability for patients.

Another issue for Indian pharma to battle is the attrition rate which continues to be an issue more so in the case of skilled technical workforce. In the case of Micro Labs, we have been fortunate that the best manpower is with us for quite a long time, he said.

Going forward, infrastructure too will remain a challenge. Concepts like the Pharma Parks can give a head start to increase investments and if there is one in Karnataka, it will lead us to invest too, said the Micro Labs chief.