Indian pharmaceutical industry has long focused on the sales of its low-cost generics in high volumes thereby resulting in limited expenditure in R&D. But there are certain north based Indian pharma companies that are breaking the mould by inventing novel research product, according to Pawan Chaudhary, CMD, Venus Remedies Limited.
In a discussion on the prospects of the pharma enterprises in north India, Chaudhary said that the industry in the region spanning from Punjab to Uttar Pradesh has offered compelling advantages which cannot be ignored. The pharma industry in north India is dominated by listed companies like Ranbaxy Laboratories, Jubilant Organosys, Surya Pharma, Nectar Lifesciences, Panacea Biotec, Ind-Swift Group, Fresenius Kabi Oncology the erstwhile Dabur Pharma, Jagsonpal Pharma and Venus Remedies. These companies have invested in high-tech R&D laboratories which are US FDA approved facilities with strategic tie-ups and looking at massive expansion and investments for new technologies, he said.
Post 2005, the Union government identified the excise free zones and in the last few years, these hubs now sans tax benefits. But in the Union Budget 2010-11 sops like the weighted deduction for in-house R&D increasing from 150 per cent to 200 per cent, is viewed to reduce the tax liability of drug companies, leading to enhanced plough-back of profits. Moreover, the government has also plans to create a Rs.3,000 crore pharmaceutical fund to promote innovative drug discovery like biologics. These moves are exceptionally gratifying, stated the Venus Remedies CMD.
The contract manufacturer initiative in India is on the rise with increasing number of US companies opting out for outsourcing R&D and manufacturing to reduce operating expenses. Himachal Pradesh being the excise free zone offers a conducive environment to the pharmaceutical players to grow well. Moreover, the contract manufacturing is a profitable business that allows a company to have multiple customers, they produce for with reduced costs in acquiring the raw material and zero marketing expense to promote the brand.
source: Pharmabiz
