Published on December 9, 2013
In recent times lot has been discussed and reviewed for Indian pharma industry. The industry is in full mood and is trying its best to overcome the USFDA issues and fake drug controversies. It is working hard to revive its lost image. In past few months lot of damage has been done to India’s international image. The government believes that the vested interests are deliberately tarnishing the image of Indian drug industry. For this reason India is showcasing its best pharmaceutical techniques to regulators from emerging economies to counter the negative publicity of Indian drug industry. Delegates from Kenya and Egypt were shown Indian pharma plants to assure them about quality product. Indian export for drugs in the year 2013 was around Rs. 79,500 crore. In order to continue and improve the further exports efforts are made by government as well as pharmaceutical industry.
The other turbulent blow for India pharma was the Ranbaxy and Daichee mess. With recent ban on drugs manufactured at Mohali plant, the company was already in trouble. To add further was the allegations issued against Ranbaxy promoters Malvinder and Shivinder Mohan Singh by Daichee itself regarding hiding of information during the agreement. In spite of all these controversies, still Japanese companies are showing interest in Indian generic drug industry.
In a recent move USA based KKR & Co LP has decided to invest about $200 million in India drug maker Gland Pharma Ltd. This is recognized as one of the largest equity investment in the local pharmaceutical sector. As per the deal KKR will acquire a minority holding in Gland pharma. This in turn has been a very positive outcome for the Indian drug industry.
In a recent report released the M&A activities sharply declined in 2012. Still the figure has improved with 2013 and there was increase of 26.1% in Merger and Acquisitions activity in India. The majority of M&A were witnessed with USA based companies. To add to further was the government decision to drop the idea of limiting foreign investment. Still the decision is pending. The authorities are divided in their opinion. Many has welcomed this by stating that India pharma industry is quite big and such cap on foreign investment is not good for its health.
