Indian Complexities Affect Eli Lilly's Manufacturing Plans
Objections raised by the Indian Department of Chemicals have led RanbaxyLaboratories of India to drop plans to transfer the manufacturing obligations of Eli Lilly Ranbaxy to Ranbaxy Lilly. The company has decided instead to shift the site of ELR's proposed manufacturing facility from Madhya Pradesh to Mohali, Punjab, where Ranbaxy Lilly's manufacturing plant is being set up.
ELR has recently launched two formulations, Iletin 30/70 (biphasic isophane insulin) and Gemcite (gemcitabine) for the treatment of diabetic and cancer patients respectively, and plans to expand its product range.
The Indian DoC had opposed Ranbaxy's proposal to transfer ELR's manufacturing facilities as it would have converted ELR into a marketing and trading company with no manufacturing obligations. The DoC said that marketing subsidiaries involving foreign equity in the pharmaceutical sector should be discouraged.
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