Brian Tempest

Former Chief Mentor & Executive Director, Ranbaxy

Indian Pharma vis-à-vis global consolidation.

Consolidation will continue within & outside India. There is a real appetite inside India for further partnerships, alliances and M&As.

Reasons for high fragmentation.

The pharmaceuticals sector in India has only come to the centre stage in the global pharma sector within the last 10 years. Consequently, the current picture of the industry reflects the history of 2,000 healthcare operations in India.

Has the long due consolidation finally arrived?

Since January 1, 2005, I have been forecasting a change in the Indian marketplace as the new IP laws come into force and the new product flow dries up for the traditional Indian marketplace. It has taken a little longer than what was initially expected, but will happen in the year 2009. Consequently, now promoters of medium size pharmaceutical companies can see the future and are amending their strategies accordingly. Some of these strategies include alliances, partnerships and mergers.

What benefits will consolidation bring in for the Indian pharmaceuticals industry?

Indian companies will become global giants themselves or part of other global giants. These alliances will also lead to a rise in the discovery skill base in India, which will synergise with the inherent strength of chemistry in the country.

Will the consolidation be limited to generics or will we see the same happening in R&D space as well?

We will see consolidation happening all across the value chain including the generics space, the CRAMS space and the discovery space.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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