Srinivas
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Indian generics grab a strategic foothold in Japan
The recent announcement that Indian generic manufacturer Suven Life Sciences was granted four pharmaceutical patents in China, Mexico and New Zealand, adding to the five patents it holds in Japan, once again shows that Indian generics have steadily been building a presence in other countries, far away from the headline-grabbing reports about them at home. It seems that although they are reluctant to invest profits into R&D in India, when it comes to entering lucrative markets abroad, there is plenty of creativity and capital available.
One of these is Japan. The worlds second largest pharmaceutical market, according to a Thomson Reuters report, the country boasts annual sales of $64.5 billion, of which only 6.6% are generated from generics, so creating opportunities for Indian manufacturers. The last year saw seven high profile drug patents expire, opening up the Japanese market to generics producers and active pharmaceutical ingredients suppliers (APIs).
Interestingly, it was with APIs that Indian generics initially found their foothold, selling base ingredients to Japanese generic companies, instead of their own products. Ranbaxy, Suven Life Sciences and Dishman Pharmaceuticals have already established supply lines into the country; with Dishman reporting that it already provides 11 Japanese companies with APIs. In fact, Indias drug exports to Japan increased from $79.63 million in 2010-11 to $151.69 million in 2011-12, representing year on year growth of approximately 90%, according to figures released by the Centre for Monitoring Indian Economy.
The closed nature of the Japanese market and the demand for top quality from the Japanese consumer has meant that Indian generics have had to be creative in how they operate in Japan. Besides acting as API suppliers, they have also sought out alliances with Japanese pharmaceuticals; for example the last few years have seen Dr. Reddys tie-up with Fujifilm, Lupins acquisition of Kyowa Pharmaceutical Industry and Ciplas recent announcement of a partnership with an as-yet-unnamed Japanese pharmaceutical firm. Affiliating with a Japanese company gives Indian generic manufacturers valuable insights into the local pharmaceutical marketplace, as well as established supply chains.
As the Japanese example shows, Indian generics are clearly willing to embrace a variety of strategies in order to tap profitable Asian markets, whether that is by acting as an API supplier, or through joint ventures, outright acquisitions and/or filing for patents. If they have the foresight to identify how to maximise their profits in a market such as Japan, it would be interesting to see what heights they could reach if they invested those same strategies and profits into innovation in India.
Indian generics grab a strategic foothold in Japan - Blog - IAM Magazine
The recent announcement that Indian generic manufacturer Suven Life Sciences was granted four pharmaceutical patents in China, Mexico and New Zealand, adding to the five patents it holds in Japan, once again shows that Indian generics have steadily been building a presence in other countries, far away from the headline-grabbing reports about them at home. It seems that although they are reluctant to invest profits into R&D in India, when it comes to entering lucrative markets abroad, there is plenty of creativity and capital available.
One of these is Japan. The worlds second largest pharmaceutical market, according to a Thomson Reuters report, the country boasts annual sales of $64.5 billion, of which only 6.6% are generated from generics, so creating opportunities for Indian manufacturers. The last year saw seven high profile drug patents expire, opening up the Japanese market to generics producers and active pharmaceutical ingredients suppliers (APIs).
Interestingly, it was with APIs that Indian generics initially found their foothold, selling base ingredients to Japanese generic companies, instead of their own products. Ranbaxy, Suven Life Sciences and Dishman Pharmaceuticals have already established supply lines into the country; with Dishman reporting that it already provides 11 Japanese companies with APIs. In fact, Indias drug exports to Japan increased from $79.63 million in 2010-11 to $151.69 million in 2011-12, representing year on year growth of approximately 90%, according to figures released by the Centre for Monitoring Indian Economy.
The closed nature of the Japanese market and the demand for top quality from the Japanese consumer has meant that Indian generics have had to be creative in how they operate in Japan. Besides acting as API suppliers, they have also sought out alliances with Japanese pharmaceuticals; for example the last few years have seen Dr. Reddys tie-up with Fujifilm, Lupins acquisition of Kyowa Pharmaceutical Industry and Ciplas recent announcement of a partnership with an as-yet-unnamed Japanese pharmaceutical firm. Affiliating with a Japanese company gives Indian generic manufacturers valuable insights into the local pharmaceutical marketplace, as well as established supply chains.
As the Japanese example shows, Indian generics are clearly willing to embrace a variety of strategies in order to tap profitable Asian markets, whether that is by acting as an API supplier, or through joint ventures, outright acquisitions and/or filing for patents. If they have the foresight to identify how to maximise their profits in a market such as Japan, it would be interesting to see what heights they could reach if they invested those same strategies and profits into innovation in India.
Indian generics grab a strategic foothold in Japan - Blog - IAM Magazine
