Indian pharma poised for exciting times
BANGALORE, INDIA: Zinnov Management Consulting, one of the leading management consultancy firm in India has released the findings of an in-depth study on the ‘Indian Pharmaceutical Offshoring Landscape’. The study provides a detailed analysis of the Indian pharmaceutical offshoring industry which is slated to become a $2.5 billion opportunity by2012. One of the key factors driving the Indian Pharma Factoids.
India’s rich talent pool of nearly 13.5 million science graduates growing at the rate of 36% plays a major role in the growth of outsourcing of drug development processes:
• Pharmaceutical Translation market has also seen growth due to frequent clinical trials conducted in India by pharmaceutical companies; demand of around 160,000 translators likely by 2010
Offshoringwave is increasing R&D costs, which in-turn is compelling Pharmaceutical organizationsin the US and EU to look fornew low cost R&D destinations such as India and China.
Accordingto the study, the Indian pharma sector is also growing robustly and is expected to move from being domestic led to exports driven by 2010. A transitionis also being observed in the growth of pharmaceutical markets from the topseven established pharmaceutical markets to emerging markets like India, China, Brazil, Mexico, South Korea and Russia – which will grow at 12-13 % in 2008, andbecome a USD 85-90 billion market, captures the study.
Talking about the study, Pari Natarajan, CEO, Zinnov Management Consulting,says, “Influx of outsourced work from global pharmaceutical companies has giventhe necessary impetus for the creation of pharma Special Economic Zones (SEZ),which would be one of the key drivers of outsourced pharmaceutical services growthin the coming future”.
“Indianpharmaceutical companies need to penetrate further in generics market inregulated countries and also increase their investment in R&D to move togain expertise in higher value chain processes. Today, pharmaceutical is one ofthe most happening industries globally, and India has the potential to becomeone of the key global pharmaceutical players and also become the backbone ofoffshored services in Pharmaceuticals”, he added.
The success of pharmaceutical offshoring / outsourcing is aided by therich pharma talent pool and the spread of pharma-educational institutes. The Governmenthas also provided tax incentives to the pharmaceutical industry and has takennecessary steps to enact tough laws on data security and IP related issues to mitigate certain offshoring challenges. Development of Pharma Special Economic Zones SEZs is a key step by the Government to enable the growth of pharmaindustry, finds the study.
“Zinnov has deep understanding ofthe drug development chain and over the years, has played a key role in helping many pharma companies analyze the pharmaceutical market at both India and Global level. Clinical trials today dominate the development offshoringmarket landscape followed by clinical data management. Marketing and sales is another key component of pharmaceutical drug development value chain and iscurrently a $100 million market, which is expected to grow at a CAGR of 36% till 2012,” said Rishikesh Mandilwar, Director, Zinnov Management Consulting Pvt Ltd.
October 06, 2008