Big Pharma Companies Join Outsourcing Queuen

OSCM GROUP 3

Name of the Publication : Business Standard (Delhi Edition) Date of Issue

: 16 August 2009

Page No.

: 2

Name of the Author

: PB Jayakumar

Email ID of Author

: Not mentioned

BIG PHARMA COMPANIES JOIN OUTSOURCING QUEUE Reasons why India is emerging as an inviting destination for outsourcing drug production •

Over 80% of the 38 big and medium -sized pharma companies across the world rated INDIA higher than CHINA ,EASTERN EUROPE,SINGAPORE and IRELAND.

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Has close to 100 manufacturing facilities approved by the US Food and Drug Administration(FDA),the largest after the US.

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Offers a significant cost quality proposition in end to end research and development ,with potential savings of over 60% as compared to the US, coupled with a strong supply of skilled manpower and capital efficiency.

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Drug production outsourcing industry to grow over 43% annually, thrice the global growth rate.

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Diminishing number of new drugs ,as against existing drugs going off-patent, high research and development costs, and pressure to reduce healthcare costs are forcing Big Pharma to rope in strategic partners to contain manufacturing and drug development expenses.

Pfizer entered into a partnership with a relatively unknown Ahmedabad based injectible drug manufacturing specialist, Chris Lifesciences, to access products that are off-patent and have lost exclusively in the US, Canada, Australia, New Zealand and Europe. In June the second largest drug maker Glaxo Smithline, entered into a similar alliance with Dr Reddy’s to access the current portfolio and future pipelines of more than 100 branded pharmaceuticals in the cardio vascular area ,diabetes,oncology,gastroenterology and pain management.Products wii be manufactured by Dr Reddy’s and licenced and supplied by GSK in various countries in Africa, West Asia, Asia Pcific and Latin America. GROUP MEMBERS

Sujata Rohilla

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