Meeting the Challenge of Growth and Profitability

Abstract

The global increase in the cost of health has become an enormous issue, and one that is set to continue as a consequence of the ageing population. Pressure mounts within the big pharmaceutical companies, where there is an increasingly sharp focus on the productivity and efficiency of R&D operations. By contrast, we are seeing an almost global expansion of the generics pharmaceutical sector, a trend that is forecast to continue. Without generics, the pharmaceutical component of healthcare budgets would increase substantially, and this, in turn, would bring about further increments in the overall cost of healthcare. Whereas many people regard the generics and branded patented medicines industries as competitors, in fact they sit synergistically together. Against this background, a pharmaceutical company based in India has real potential to meet the challenge of growth and profitability on a global scale. India not only has a long and successful history in generics but also possesses many inherent competitive advantages, a key one being the low cost of innovation, for succeeding in the area of drug discovery. If the current productivity seen in India can continue with a conscience, and be expanded through optimal and cohesive communication with key customers in the Western world, this will lead to significant shareholder wealth and benefit to patients.