In the wake of the Ranbaxy scandals (see this post on our sister site, Health Issues India), multinational pharma is predicting doom for India’s generics industry. This well-written piece by former Canadian politician (and former PhRMA staffer) Chris Ward comes from the latest Pharmaceutical Executive. You would not expect Ward to take a charitable view and, indeed, he gives a taste of the arguments that the MNCs will be making in Europe and the US. It also highlights the tough battle that Indian producers will face in getting biosimilars (generic versions of more complex medical molecules) approved in industrialised countries.
The MNCs are increasingly making a pitch to middle class buyers in the emerging economies: it’s worth paying a premium for American regulation. It seems to be working as, in recent, weeks several large Indian private hospitals have publicly abandoned Ranbaxy and even other generic producers (see this Health Issues India posting). In the end, this may be what forces the Indian government’s hand in strengthening the domestic and international perception of rigorous overview by India’s Central Drugs Standards Control Organisation and the Drugs Controller General of India. Certainly, India’s aggressive and effective Commerce Industry will be worrying about how to meet its ambitious targets for pharma exports and about how to maintain its reputational advantage over Chinese competitors and oters from fast-growing economies.