Corporate strategies adopted by Indian Pharmaceutical Industry for restructuring
The Indian pharmaceutical industry has developed rapidly over the last few decades. Before TRIPS, the Indian regulatory system recognized only process patents. The Indian Pharmaceutical companies were engaged in the development of new processes for manufacturing drugs. They mainly concentrated on the domestic markets and unregulated markets. The Indian companies focussed very little on Research & Development (R&D). Even large pharmaceutical companies showed little interest on innovation and R & D. They mostly depended on imitation and reverse engineering of the patented products. But after TRIPS, product patent was reintroduced and the companies spent their expenditure on R&D, synthesis of new chemical entities (NEC), and on modification of already existing entities to develop new formulations and development of generics to obtain regulatory approvals for marketing already patent expired drugs. The multinational companies have turned to contract manufacturing and research services (CRAMS), marketing alliances, collaborative research and clinical trials to save time and cost. The main advantage of the Indian firms lies with their capability for low cost of production, and in their highly skilled technical labour. The manufacturing cost is less in India when compared to the US and the European countries. The Indian Pharmaceutical industry developed different types of strategies in order to survive and expand in the international pharmaceutical sector which involve collaborative strategies, business strategies, and overall corporate growth strategies.
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