Medical Products Marketing in India

India's $12 billion pharmaceutical industry (formulations and bulk drugs) is faced with a changing landscape. Western drug companies are marketing their own generics leaving Indian firms to compete for market share. Indian firms are also experiencing the negative impacts of an appreciating currency. During the last several months, the rupee has appreciated 11 percent against U.S. dollar - an outcome that is eating into Indian drug firms' profitable export market. Notable Indian drug firms like Ranbaxy, have opted for acquisitions. Others have attempted to navigate through turbulent waters of basic drug development and are finding this business model a significant drain on revenues and well as a bumpy ride for new industry players. Historically, Indian drug companies have invested between 5 and 7 percent of their sales on basic drug research. For companies in the $1.6 billion range such as Ranbaxy and Dr. Reddy's Labs, this amounted to $112 million on basic drug research and development. When attempting to find novel molecules to synthesize into new chemical entities thus beginning the drug discovery process, drug companies burn through a great deal of capital and time -- a reality that Indian drug companies are just beginning to appreciate. Already, Dr. Reddy's Labs drug discovery spinoff, Perlecan Pharma, has been forced to scrap plans for three of its drug development initiatives as the supporting molecules failed to show therapeutic significance. The company is also facing challenges with its diabetes drug as clinical trials have failed to produce compelling findings. Other Indian drug companies that have also spun off their drug discovery efforts include Wockhardt, Nicholas Piramal and Glenmark Pharmaceuticals. What these companies may be realizing is that success rates are often very low and funding for such efforts are on a much grander scale than what Indian firms had been accustomed to investing. There is buzz within the local pharmaceutical sector that Indian firms may focus more heavily on novel drug delivery systems (NDDS). Creating new drug delivery platforms for existing drugs is expected to become a significant portion of company revenues during the 3-5 years. Indian firms such as Zydus Cadila, Lupin Ltd., and Wanbury are also directing their R&D efforts into NDDS and see this sub-sector as one with more rapid development potential due primarily to lower risk factors for failure.

The Golden Triangle Organization, Inc. produces comprehesive reports on the medical and pharmaceutical markets in Asia, including a briefing on Medical Products Marketing in India and a report on telemedicine in India.

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