Global pharma cos to up focus on branded generics biz in India

Large innovator companies in the global pharmaceutical industry have been reporting sluggish growth over the last few years, being held back by several factors, including implementation of cost containment measures in developed countries, lack of strong product pipelines, and expiry of patents on existing products, an ICRA report on the pharma sector said here today.

Emerging markets, including India, in contrast, represent an exciting opportunity given its strong growth potential, it said.
Pharma MNCs are currently launching branded generics in the Indian market via product localisation, a strategy that involves local branding, sourcing and pricing. This strategy helps them launch products at competitive prices, thereby addressing affordability issues, the report said.

The scaling-up of field force by pharma MNCs in India to increase geographic penetration and the launch of new products in the Indian market has led to an increase in personnel costs for them. This, along with the increase in promotional and marketing expenditure on new launches, has brought pressures on operating margins, although they are still largely within the range of comfort, it added.

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