Does Big Pharma's move to diversify into generics--especially in emerging markets such as India--have local competitors shaking in their boots? Well, maybe local media is shaking on their behalf. Today, India's Business Standard newspaper rounds up the many recent Big Pharma moves into the subcontinent, asking whether the multinational drugmakers threaten the growth and survival of home-grown companies.
Pfizer has linked up with Aurobindo Pharma, based in Hyderabad, India, eyeing penetration of the generics markets in the U.S., Europe, and yes, India. Sanofi-Aventis and GlaxoSmithKline have both been linked to a possible buyout of India's Piramal Healthcare. And of course, India's largest drugmaker, Ranbaxy Laboratories was bought out by Japan's Daiichi Sankyo last year. Germany's Merck KGaA also wants to buy an Indian pharma as part of its strategy for big growth there.
"Multinational drugmakers realize that future growth prospects are in emerging markets, where generics dominate," D.G. Shah of the Indian Pharmaceutical Alliance said. "While developed markets like the US and Europe are stagnating with 1-2 percent growth, emerging markets are growing at 12-14 percent annually." Naturally, Big Pharma will want to move in. Can you blame them? Besides, India's drug market may prove to be big enough for everybody.
- read the Standard's piece