Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.The European Union's (EU) new need for cost reduction seems to be a prime mover of business for Indian pharmaceutical companies that are operational in Contract Research And Manufacturing Services (CRAMS) space. The Indian companies, on their part, are not leaving any stone unturned to cash in on the opportunity.
Subscribe to our email newsletter
According to pharma industry experts, outsourcing research and manufacturing of pharma products helps global pharma majors to reduce costs by almost 30-50%, due to the availability of talent at low cost in countries like China and India.
Several small players like metformin maker Wanbury, are expecting to leverage on the opportunities provided by CRAMS and thereby increase their revenues over the next two years – as quoted in dnaindia.com.
Similarly, Mumbai-based Indoco Remedies, a relatively small player in the $1.7 billion CRAMS space in the country, is looking at business opportunities in markets such as Spain, Slovenia and Turkey. Last year, about 80% of Indoco’s international business came from EU, with CRAMS contributing in a big way. In fact, its business went up by 34%, thanks to CRAMS.
VVS Murthy, CFO of Ahmedabad based Dishman Pharmaceuticals and Chemicals, said that the European market, with giants like Roche, Novartis, Sanofi Aventis, etc, are outsourcing more and more to countries like India. “About 50% of our turnover, which is nearly Rs 1,000 crore, comes from Europe. We get good margins for CRAMS there, as much as 25%,” he added.