Glaxo India Chief Looks To Next Decade

India's drug industry will be on the fast track for growth in the next decade, with the signing of the Trade-Related Intellectual Property Rights agreement and multinational companies registering their new drugs for patenting, according to Glaxo India chairman, Mr T Thomas.

He told the company annual general meeting that "as the market grows and profitability improves, Indian drug companies, either on their own or more likely in association with international companies, could become a source of low-cost manufacturing as well as international R&D." Indian firms would strengthen their links with multinationals through the supply of generics and joint funding of R&D in India to take advantage of lower costs, with the understanding that the Indian partner would acquire marketing rights for India and some neighboring regions.

Mr Thomas was hopeful that some multinationals would license patented drugs to Indian firms, and others might wish to comarket them to achieve speedy market coverage. Indian firms "are well aware of this inevitable change in scenario, and are wisely responding to preserve their position," he said. "Their objective, rightly, is to have access to international technology and to create critical mass in each company that can afford to support R&D and marketing in the future." To this end, many have formed alliances with drug multinationals, and some have set up or acquired generics firms abroad.