The US-based pharma and biotechnology companies, particularly small and medium enterprises (SMEs) numbering over 4,500, are looking at India for potential partnerships?either joint venture or acquisition or offshore outsourcing or sharing of tech know-how?to offset the possible dip in their overall business prospects over the years due to high production and marketing costs and lack of products.
?We see number of US companies, particularly that of small and medium pharma and biotech, looking at India to reduce their overall production cost, increase productivity, reduce cycle times, introduction of new therapies apart from capturing local markets,? said Murali Parthasarathy, managing director, Learning Organised, a US-based pharma and biotechnology consultancy and business development organisation.
?If one were to go with the current trend, Indian companies will be in a position to do multi-billion dollar worth business over the years,? he added.
In an interview with the FE recently, he said, ?Due to pressure from the venture capitalists and other investors coupled with high cost production, the US companies have forced to find alternate strategy to not only remain active but to stay competitive. In order to introduce newer therapies and molecules to stay fit in the ever-increasing competitive market, these small and medium pharma companies are keen to have tie-ups with global pharmaceutical companies, particularly those in India and China for their future prospects.?
In addition to that, these companies also looking at tieing up for developing new vaccines, involve in drug discovery and clinical trials apart from focussing on industry-academia partnerships to move technologies from bench to bed side, he said.
?Majority of these small US companies have left with only a few products which are not in great demand. With their future survival at risk, these companies have been forced to look at Indian companies for possible tie-ups, acquisitions or joint ventures in different areas,? Parthasarathy pointed out.
With huge skill sets, R&D capabilities, IP protection and great value, India holds great potential for the small and medium US companies to do a great business.
?It is a win-win situation for both US and Indian companies,? he said further.
Some of the areas which offer potential collaboration include, developing small and large molecules in the areas of cardiovascular, diabetes, cancer, pains, vaccines development and clinical trials, he said further.
?We are currently involved in at least 10 such deals between US and Indian companies which are at earlier stages. The deals are worth anywhere between Rs 100 crore and Rs 1,000 crore and we hope to complete at least a few among them in due course of time,? he said.
Learning Organised will provide end-to-end consultancy service, including raising funds, facilitating joint ventures, short and long-term project tie-ups, he added.