Mid-cap pharma companies to storm U.S. market

By agencies   |   Monday, 25 July 2005, 07:00 Hrs
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MUMBAI: Even as top-rung Indian generic pharma companies are facing intense competition and price erosion in the U.S. market, at least 10 mid-cap Indian pharma companies are gearing up to enter this market, through joint venture (JV) partnerships with U.S. companies or through acquisitions. "The number of Indian players in the US market will double by the end of this year, with as many as 10 mid-cap companies are entering the market," said an industry source. These are with turnover ranging from $46 million - $68 million. Mumbai-based Indoco Remedies is entering the U.S. market through a JV. Others with similar plans include Ind Swift Laboratories, Intas and JB Chemicals, said sources. The larger companies that already have a presence in the U.S. either through a JV or with their own manufacturing facilities are Ranbaxy Labs, Dr Reddys, Sun, Cadila, Torrent and Cipla. Apart from eyeing a share of the $70 billion opportunity in the next seven years with drugs going off-patent, these Indian companies have identified JVs and acquisitions as the best way to procure marketing licences for the US, and at the same time manufacture their products cost effectively in India. Once JVs are entered into, licences can be transferred to the Indian company which can then manufacture at one-fourth the cost and export it to the U.S. This process, called site variation, would require that the Indian site be FDA approved.

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