Financial Daily from THE HINDU group of publications
Friday, Dec 13, 2002
Financial Daily from THE HINDU group of publications Friday, Dec 13, 2002 |
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Industry & Economy
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Pharmaceuticals `Growth in pharma sector lower' Our Bureau
Mr D.S. Brar, CEO & MD, Ranbaxy Laboratories Ltd (left), with Dr K. Anji Reddy, Founder Chairman, Dr Reddy's group of companies, at a meeting in Mumbai on Thursday.
MUMBAI, Dec.12 THE Indian pharmaceutical industry may not grow at the same pace as it did in the past five years, said Mr B.S. Brar, Chief Executive Officer and Managing Director, Ranbaxy Laboratories. The industry is currently growing at 9.5 per cent as compared to the over 15 per cent growth earlier, he said. Speaking at the Indian Pharmaceutical Alliance (IPA) meeting here , Mr Brar said that intense competition, genericisation of most of the new products and the emerging `generic generic' or unbranded generic regional market has had a considerable impact. "The way the industry has dramatically grown in the past few years, it will stop by the year 2005. The introduction of Intellectual Property Rights (IPR) will force Indian companies to invest in research and development and impact new product pipelines,'' he said. According to Mr Brar further consolidation is expected in the pharmaceutical industry. "One can expect more and more merger and acquisitions in brands as well as companies by 2005,'' he added. It will be more visible once the dynamics of the domestic industry is clearer post TRIPs, he said. On being queried about the R&D investments by the IPA members, Dr Anji Reddy, Chairman of Dr Reddy's Laboratories, said that currently, the 11 members of IPA have invested over Rs 300 crore in R&D and in the next five years, the figure would reach Rs 1,000 crore. On an average, companies would be spending about five to seven per cent of sales into R&D. "India could be an important centre for clinical research. But the ambiguity in the governments' policy, slow approval process and absence of IPR is a hurdle. However, multinationals such as Eily Lilly, Pfizer and Novartis are considering conducting clinical research in India which is a good sign,'' said Mr Brar.
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