North Indian pharma: Focusing on R&D and tie-ups to meet challenging conditions

The North India based listed pharmaceutical companies have established strong presence in the domestic market, highly regulated markets and emerging markets during the last couple of years with several US FDA approved facilities, high-tech R&D laboratories, focus on new lifestyle drugs and partnership with international giants. 

Despite economic slowdown in international market, especially in US and Europe, these companies are going ahead aggressively in filing new products in US and Europe. The players are investing huge amounts in expansion of cGMP facilities and new technologies. However, the challenging situation with stiff generic competition, US actions against Ranbaxy and volatile foreign exchange rates are impacting overall working.

The better infrastructural facilities, government support, skilled workforce and growth oriented industrial atmosphere in the North India has offered necessary boost to pharmaceutical segment. The rising custom research and manufacturing services (CRAMS), drug discovery and development services and clinical trials will offer significant boost to business in the coming years. The Indian pharmaceutical market registered better annual growth during 2008-09 as compared to regulated markets and North based pharma companies contributed to this growth. The chronic therapy segment recorded a growth of 13.1 per cent and contributed 28.3 per cent to the total market, while acute therapy segment grew at a rate of 8.6 per cent. 

The North Indian pharma segment is dominated by important listed companies, with net sales of over Rs 100 crore during 2008-09, like Ranbaxy Laboratories, Jubilant Organosys, Surya Pharma, Nectar Lifesciences, Panacea Biotec, two companies from Ind-Swift Group, Fresenius Kabi Oncology (formerly known as Dabur Pharma), Venus Remedies and Jagsonpal Pharma, are spreading their operations in new markets, undertaking R&D activities and launching new products.