Friday, October 03, 2008

Indian Pharmaceutical Offshoring, geared up to join global market

The Indian Pharmaceutical Offshoring (IPO) is expected to become a US$2.5bn opportunity by 2012 says a research by Zinnov Management Consulting. According to the study, the Indian pharma sector is growing robustly and is expected to shift from domestic to exports by 2010.

A transition is also expected in the growth of pharmaceutical markets from the top seven established pharmaceutical markets to emerging markets like India, China, Brazil, Mexico, South Korea, and Russia – which will grow at 12-13 % in 2008, and become a USD 85-90 billion market, finds the study.

Pari Natarajan, CEO, Zinnov Management Consulting, says, “Influx of outsourced work from global pharmaceutical companies has given the necessary impetus for the creation of pharma Special Economic Zones (SEZ), which would be one of the key drivers of outsourced pharmaceutical services growth in the coming future”. Further he added, “Indian pharmaceutical companies need to penetrate further in generics market in regulated countries and also increase their investment in R&D to move to gain expertise in higher value chain processes. Today, pharmaceutical is one of the most happening industries globally, and India has the potential to become one of the key global pharmaceutical players and also become the backbone of offshored services in Pharmaceuticals”.

The Government has provided tax incentives to the pharmaceutical industry and has taken necessary steps to enact tough laws on data security and IP related issues to mitigate certain offshoring challenge which has given India the potential to join the key global pharmaceutical players and also become the backbone of off-shored services in Pharmaceuticals.