The Counterintuitive sounding claim was made this week in a report by the Indian Brand Equity Foundation (IBEF), which predicted that manufacturers in the country – both generic and innovative – will soon challenge their western counterparts for market share.
According to the authors a significant proportion of the income from Indian generic drug exports – around $13bn (€9.7bn) a year - is being spent on R&D and the development of new technologies.
To support this they cite the 3,000 plus drug master files (DMFs) Indian firms filed with the US Food and Drug Administration (FDA) as well as tech patents– like that held by Lincoln Pharma for its nasal drug delivery system (NDDS) – as evidence of innovation.
The authors also pointed to investments in manufacturing R&D made by Dr. Reddy’s, Lupin Labs, Sun Pharma, Ranbaxy and Cipla this year – which total over $500m – as further evidence of the trend.
Public Support
Rajeev Kher, additional secretary of the Department of Commerce, Ministry of Commerce and Industry – which set up IBEF - said: “The country’s success in generics manufacturing is helping to keep our industry at the forefront of innovation and over the next few years we are lending our support to the R&D effort across the country.”
This support is in the form of various public-private partnerships, tax breaks that offer a weighted deduction of 150% for any R&D expenditure incurred, and the establishment of 19 special economic zones.
Other initiatives designed to foster manufacturing innovation have also been introduced such as the ‘New Millennium Indian Technology Leadership Initiative,’ which was launched in 2009, and the “Drugs and Pharmaceuticals Research Programme,” rolled out in 2010.
Whether this support will translate into manufacturing innovations that help Indian pharmas win a larger share of the global market remains to be seen, but the strength and growth rate of the generics sector is a good sign according to Pharmexcil director, P V Appaji.
“Being a world leader in generics, India already has a huge presence in the highly regulated markets in terms of pharma exports. Almost two thirds of Indian generic exports are to the highly regulated markets, which speaks volumes about the quality of Indian medicines.
“The Government of India is supporting Brand India Pharma campaign to reiterate that the Indian pharma market offers credible, affordable and sustainable healthcare solutions.”