The Indian pharma industry, which gains a major chunk of its revenues from the US generic drug market, is in belated mood following the win of democratic candidate, Barack Obama, in the US presidential elections. Generics drugs represent 65% of the total prescriptions dispensed in the US. The win of Obama, who favours cost savings as key to health reform and aims in his health plan to increase the use of generics, is expected to give a big push to the Indian copycat drug industry. Dora Hughes, health policy advisor to Obama, had stated Obama?s support for generics and biogenerics at the 2008 Annual Policy Conference of the Generic Pharmaceutical Association (GPhA).
In the year 2006-07, exports from India comprised 16% of the total drugs exported to the US market, which is the highest for a specific country. India has about 80 US Food and Drug Administration (FDA) approved plants, which is the highest number of US FDA plants outside the US.
Glenn Saldanha, CEO& MD, Glenmark Pharmaceuticals, said, ?We have been told that the Democrats? election manifesto talks of various initiatives to boost consumption of generic drugs. Hence, Obama becoming president will be positive for Indian generic manufacturers. With healthcare costs rising, generics manufacturers can play a big role in curtailing healthcare costs.?
TS Jaishankar, chairman of the Confederation of Indian Pharmaceutical Industry (CIPI), an association for small scale manufacturers, said, ?The Indian generics pharma industry can benefit from Democrats? stand, viz. increased use of generics to increase affordability of drugs. Also, Obama makes specific reference to the use of IT in healthcare delivery. I see an opportunity for India here.? The anticipated increase in generics to 82.1% in the new regime opens up a dream opportunity for Indian firms to capitalize on, with proper planning, he added.
Venkat Jasti, chairman, Pharmaceutical Export Promotion Council, said, ?For the pharma industry, there is nothing to be concerned about. There is not much technical manpower needed in the contract and custom manufacturing as in the case of IT. Obama?s views on the healthcare reforms will be beneficial to the Indian generic drug manufacturers.?
Swati Piramal, director, Piramal Healthcare, echoes the same view. ?The win of Obama, who is pro-active towards the generics industry, will be supportive for the Indian formulation drug manufacturers. There is nothing to worry for contract manufacturers over his views on outsourcing.?
However, the lack of clarity on Obama?s statement on outsourcing still worries a few of the industry honchos. Dara B Patel, secretary, Indian Drug Manufacturers Association (IDMA), said, ?We are little bit concerned over Obama?s statement on outsourcing. However, we hope it will not have a drastic impact as most of these are long-term contracts. Any drastic steps by Obama will hit hard the contract manufacturing industry as firms spend millions of dollars to set up USFDA approved plants. Anyway, it takes time to get a clear picture of his stance on outsourcing.?
Indian contract manufacturing market, which is estimated at $869 million in 2007, is projected to grow at a CAGRof about 41.7% to touch $2.46 billion by 2010. Indian Pharmaceutical Alliance, the powerful body of the topmost Indian drug firms, refused to comment. DG Shah, secretary general, IPA, said, ?As a matter of policy, IPA has no comment to offer.?