Local pharma sector integrating into global value chain: E&Y

Indian pharmaceutical industry is emerging as an integral part of the global value chain as large global companies continue to increase their sourcing base in the country.

The pharma outsourcing from Indian companies comprises of active pharma ingredients (APIs), clinical development services and research partnerships for new product development, according to an Ernst & Young report published today.

Titled Global Pharmaceutical Report 2005, it said the country will have a larger impact on global pharmaceuticals industry's tax, regulatory and IT environment issues much beyond its innovation and manufacturing.

The ongoing global collaborations in the industry provide the opportunity for Indian pharma to tap into the world's pharma research network to gain access to new technologies while providing a platform to leverage the scientific talent available in India, the report added.

Along with this, the domestic companies are taking unprecedented actions to regain the public's trust by engaging in an open dialogue around drug safety issues and drug promotional objectives while renewing their focus on demonstrating value through medicines.

The report identifies three key drivers of change in the pharmaceutical sector such as integrity, transparency and value.

The integrity due to increasing regulatory complexity and scrutiny, which requires companies to demonstrate the integrity of their operations to all stakeholders and transparency following demands for greater disclosure of financial and non-financial data present new risks and opportunities.

While , the value is with need for pharmaceutical companies to take proactive measures to demonstrate the value of their operations and their products.

The report provides diverse perspectives of industry luminaries from business, academia, government, and the clinical fields and intends to benefit the global pharma industry with enhanced dialogue between the different stakeholders.

Featuring a compilation of more than 40 articles by thought leaders from around the globe, the report provides insights into diverse topics such as curbing drug counterfeiting, managing offshoring risks, impact of global indirect taxes and SOX Section 404, issues in drug safety, authorised generics and the growing demand for evidence-based medicines, among others.