| As Patents Act comes into force, the pharma sector is likely to get into the M&A mode with a few companies based in the Maharastra-Gujarat region leading the way, said T C Venkat Subramanian, chairman and managing director of Export-Import Bank of India (Exim Bank) here on Saturday. |
| Without naming any companies, he said they are Indian multinationals who are looking at filling the gap in products, technology and research. These companies are in its various stages of talks and are likely to be completed in less than three months. |
| "The Exim Bank is keenly watching the scenario and is likely to take a call or pursue co-investing path or fund the cost of acquisition," revealed Venkat Subramanian. |
| Exim Bank has about Rs 1,200 crore, roughly 9 per cent of bank's total disbursal, exposure to the Indian pharma sector. Indian companies have realised the value of R&D and are actively looking at public-private partnerships with many central institutes. |
| "From a small unit or division in a company, it has grown in importance to become profit centre and are actively looking at partnerships," he said. |
| "With R&D gaining importance, annual spend on R&D has touched 10 per cent of the turnover as compared to a meagre 2-3 per cent some years ago," he added. |
| Talking about the pharmaceutical sector, he said the Indian industry for the last 20 years has been growing at a CAGR of 13.5 per cent whereas globally it has been growing only at 9 per cent. |
| Indian companies have taken the lead in filing Drug Master Files (DMFs) and abbreviated new drug applications (ANDAs), India's share of DMFs filing is 30 per cent and ANDAs 33 per cent. |
| In 2004, 100 DMFs and 161 ANDAs were filed by Indian companies as compared to 73 ANDAs filed in 2003. |
| Indian companies stand to gain if they pursue R&D in tropical and global diseases like HIV, TB and malaria, for the companies in the West are not looking at it, said Venkat Subramanian. |
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