(MD, Kemwell Biopharma)
Under the Atmanirbhar Bharat campaign, the Government of India is taking several initiatives to make the country’s healthcare sector self-reliant. For example, last year we announced a production-linked incentive (PLI) ranging from 5% to 20% to boost the domestic production of key drug active ingredients (APIs).
In addition, the government has decided to work with various states to develop three megabulk drug parks that will be installed at a cost of Rs 14,300 Cr to produce life-saving chemicals and reduce imports from China. I am planning. We are also looking forward to raising import tariffs on various pharmaceuticals from 10% to 25% as a measure to promote local domestic production.
All these moves are being taken to ensure an uninterrupted supply of drugs to the public and affordable health care in the coming years. But before we move on, let’s take a step back and look at the challenges India has faced for many years.
India’s dependence on China
Currently, India is 100% dependent on China for blood pressure medications such as the heart drugs digoxin and losartan, 98.5% for antibiotics such as penicillin, and 99% for ciprofloxacin. According to a KPMG report, the number of diabetes treatments such as metformin and glimepiride is about the same. In addition, India was reported to be importing nearly $ 3.5 billion in bulk medicines from around the world in 2019, 67% ($ 2.4 billion) from China.
To reduce or end this dependence, India must build large-scale facilities to ensure the domestic production of medicines and the provision of other medical services.
Besides, there are other challenges as well. For example, when it comes to mass production of drugs, environmental factors bring additional disadvantages to India. Pharmaceutical factories cause a lot of pollution, but API production is a bit higher. To mitigate this, it takes time to set up a zero wastewater treatment plant. But at the same time, the cost of manufacturing the API increases.
How can Indian pharmaceutical companies be the solution to the world?
India’s pharmaceutical export market has grown significantly over the years, primarily due to low-cost R & D and availability of manufacturing capacity. In fact, the country offers greater cost-benefit, 37.5% lower than the United States and Europe. The country’s manufacturing facilities are backed by state-of-the-art equipment, and global regulatory approval is another major advantage in attracting foreign players to outsource to India.
India is also the largest exporter of OTC and generic drugs to the United States, with a market share of over 40%. This shows that the country has many years of experience and unparalleled expertise in this area, thereby producing high quality products for its customers. The Ministry of Commerce estimates that drug and drug exports in FY2009 (April 2020 to March 2021) reached $ 24.44 billion, a record growth of 18.07% compared to $ 20.58 billion. , The growth rate in FY2008 was 7.57%.
In fact, in the global Covid-19 crisis, India’s CDMO has demonstrated excellence in the generic industry by rapidly increasing production and ensuring that key products with high consumption levels are not in short supply. I did. The country made the largest export ever by shipping 50 million hydroxychloroquine tablets to the United States in May 2020.
But the real question is how to make this sector self-reliant.
The need to create an integrated ecosystem
The country currently has more than 3000 pharmaceutical companies and more than 10,500 manufacturing facilities. It is also the third largest drug seller in the world. However, the country is far behind when it comes to developing new drug molecules. As a result, it is becoming increasingly important to bring all stakeholders from Indian pharmaceutical companies, CROs and CDMOs under one umbrella to create opportunities for collaboration between industry and academic institutions. Doing so will help all these players to further innovate, expand and enhance on their journey.
Similarly, the government should also pay attention to attracting more foreign players to invest in R & D-led pharmaceutical companies and CDMOs. For example, hosting a trade fair to showcase India’s R & D capabilities / infrastructure available within industry and leading government agencies, along with India’s competent scientific community, will secure investment opportunities for Indian CDMOs. It’s a great way.
The last word
Indian pharmaceutical companies and CDMOs have achieved outstanding performance over the years, backed by world-class drug substance and formulation manufacturing capabilities. The sector will continue to evolve as new growth opportunities emerge and demand increases in the near future. But when it comes to making these players self-reliant, it certainly takes time to address the challenges mentioned above with an innovative approach and provide opportunities for collaboration within academia with Indian pharmaceutical companies.
(Disclaimer: The expressed views are solely by the author and ETHealthworld.com does not necessarily subscribe to them. ETHealthworld.com may directly or indirectly cause any damage to an individual / organization. We are not responsible for this).
How can an Indian pharmaceutical company manufacture Atmanirbhar in a true way? , Health News, ET HealthWorld
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