Sunday, April 26, 2009
Pharmaceutical firms in India defy slowdown
Pharmaceutical firms are defying a broad-based slowdown in Indian exports. Growing demand for cheap, generic drugs is proving a particular boon, reflected in a 46% year-on-year rise in exports to the U.S. during December, the last month for which finalized data are available.
Most pharmaceutical firms In India expect their domestic market to grow at around 20% this year and to maintain their operating margins, which are often close to 50%. A study by the Organisation of Pharmaceutical Producers of India suggests that the booming contract research outsourcing industry will expand from $400 million in turnover during 2007-08 to $1.3 billion in 2011-12 and $3 billion in 2015.
These are fairly new firms, but most others have built their balance sheets over some time. The oldest is Cipla, a 65-year old company with historical associations with Mahatma Gandhi that has developed a new strategy for getting retrovirals and other acute disease treatments cheaply into developing countries, despite opposition from the large international drug firms.
Forbes
Most pharmaceutical firms In India expect their domestic market to grow at around 20% this year and to maintain their operating margins, which are often close to 50%. A study by the Organisation of Pharmaceutical Producers of India suggests that the booming contract research outsourcing industry will expand from $400 million in turnover during 2007-08 to $1.3 billion in 2011-12 and $3 billion in 2015.
These are fairly new firms, but most others have built their balance sheets over some time. The oldest is Cipla, a 65-year old company with historical associations with Mahatma Gandhi that has developed a new strategy for getting retrovirals and other acute disease treatments cheaply into developing countries, despite opposition from the large international drug firms.
Forbes
