Pharmaceutical sector leaders have said that India’s intellectual property regulations and liabilities laws pose a major barrier to foreign companies, specially from the US, that prevents them from increasing their footprint in the country’s huge market.
In a recent article the Business Standard news website reported that, Andrew Plump, chief medical and scientific officer of Takeda Pharmaceuticals, a major Japanese drugmaker, said his company has a very limited presence in India, “But it is open to increase its footprint in India, with the improvement in IP protection laws and those related to liabilities.”
It also reported that “I think more and more there’s an intent in India to try to open up its doors. I think if that happens, and if it facilitates entry of innovative patent protected pharmaceuticals you will see value driven companies coming into India,” Plump told PTI on the sidelines of the 12th annual biopharma and healthcare summit.
“Historically it (IP sector regulations and liabilities law) has been not just a hindrance but a barrier and impediment (for the US pharma companies to invest in India),” Plump said.
According to the India Brand Equity Foundation, Indian pharmaceutical sector is estimated to account for 3.1 – 3.6 per cent of the global pharmaceutical industry in value terms and 10 per cent in volume terms. It is expected to grow to US$100 billion by 2025.
According to the Pharmaceuticals Export Promotion Council of India (PHARMEXCIL) India’s pharmaceutical exports stood at US$ 16.8 billion in 2016-17 and are expected to grow by 30 per cent over the next three years to reach US$ 20 billion by 2020.