| The purpose of this article is to generate confidence | | | | Aspects of Intellectual Property Rights, the industry |
| in Indian suppliers that serve Canadian and online | | | | entered a more collaborative environment with |
| pharmacies. India commands the dominant world | | | | western pharmaceutical industry than during the |
| market share as manufacturer and exporter of | | | | earlier developmental period. This reorientation of the |
| generic product. | | | | industry resulted in these important changes. |
| Indian suppliers are the generic sourcing choice for | | | | 1. A segment still focuses on generic as its prime |
| Canadian and online pharmacies because globalization | | | | business. In this segment 80% of generic production |
| is driving them toward U.S. FDA compliance in the | | | | is targeted for US, EU and Japan. |
| move to more collaborative relationships with the US, | | | | 2. A major segment is focusing on development of |
| EU and Japan. Learn more. | | | | new medicines. This has spawned new research |
| Evolution of the Indian pharmaceutical industry: | | | | relationships between Indian firms and western giants |
| In the 50's and 60's India had minimal domestic | | | | like Ely Lily. |
| pharmaceutical production. They were dependent on | | | | 3. Contract manufacturing for western giants is the |
| western sources for medicines which they could ill | | | | last segment of the reorientation. |
| afford. The Indian government instituted tariffs and | | | | The most significant change resulting from patent |
| liberalized patent laws to nurture a domestic | | | | reform is movement of the entire Indian |
| pharmaceutical industry. The patent laws allowed | | | | pharmaceutical industry toward US FDA compliance |
| Indian companies to copy expensive original | | | | due to the new western focus on so many touch |
| preparations by foreign firms and produced these by | | | | points. The US, EU and Japan are the most lucrative |
| means of alternative production procedures. This had | | | | world markets. Since the US FDA governs the major |
| the effect of allowing Indian manufactures to | | | | segment of export target market the move to FDA |
| duplicate western formulations before the expiration | | | | standards serves the reorientation of the Indian |
| of the patent in the country of origin, typically the | | | | pharmaceutical industry. |
| US. This environment caused western pharmaceutical | | | | Here are some relevant excerpts and website links. |
| companies to withdraw from India. | | | | The Indian pharmaceutical industry is also getting |
| From the 70's to 2005 the Indian pharmaceutical | | | | increasingly U.S. FDA compliant to harness the growth |
| industry experienced double digit growth. They | | | | opportunities in areas of contract manufacturing and |
| became expert at producing western preparations | | | | research. Indian companies such as Ranbaxy, Sun |
| using a slightly modified process to stay within Indian | | | | Pharma, and Dr. Reddy's are increasingly focusing on |
| patent law. They became known as the "Pharmacy | | | | tapping the U.S. generic market. Recently, Ranbaxy |
| of the poor". Low wages and high educational | | | | Laboratories Ltd has received a tentative approval |
| standards lent it self well to super charging the | | | | from the US Food and Drug Administration to |
| growth of the pharmaceutical industry. Focusing on | | | | manufacture and market Lamivudine tablets (150 |
| generic production eliminated developmental risk as | | | | mg), a medicine used in treating HIV infection. This |
| well as prohibitively expensive research dollars. India | | | | tentative approval has been granted under the US |
| holds 20% of the world generic market but 2% of | | | | President's Emergency Plan for AIDS Relief Initiative |
| the pharmaceutical world market. 22% of total | | | | (PEPFAR). |
| generic production is exported and of that 80% goes | | | | Wage costs in the Indian drugs industry come to only |
| to US and the EU. | | | | about 30% of the European level or 20% of the US |
| After the 2005 patent law reform, which resulted in | | | | level. Overall drugs manufacturing in India is up to |
| the adoption of the Agreement on Trade-Related | | | | 50% cheaper than in western industrial countries. |