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Many foreign drug manufacturers may close down in India soon, this is the reason


Foreign Pharmaceutical companies are on the verge of closure: Swiss pharma company 'Novartis' has made a special announcement on 16th February. Some things are listed under this advertisement. A strategic review of Novartis India Limited has been initiated. Based on which it can stop the production of drugs in India. In which its share in the subsidiary company is being evaluated. Just three months ago, UK major AstraZeneca also announced that it may stop drug manufacturing in India based on the Global Strategic Review.

Companies reduced manpower and operations

Pharma companies such as Pfizer, Sanofi, AstraZeneca and GSK have cut manpower and operations in key functions such as manufacturing, sales and marketing over the past few years. Some of these companies have a legacy of over 100 years. So these companies were longing for the lead in India some time ago and why are they closing down now?

Increasing competition and patents

India is a market of more than 2 lakh crores. Among them are some of the most serious health challenges, but increasing competition and high operating costs have forced multinational companies to rethink their strategies. From the earlier strategy of manufacturing in India, they have shifted to licensing and marketing agreements. Over the years, Novartis, Roche, Eli Lilly and Pfizer have partnered with local companies such as Torrent, Lupine, Cipla and Glenmark for treatments.

May also impose compulsory licensing

Some multinational companies are concerned about India's intellectual property regime due to disincentives to perpetuate patents. It also allows another party to manufacture the drug without the patent owner's consent. Without exiting the country entirely, they are reducing risk by trimming portfolios and avoiding new investments. Compulsory licensing can also be imposed to prevent all this.

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