Inorganic international growth seems to be the new trend. Indian biotech industry is repackaging itself from a low end research/manufacturing base and positioning itself as global players!
From Pharma Pulse

The latest Pharma Insights report from PriceWaterhouseCoopers (PWC) indicates that as pressures on the pharmaceutical industry increase, global consolidation will continue. According to the study, the consolidation will lead to the creation of new ‘big biotech’ companies in the Asia-Pacific region. The lack of research and development (R&D) productivity, expiring patents, generic competition and high profile product recalls are driving the mergers and acquisition (M&A) activity in the sector.
In India a number of companies have made M&As in global markets. For the moment, the big pharma companies will be divesting non-core divisions such as Over-the-Counter (OTC), furthering mid-tier consolidation in the European pharmaceutical sector. Timmy S Kandhari, Executive Director, Financial Advisory Services, PriceWaterhouse-Coopers, suggests the consolidation activity in Europe and Asia will continue next year as well. “In India, it will be driven in the medium term by implementation of the new patent regime and generic companies looking to establish a low-cost base out of the country,” he says. Moreover, it appears Indian companies will continue to look at acquisition opportunities in the regulated market, especially Europe

From Yahoo News

Bilcare Limited, a research-based
pharmaceutical packaging solutions company, today announced that it has
acquired ProClinical, Inc., a Pennsylvania-based pharmaceutical services and
packaging company. The acquisition is in line with Bilcare’s strategy to
expand its global presence, and takes the company closer to achieving its
vision of becoming the world leader in the pharmaceutical packaging industry
by 2010.

From pharma pulse

Nicholas Piramal acquired 17 percent in Canadian biotech research company, Biosyntech (pharma packaging company) in July 2005. Similarly, in June 2005, Torrent acquired Heumann Pharma, a generic drug company that was earlier a part of Pfizer. And Matrix’s acquisition of the Belgian firm Docpharma was the largest acquisition deal.

From Sify

Last month Matrix undertook one of the pharma industry’s largest acquisition deals when it acquired Belgian firm, Docpharma, and late last year Hikal bought 50 per cent in Danish marketing company, Marsing.

And just last month, E&Y was saying this

The Report has identified India as an emerging hub for collaborative and outsourcedR&D. Says Jairaj Purandare, chairman, Ernst & Young India, “Several Indian pharma companies are now holding on to their own on the world stage. Our pool of trained chemists, excellent track record of innovation and US FDA approvedmanufacturing facilities enable local players to offer significant benefits in the drug development process. “
According to the report, “many global companies are confronted by a value crisis as they try to sustain a business model based on high costs of manufacturing, R&D,marketing and sales, increasing regulatory scrutiny and reimbursement pressures. Countries that can combine lower cost manufacturing with adequate regulatory protection of intellectual property are well positioned to attract large pharmaceuticalcompanies, India being a prime example.” Approximately 30-50 per cent cost saving opportunity is possible in India, it adds.
“We are seeing a fundamental shift in Indian companies’ approach from business-driven research to an increasing focus on research-driven business,” says Utkarsh Palnitkar, Ernst & Young India’s Healthsciences Industry leader.
In the changing landscape Indian companies are adopting a combination of alternative business models to navigate competition and opportunity. These include
a) Focusing on export led growth through subsidiaries or acquisitions in high margin regulated markets;
b) Bolstering NCE research capabilities
c) Partnering across the value chain with multinationals through licensing, collaborative R&D or co-marketing arrangements
d) Contract research and manufacturing
Explains Utkarsh “Indian generic drug makers have been particularly successful in developing non infringing processes and some are also honing their understanding of patent regulations, which is enabling them to aggressively litigate and challengepatent claims and enjoy longer exclusivity periods.” Indian pharma companies topped drug filings with USFDA for ’03, having filed a total of 126 DMFs, accounting for 20 per cent of all drugs coming into the US market, higher than Spain, Italy, Israel, and China. Of the 108 Abbreviated New Drug Applications (ANDA) pending approval from the US FDA in February 2004, as many as 52 were patent challenges and nearly half of these were for first to file (180 day market exclusivity).

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