Ranjit Shahani,
Vice Chairman & MD, Novartis India Limited
Reasons for high fragmentation.
The Indian pharmaceutical industry has greatly
benefited from the process patent law that was in place prior to 2005 and has developed a significant competence and talent pool in the area of reverse engineering. This led to significant growth of the generics drug industry, particularly in the small scale sector. Now with the product patent law in place and increasing focus on research, many companies will feel the need for consolidation. R&D is a high risk activity requiring large scale funding, a strong talent pool and organisational skills to bring a drug to the market. All these factors are likely to prompt a consolidation phase in the industry.
Has the long due consolidation finally arrived?
Consolidation will happen in the longer term – by 2010-2015. We can already see some consolidation happening in this space, with many organisations wanting to scale up their operations, which will enable them to meet increasingly diverse challenges. However, current high valuation expectations and emotional attachments due to them being largely family-run organisations are the key reasons why you do not see consolidation in the short term. But, it will definitely bring in economies of scale as well as increase opportunities in the areas of contract manufacturing, clinical trials and research work.
Vice Chairman & MD, Novartis India Limited
Reasons for high fragmentation.
The Indian pharmaceutical industry has greatly
benefited from the process patent law that was in place prior to 2005 and has developed a significant competence and talent pool in the area of reverse engineering. This led to significant growth of the generics drug industry, particularly in the small scale sector. Now with the product patent law in place and increasing focus on research, many companies will feel the need for consolidation. R&D is a high risk activity requiring large scale funding, a strong talent pool and organisational skills to bring a drug to the market. All these factors are likely to prompt a consolidation phase in the industry.Has the long due consolidation finally arrived?
Consolidation will happen in the longer term – by 2010-2015. We can already see some consolidation happening in this space, with many organisations wanting to scale up their operations, which will enable them to meet increasingly diverse challenges. However, current high valuation expectations and emotional attachments due to them being largely family-run organisations are the key reasons why you do not see consolidation in the short term. But, it will definitely bring in economies of scale as well as increase opportunities in the areas of contract manufacturing, clinical trials and research work.
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4 comments:
i think IIPM makes business education truly global
iipm's international placements are very high
iipm placements rockz
the sunday indian magazine is great initiative by prof. arindam chaudhuri
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