Increased Global R&D Ventures by Indian Pharmaceutical Firms: Insights
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New Delhi, Dec 24 (NationPress) A surge in the number of Indian firms is anticipated to establish new, specialized research and development entities in overseas locations, notably within the US and Europe, according to a report released on Tuesday.
The analysis from GlobalData, a prominent data and analytics organization, indicates that Indian pharmaceutical companies are increasingly prioritizing innovative research and development.
Historically, major Indian pharmaceutical giants such as Sun Pharma and Dr. Reddy’s conducted their innovative research and development primarily in India while operating through dedicated research branches located abroad.
“By separating their research and development divisions and forming new research-focused firms, parent companies shield their primary operations from risks linked to potential research failures without adversely affecting their overall financial performance,” explained Prashant Khadayate, a Pharma Analyst at GlobalData.
He further mentioned that this strategy will also enable research firms to “attract greater investment from stakeholders”.
Conversely, several companies have begun to set up specialized research operations in key markets such as the US and Europe.
Companies like Zydus Lifesciences, Glenmark Pharma, Alembic Pharmaceuticals, and Suven Life Sciences serve as examples of this trend.
According to GlobalData’s Pharmaceutical Intelligence Center, as of December 20, there are currently 16 drugs in various phases of development from Phase I to Phase III, with these firms holding a presence in the US or Europe. Notably, two drugs are already in Phase III.
“Indian pharmaceutical companies with research facilities in the US or Europe are undoubtedly gaining from the local expertise in these regions. The drugs in development from these entities appear promising and are likely to yield significant returns for them in the future,” Khadayate added.
He observed that other Indian firms are expected to follow the successful model set by these companies.
This shift will not only assist Indian companies in solidifying their position in the realm of innovative research and development but will also propel their global expansion in the field of innovative drugs, he concluded.
