Drug makers seek sops to crack off-patent opportunity

The much hyped off-patent opportunity worth $30-40 billion is likely to remain a tough nut to crack for the Indian pharmaceutical industry considering the roadblocks in the form of insufficient infrastructure and lack of proper policy framework at the government level.

According to industry officials, there are several countries that have already decked up their facilities to tap the opportunity that would become available in the next four to five years while India is yet on the learning curve.

The pharma sector estimates that the off-patent market would be worth $40 billion as various block buster drugs are likely to come out of the patent regime in the next four to five years across the globe.

“Countries like China and Brazil are ready with their plans both in terms of infrastructure and the policy framework. Hence, competition is very high and it’s going to be an uphill task for us. But if we have proper infrastructure in place, work in unison and  get proper support from the government  I don’t think we will lag behind,” Daara Patel, secretary general of Indian Drug Manufacturers’ Association (IDMA), said.

The Indian pharma sector scores over all other competition in terms of quality of the produce, he said.

Patel felt the Chinese bulk drug material is not as good as the Indian produce. “But most countries get tempted by the price tag offered by the Chinese manufacturers,” he said.

Keeping in view the first-ever major opportunity in terms of generic market value in the years to come, the pharma companies too are keen on conducting simultaneous research & development (R&D) on multiple drugs, which would be possible only through the government intervention.

According to them, the entire bulk drug, or active pharmaceutical ingredients, research is happening in the laboratories owned and managed by the pharma companies.

The industry players are seeking more government support on setting up better infrastructure expeditiously to increase the R&D pace.

IDMA, in a report submitted to the Centre, has asked the government to allot land at cheaper price to the pharma sector like China does while seeking interest rates and transaction cost cuts.
IDMA is also of the view that the government should allow 100% FDI into the sector with certain riders.