INDIAN DRUGMAKERS TO TAKE ADVANTAGE AS DRUGS GO OFF-PATENT

The Indian drug market will grow by 11% in 2007–08, to reach a total size of INR600bn (US$13.67bn), as US$65bn worth of medicines lose their patent protection in the period, according to a recent study by industry body Assocham. The study also forecasts that Indian drug exports will grow by 18% in 2007–08 to reach INR300bn (US$6.84bn), compared to a figure of INR155bn (US$3.53bn) in 2003–04.

Industry observers claim that Indian drugmakers will be in a prime position to capitalise on the off-patent windfall, owing to their low production costs — up to 50% less on average than in developed countries — and their access to a wide base of quality manpower. By 2008, it is estimated that India's drug firms will have increased their share of the global market to 30%.