The foreign pharma companies are constantly facing the problem to carry on the growth momentum for the past few years. Expiry of patents and huge costs associated with research and development of new drugs is forcing the foreign companies to go for a partnership with the Indian companies.

All the big Indian pharma companies which include Dr Reddy's, Sun Pharma, Aurobindo Pharma, Torrent Pharma to name a few - have entered into agreement to either produce or to supply drugs to other countries.

Managing Director of Pfizer Mr. Kewal Handa says, “The reasons for partnerships are many. But I see two primary reasons. The Indian market is getting more regulated and thus offers more scope for multinationals. Secondly, big pharma are finding more value addition by tying up with Indian companies.”

Separately credit rating agency, Fitch cites that in 2012, branded drugs worth U.S. $52 billion is all set to go off patent compared with U.S. $21 billion in 2011. Revenue will further flow into the sector due to the ability of Indian companies to scale up productions, lower costs and ability to rope in strategic alliance.