Skip to main content

India Is Well-Poised to Lead the Global API Industry

Despite the uncertain global economic climate, the growth momentum for generic drug spending will continue says Catherine Tang, Biomedical industry practice leader for the Spire Research and Consulting. Its share of total drug spending is set to increase. Demand growth, primarily from emerging markets, is being accelerated by healthcare reforms in the major developed markets of USA and Europe; as well as impending patent cliffs, where some USD 75 billion worth of drugs go off patent between 2012 and 2015. This presents new potential for manufacturers of API and drug intermediates (active pharmaceutical ingredients and excipient components used in generic formulations) in India. 

India is well-poised in the global API industry, but headwinds from higher export barriers and increased pharma co-vigilance are major threats that will inevitably raise production costs and erode margins. To retain its pole position in the competitive generic market and claim blue sky space, API manufacturers need to relook business processes to operate more efficiently. And to keep Indian drugs on the world-stage amidst rising defaults on quality, India-based API manufacturers should invest in branding to make made-in-India drugs more acceptable globally.

What would make India the No1 producer of APIs?


Assurance of quality has to be the uppermost priority, given the new requirements from Europe. Indian drug manufacturers will need a quality assurance and branding strategy to complement its current low-cost value proposition. 

In light of increased FDA inspections, companies might adopt technology to automate process data collection such that the complex manufacturing processes can be better managed. Investing in information management systems will help optimize workflow, derive better quality metrics and ensure adequacy of audit trails.

The current physical infrastructure for inbound logistics has a direct impact on competitiveness. In this regard, India is out-competed by other global drug production hubs like Singapore, Ireland and Puerto Rico. The government has a role to play here in nurturing the industrial infrastructure for API production, taking a leaf from what Singapore has done with its Tuas biomedical park.

API manufacturers should also consider backward integration to reduce reliance on the import of raw materials from China and other countries. Product registration fees and other forms of levies applicable to Indian API exporters warrant concrete mitigation strategies in order for India to remain competitive on the world stage.

As the #3 exporter of generic drugs, Indian drug makers and pharma labs continue to receive strategic support from the government and industry councils. But new challenges on the blue-sky horizon call for the financial assistance provided by the government to expand so as to support upstream investment in process automation especially information management systems. 

Lastly, Indian exporters should reach out to emerging markets with messages not only on cost-effective medicines but also value co-creating initiatives that encourage collaborative strategies with destination countries and companies.

Where are we lagging behind? 

The growth of Indian companies in the pharma industry is handicapped by differential laws and regulation within India itself. The industry would benefit from a consolidation of the API manufacturers so that benefits of scale can be reaped. Lastly, more efforts are needed to raise the global customer confidence level associated with made-in-India drugs.


About Catherine Tang:

Catherine Tang is the biomedical industry practice leader for the Spire Research and Consulting group. She has over 18 years of experience in this sector, having previously worked for Boston Scientific and Medtronic, among other firms. Her career experience ranges across advanced wound therapeutics, heart valves and cardiothoracic devices to non-invasive therapies for gastroenterology, cardiology and urology. Catherine holds an MBA degree from the National University of Singapore and a BBA degree (Dean’s List) from Curtin University of Technology.


Links to coverage:











Comments

Popular posts from this blog

Deploying Industry 4.0 technology to mitigate climate change

A report highlights that by 2050, Arctic temperatures are expected to rise by 3 to 5°C, leading to a rise in sea levels and threatening the homes of four million people. Solutions using Artificial Intelligence could incorporate data from smart meters and Internet of things (IOT) sensors to predict a city’s energy demand so as to help optimize energy production. Carbon emissions could be significantly reduced through the use of 3D printing and raw material water reduction. How can advanced technology like AI, IoT and 3D printing help tackle climate change? Read more :  https://www.spireresearch.com/newsroom/spirethoughts/deploying-industry-4-0-technology-to-mitigate-climate-change/

Spire talks about ASEAN B2B marketing best practices for companies in Osaka

Spire participated in a seminar organized on Go-to-Market best practices in the B2B space in Asia. The event was held on 14th June in Osaka, Japan. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting Group, shared insights on ASEAN marketing trends with senior executives of Japanese companies headquartered in the Kansai region of Japan. Jeffrey shared business-to-business (B2B) marketing tips for Japanese companies struggling to work with local partners in ASEAN countries. The Asian ‘Tiger Cub Economies’ country landscape is evolving, with new emerging economies joining the ranks. Vietnam has joined Indonesia and Thailand as one of the low-cost production hubs in ASEAN, whereas the Philippines has emerged to become one of the key markets for sourcing materials for secondary industries. Therefore, the right ASEAN countries should be selected depending on one’s market position and strategic intent. For certain industries, the market dynamics a...

Success factors for developed economies

As economies continue to become more developed, what key factors constitute to success? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in Business Times – Singapore. With more developed economies on the rise, growth is essential through ecosystems that require adequate nurture to enable productivity, growth and innovation. It is equally important to maintain the entrepreneur spirit and innovation with a culture that supports unorthodox thinking, creativity along with risk-taking. Another key factor for economic success is the education system. The quality determines the ability to push future leaders, designers, inventors and thinkers to think out of the box and nurture innovation as well as entrepreneurship. Read more:  https://www.spireresearch.com/newsroom/media/success-factors-for-competitive-economies/

The Francophone BPO sector is lifting Madagascar’s economic growth

Madagascar’s BPO sector serving the Francophone world has flourished in the last 15 years, thanks to e-commerce and Artificial Intelligence. French language skills combined with high speed internet availability as well as good quality and low cost human resources has attracted investors. Madagascar’s BPO sector has help boost the rising middle class in a society where 75 per cent of the people still live on less than USD2 a day. Will Madagascar’s Francophone BPO industry help sustain economic growth? Get more insights:  https://www.spireresearch.com/newsroom/spirethoughts/the-francophone-bpo-sector-is-lifting-madagascars-economic-growth/

Asia-Pacific nations poised to sign the world’s largest multi-lateral trade agreement, RCEP, in 2020

After six years of negotiations, more than a dozen countries in the Asia-Pacific are poised to sign the world’s largest trade agreement, known as the Regional Comprehensive Partnership (RCEP), in 2020. This agreement would boost commerce among participating countries by lowering tariffs as well as standardizing customs rules and procedures. The RCEP will widen market access, especially for those countries that do not have existing many bilateral trade agreements in place. Will India pay a price for its decision to stay out of the RCEP? Read more:  https://www.spireresearch.com/newsroom/spirethoughts/asia-pacific-nations-poised-to-sign-the-worlds-largest-multi-lateral-trade-agreement-rcep-in-2020/