The increasing number of consolidations and in-licensing agreements between Multinational Corporations (MNC) and Indian companies highlights the growing significance of the country’s pharmaceutical market, states business intelligence firm GBI Research.
The company’s latest report* points to the introduction of product patents in 2005, 100% Foreign Direct Investment (FDI) in pharmaceuticals in 2006 and the strong growth prospects for generics and biosimilars in the country, as having been strong incentives to foreign investments.
Mergers and Acquisitions between 2007 and 2012, added up to a value of around US$1 billion and approximately 400 partnerships were formed over the 2007-2012 period – the majority of which were valued at more than US$100m. GBI Research also expects India’s pharmaceutical industry to grow as a result of rising income levels leading to higher treatment expectations.
However, there are still some significant obstacles in providing a high level of healthcare across the country. For example, the country’s healthcare workforce is very small compared to its large population. Additionally drug counterfeiting has developed as a major concern within the sector, the report adds.
* Indian Pharmaceutical Market Outlook - Enhanced Purchasing Power, Rural Market Penetration and Expanded Access to Healthcare Attracting Big Pharma Investment.
