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Indian Pharma companies invests more in R&D than MNCs

Contrary to expectations, when patent regime came to end, many thought this will be the doom for Indian pharma which mainly focussed on reverse engineering. However, Indian pharma companies took the challenge and started investing more right from 2000. Even in recent years, share in R&D over total sales for Wochhardt, Dr. Reddys and Sun Pharma is hovering around 10% while that of MNC’s is a meagre 1%.  Most of the MNC’s now focus to outsource from India rather to invest in R&D here. This trend is emerging very clear as even with less stricter patent laws compared to Europe, more R&D investments were made in Asia compared to Europe.

Pharma companies look at emerging markets to drive revenue

Pharma companies affected by downturn and exposures to foreign currencies is experiencing a slide in sales from developed markets while seeing a significant growth in sales from emerging markets like Egypt, Russia, Brazil and African markets. For companies like Glenmark, Ranbaxy sales have been up to emerging markets from 20% to as much as 60%. Many pharma will follow suit and will deploy aggressive strategies to introduce several medicines into these markets. Russia, CIS like Ukraine, Kazakhstan, Uzbekistan and Eastern Europe will have high entry barriers with few competitors are ideal for Indian pharma companies to exploit


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