Tuesday, April 2, 2013

Challenges for MNC Pharma Companies in India grows

MNC pharma companies have always shown interest in emerging markets and India is one such preferred destination. But, over a period of time, challenges for MNC pharma companies in India have only grown. Like the recent back to back rulings that have gone against them. The recent ruling by the Indian Supreme Court dismissed Novartis's appeal for patent protection of its anti-cancer drug Glivec. There is no doubt that these verdicts are in the consumer's interest, as more drugs can be availed at cheaper prices. But there is the other side of the coin too. MNCs have articulated that they are charging for the innovation of a new drug and it was their cost pertaining to the R&D done in order to bring a new drug to the market.

Thus, if such events increase, there is possibility that MNC companies will avoid bringing innovative drugs in the Indian markets. Having said that, the other stronger fact is that the drug pipelines of global MNCs are drying. And hence, emerging markets have become an area of interest. Therefore, in order to survive in the Indian market, MNCs can't completely do away without launching new products. They might have to compromise on the price front and find out new ways to sustain growth in the Indian market.