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      New patent laws lure pharma MNCs to India

      Posted AtThe Economic Times

      India is increasingly becoming the darling of pharma MNCs, who are vying with each other to set up operations here. One of the main triggers for this growth is the change in the country's patent laws.

      Haruo Naito, president and CEO of Eisai, recently made his first trip to India. If anything, it's a clear sign that Japan's fourth largest pharmaceutical company has big plans for India. The company has just set up its operations in India and has already rolled out two products into the domestic market.

      "One factor that played a role in bringing Eisai to India is the passing of product patent law," says Deepak Naik, MD of Eisai Pharmaceuticals India. The other factor was that Eisai's early experience in the country gave a positive sign on the potential of the country.

      "We outlicensed our product, Methycobal, to Wockhardt a few years ago and that product created a market of Rs 150 crore," Mr Naik said. Two months ago, Eisai launched two more products -- Aricept and Parit (being marketed by GlaxoSmithKline) -- and both are doing "very well."

      What's more, Eisai is now looking at other options for taking advantage of India's growth. "We are doing the feasibility for other aspects of business," said Mr Naik. Some of the future investments could be in R&D and clinical trials.

      November 18, 2005


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