What are the opportunities provided by loans
Many of the Indian pharmaceutical firms started very late (in the nineties). These were started by individuals who had earlier worked with MNEs and had technical expertise. These entrepreneurs took advantage of the opportunities provided by the inadequate patent laws of their domestic countries and started off by making slight process modifi cations which gave the same end product. Once the entrepreneurs established a foothold for themselves in the domestic market, they started sensing opportunities in the foreign markets. However, since they could not sell the copied medicines, they took up manufacturing of those molecules that had gone off patent. Due to the cheap technical manpower, these firms could sell these bulk drugs to other developed countries as well as developing countries at a fraction of the prices charged by the big MNEs.
Further, to upgrade their technical capabilities, they took up the jobs of contract manufacturing for big MNEs. This provided them with a platform to start their own in-house research and development activities. Presently, many of such pharmaceutical firms have quite a noticeable presence not only in the developing markets but also the markets of the US and Europe. Dr Reddy’s, one such Indian fi rm, is even planning to shift its headquarters to the US to stay closer to its future market!
Comments are currently closed.