Collaborations are a secret boon for the Pharma Industry in India
After it was recently announced that Bristol-Meyes Squibb and Astra Zenca ended their partnership and Aurobindo Pharma would acquire Dublin-based Actavis, the question on everyone’s minds seems to be, what next?
The pharma industry has seen a double-growth in recent times owing to breakthrough patents in the field of cancer drugs and research. Therapies which are closely linked to winter related ailments, have posted strong double digit growths (such as respiratory at over 18.7 per cent, pain or analgesics at over 10.1 per cent), resulting in acute therapies growing faster than chronic segment, for the second consecutive month.
For the full year 2013, the pharmaceutical market was reported at Rs 78,644 crore, with a growth of 9.9 per cent, over the same period last year.
The Indian market has witnessed a healthy double-digit growth since 2006, driven by a vibrant economy and a steady rise in incomes. After clocking a CAGR of 15 per cent during the period 2008-12 the market has slowed progressively, and has registered a growth of 9.9 per cent in 2013. Price control measures (DPCO 2013 notification in mid 2013) and the uncertainty surrounding its implementation both in the trade as well as at the company level, combined with the overall slump in economy have contributed to this slowdown.
The pharma industry is historically known for its secrecy, but collaborations between big names in pharma could well be more for good than bad. These alliances between big pharma companies and biotechs are becoming a more common way to share the high risk of bringing new therapeutics to the market.