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China better than India for making drugs
By agencies
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Friday, 04 August 2006, 19:30 IST
NEW DELHI: China is considered better than India as a manufacturing base for low-cost drugs, according to a new study by a global business-consulting firm. The reports, which give the rating based on the views of a majority of international executives, added that many of them were keen to do business in India in future.
Bain & Company, conducted the study, sampling of 179 international executives with headquarters in North America, Europe, Asia and India also expressed concerns about intellectual property protection (56 percent), parallel trade or grey market imports (52 percent) and regulatory uncertainty (46 percent) affecting the Indian industry.
The results released in New Delhi, reveals that nearly 90 percent of pharmaceutical executives considered China a better choice than India for low-cost drug manufacturing. Furthermore, only 17 percent of the respondents cited innovation as a key asset of Indian drug makers.
"If India is looking to be the home for quality generic drugs, it needs to step up its innovation game," said Ashish Singh, managing director of Bain & Company India and leader of the consulting firm's Indian Pharma Survey.
The study rates Ranbaxy Laboratories, Dr Reddy's Laboratories, and Cipla as best those positioned for leadership in the Indian market in five years.
Despite the concerns, international executives increasingly expect greater collaboration with India in the future. While only 38 percent of the respondents now consider doing business in India to be "extremely important", that number jumps to 62 percent when survey participants were asked to project the marketplace five years from now.
Similarly, 35 percent characterized India as an "attractive" market in 2006 (as a domestic market for drug purchase and consumption), while 58 percent expected the market to look up by 2011.