Indian pharma must step up R&D, compliance focus for global play
This piece of news in today's Economic times perfectly analyzes the Indian pharma industry's hurdles going global.
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The article discusses about problems like
1. The cost of compliance is slated to increase in the years ahead.
2. The regulatory clamps faced by Indian pharma
companies from foreign drug regulators.
3. Increasing investment towards research and development from the current average of 6-7 per cent of their revenues.
4. Global pricing pressures in drugs area.
5. The rampant consolidation in the global pharma
landscape with Indian companies also buying assets to scale up inorganically.
To cut dependency on a single market, companies are
diversifying geographic footprint. This increases their risk profile as they
are subject to the vagaries of the different markets they enter. For instance,
companies faced pricing pressure in Germany and currency volatility was aproblem
in Russia and CIS countries.
The overall risk profile of the pharma sector has
changed in the recent years. Make no mistake. It's no longer a classic
defensive sector.
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