The potential of Indian pharmaceutical industry to become a leading global player is more than that of it Chinese counterpart, feels Brian Tempest, chief mentor and executive vice-chairman, Ranbaxy Laboratories.
MUMBAI: The potential of Indian pharmaceutical industry to become a leading global player is more than that of it Chinese counterpart, feels Brian Tempest, chief mentor and executive vice-chairman, Ranbaxy Laboratories.
Speaking at a pharma summit organised by the Confederation of Indian Industry on Thursday, Tempest said India had several advantages over China.
“China’s one child policy is going to impact their productivity. Some provinces are facing severe skilled manpower shortage. It would get old before it becomes rich. In India, the population would remain young for a long time. Fifty per cent of the population is under 25 years of age and 65% is under 35%,” said Tempest. By 2030, India’s working population is expected to exceed that of China, he added.
India’s economic growth is creating wealth, which is expected to add to the overall momentum of the industry. Among the world’s 800 odd billionaires, about half of whom are in the US, India and UK account for roughly the same number of billionaires at 23 and 24 respectively, against just eight from China, said Tempest.
“We have many advantages. Chief amongst them is R&D (research and development) and education would come second. We have the fourth-largest reservoir of scientific manpower,” said Tempest. Availability skilled manpower, laws that recognise intellectual property rights and global Indian players having global alliances are some of the reasons which have made India amongst the top R&D destinations globally.
India also has a large number of US Food and Drug Administration approved plants, and accounts for over 40% of US drug master filings and 25% of abbreviated new drug applications. “No generic Chinese company has yet filed a US FDA ANDA,” he pointed out.
Tempest said India has the potential to improve, which can be achieved by progressive government policies, better infrastructure and revitalising agriculture. It can also take advantage of medical tourism, and higher foreign direct investment.
According to him, potential downside threats exists from issues like infrastructure constraints, oil prices, and pollution.
Advantage beyond costs
Indian pharma companies need to go beyond the low-cost proposition in order to be competitive at the global level, Dr M Venkateswarlu, the newly-appointed drugs controller general, said at the CII Pharma Summit 2006 on 'India Pharma Inc – Competing Globally' on Thursday.
“We must stop competing the way we are. There is a need to identify other areas, compete on quality, systems and superiority in order to convert ‘Advantage India’ into tangible benefits,” said Venkateswarlu.
He stressed on the need for regulatory authorities and industry stakeholders to interact and interface on a common platform to debate, discuss and evolve a consensus on pending issues like clinical trials.
Making research more attractive was critical for growth, he said, adding, Indian companies also need to go beyond the cardiac and diabetes segments and address lifestyle and old age diseases, which had a huge growth potential.
Ajay Piramal, chairman of CII National Committee on Drugs & Pharmaceuticals, CII Pharma Summit 2006 and Nicholas Piramal India Ltd, said the focus of the summit was on setting a vision for India to move up the value chain through R&D analysis.
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