Indian Pharmaceutical Companies Making Inroads
into Japan
Hyderabad: After making
its presence felt in the US and Europe, Indian pharmaceutical
industry in now making deep inroads into Japan, the
third largest pharma market in the world.
The growing interest in Japan for
Indian companies has been evident for the last one year
as Japan has been liberalising norms pertaining to foreign
companies reeling under the burden of heavy healthcare
costs, Dr P.V. Appaji, Executive Director, Pharmaceutical
Export Promotion Council (Pharmexcil), told Business
Line here.
“Japan-directed trade from India
increased after the Japanese Government relaxed norms
making a tie-up with Japanese firm not mandatory . The
cost-advantage and credibility is also favouring Indian
exports,” he said.
In 2006-07, the pharma exports to
Japan stood at $74.5 million. “But during the last
one year, there has been great interest in Indian formulations
or Active Pharmaceutical Ingredients (APIs) from Japan,”
he said.
Though the exact export value for
the last financial year is yet to be tabulated by the
council, industry sources estimate that the growth could
be between 10-15 per cent.
“Japan is an important traditional
market. If it is opening up, it could be a major development
for formulations business,” Mr M. Narayana Reddy,
President, Bulk Drug Manufacturers Association (BDMA)
of India, said.
The Chairman and Managing Director
of Hetero Drugs Ltd, Dr B.P.S. Reddy, said “The
Japanese market would offer good space to Indian pharma
companies but the margins might not be very attractive.”
Generic product growth
The generics products, which will
find its way into the Japanese market, are expected
to grow from 10 per cent to about 30-35 per cent, he
felt. Hetero Drugs already has a couple of registrations
in Japan.
The Managing Director of Glochem Industries,
Mr K. Subba Rao, said the penetration of generics products
is very low and is set to grow rapidly as the Japanese
market can be lucrative in the beginning. Glochem got
regulatory approval for Amlodipine Besilate (of which
the company is the world’s largest producer) in
Japan in March 2008.
Source:
The Hindu Business Line Date: April 15, 2008
