Mylan looking to entrench in India in four years

The India opportunity is beckoning multinational pharma companies of all hues.

US-based generic drugmaker Mylan Inc is the latest in the long list of firms including Abbott, Sanofi, Merck and Pfizer to formulate strong India plans.

The $5.5 billion firm, which was one of the first MNCs to acquire an Indian firm, is now looking at India as a key hub for growth.
Robert J Coury, chairman and CEO, Mylan, said the company will continue to look for strategic collaboration in India as it intends to be a major player here.

The firm is also looking at bringing products from its global portfolio of 900 products from therapeutic segments such as anti-retrovirals, cancer, pain, cardiovascular systems to India.
“Over the next 6-12 months we will come out with our complete launch plan. The anti-retroviral opportunity will be very big for us,” Coury said.   

He said during the Matrix buyout there were concerns over job losses but its employee headcount has grown from 3,000 then, to over 8,000 at present.

“Of our global employee base of 17,000, we have 8,000 in India. We have also invested $200 million in the last few years to expand facilities.”

Mylan bought out Hyderabad-based Matrix Labs in 2006 for $736 million.

“I see people coming to India and taking its value and going out. But that is not what I want to do. We will continue to invest here,” said Coury.
To establish itself better, Mylan has re-branded its India subsidiary Matrix to Mylan.

This re-branding is aimed at changing perception among various stakeholders including employees, shareholders, etc, said Nitin Bidikar, associate director, KPMG.

Heather Bresch, president, Mylan, said changing Matrix’s name to Mylan represents the next natural step for the business in India and will provide the ability to speak with a unified voice.
Coury said the next three to four years is the time to establish itself in India, while adding that the firm will continue to grow organically, though consolidation in the India market will be inevitable.

Industry expert say that though acquisition of businesses, facilities, brands, etc for quick growth in the India market is a decision which quite a few MNCs have taken, it is not the ultimate goal for several players.

Sujay Shetty, associate director, PricewaterhouseCoopers, said the Abbott acquisition of Piramal Healthcare’s domestic formulations business has put pressure on MNCs to consolidate and grow quickly to remain in the race.

“If they are looking at warding off local competition, then acquisitions could probably be the way. But it is not a must to survive in India. MNCs can also actively look for marketing alliances, establishing joint ventures to grow,” said Bidikar.