Subject category:
Economics, Politics and Business Environment
Published by:
Amity Research Centers
Length: 9 pages
Data source: Published sources
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Abstract
As some pharma giants came forth to lead the way to take the generics industry forward, governments in countries like India came forward to fortify the industry with some disruptive support. But there had been apprehensions too as the erstwhile generics market formed only a tenth of the market for domestic pharmaceutical formulations, and the bulk of pharma market consisted of sale of branded medicines. To remain afloat in a competitive generics landscape with many rivals, some Indian companies thought of widening the pipeline. The industry could get an added impetus in early 2017, when the government wished to move a law which could ensure that doctors would prescribe medicines only by their generic names. The proposal generated outcry both in the media and the pharma industry. But such push for the generics was claimed to make economic sense besides social benefits enabling patients to buy medicines at cheaper prices. Promotion of generic drug consumption was hoped to safeguard the health of the country's generic drug manufacturing industry, which was among the biggest suppliers of low-cost medicines worldwide. While generic manufacturers would retain an advantage at least in the domestic market because of a generics-only policy, big Pharma would also require its access to Indian consumers to be routed through channels like voluntary licensing used by generic companies. Still, there could be a challenge concerning supply side as India was an import driven country for 'active pharmaceutical ingredients'. Allegations concerning substandard quality of generic medicines were also apprehended to compound the challenges. Under such circumstance, could the generics industry in India optimise the government's generics only policy by surmounting all the challenges?
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Abstract
As some pharma giants came forth to lead the way to take the generics industry forward, governments in countries like India came forward to fortify the industry with some disruptive support. But there had been apprehensions too as the erstwhile generics market formed only a tenth of the market for domestic pharmaceutical formulations, and the bulk of pharma market consisted of sale of branded medicines. To remain afloat in a competitive generics landscape with many rivals, some Indian companies thought of widening the pipeline. The industry could get an added impetus in early 2017, when the government wished to move a law which could ensure that doctors would prescribe medicines only by their generic names. The proposal generated outcry both in the media and the pharma industry. But such push for the generics was claimed to make economic sense besides social benefits enabling patients to buy medicines at cheaper prices. Promotion of generic drug consumption was hoped to safeguard the health of the country's generic drug manufacturing industry, which was among the biggest suppliers of low-cost medicines worldwide. While generic manufacturers would retain an advantage at least in the domestic market because of a generics-only policy, big Pharma would also require its access to Indian consumers to be routed through channels like voluntary licensing used by generic companies. Still, there could be a challenge concerning supply side as India was an import driven country for 'active pharmaceutical ingredients'. Allegations concerning substandard quality of generic medicines were also apprehended to compound the challenges. Under such circumstance, could the generics industry in India optimise the government's generics only policy by surmounting all the challenges?