Indian drugmakers to target patent expiries

Global patents on many major drugs with sales of millions of dollars will expire by 2007-08, which the Indian pharmaceuticals industry is targeting. Using these or generic copies, Indian pharmaceutical companies will participate in rapid growth of both domestic and export sales, according to a study carried out by the Associated Chambers of Commerce and Industry of India (ACCII).

This study forecast export sales, driven mainly by generic drugs, will top 300.0 billion rupees ($6.69 billion) by 2009, as drugs valued at $65.0 billion in the USA and Europe go off-patent over this period. It stated that sales of the pharmaceutical sector in the current financial year (2005-06) would be around 480.0 billion rupees, up from 430.0 billion rupees in 2004-05, with exports worth some 220.0 billion. Total turnover is expected to rise a steep 11% to 600.0 billion rupees by 2007-08.

Releasing the study, ACCII president Anil Agarwal said: "India's low production costs give our pharma industry an edge over other countries - particularly China and Israel - especially with generic drugs. Overall, it is probably easier for Indian manufacturers to obtain a larger share of overseas markets than of the domestic market, where price controls are likely to continue. Consequently, pharma majors would have no option but to explore export opportunities."