Foreign pharma Cos seek Indian partners

Mumbai, Nov 8 (PTI) A recent Indian pharmaceuticals industry report says that many international pharma companies are interested to partner with Indian companies taking advantage of the growth of the domestic pharma industry. The global MNCs are looking for tie up with 'desi' firms for not only sourcing out products, but also to expand R&D, the PwC report titled "India Pharma Inc: Enhancing Value through Alliances & Partnerships" said. The domestic pharma market is expected to grow at a CAGR of 15 to 20 percent to reach a value anywhere between USD 50 and 74 billion by 2020. Many international pharmaceutical companies have acquired domestic companies to maximise their capabilities in serving the global markets in the recent past, it says. Pharma MNCs are looking for opportunities to co-develop drugs, buy or in-licence molecules from domestic companies. Such deals have helped the country shed the tag of a cheap manufacturing base and gain the title of genuine intellectual contributor, it says. Recently, Lupin signed a deal with Eli Lilly for anti-diabetic drugs. Lupin will market and distribute the entire range of Huminsulin brand of Eli Lilly in the country and in Nepal. Similarly, Novartis has signed a deal with USV to market Galvus (Vildagleptin) in the metros. USV will manage marketing activities in tier II and III towns in the next phase. The large size of domestic market, its product development skills and scientific talent are being increasingly sought by these MNCs to tackle the challenges of growth and innovation, says the report. "One of the main ways MNCs enter this market is acquisitions. However, given the scarcity of assets, valuations have increased over the last 12 to 18 months. MNCs are now exploring other ways of collaboration.... Such collaborations began with product sourcing and have now blossomed into other areas such as drug discovery, clinical development and marketing and sales," says the report. PTI