Pharma MNCs to focus on pricing in volume push

Multinational companies that are currently focusing on the Indian pharmaceutical market in a big way may adopt a differential pricing strategy to attract higher volumes of business.

The prices of patented drugs, to be introduced by these companies in India, may not be on a par with international prices, said Harvey E Bale, director general, International Federation of Pharmaceutical Manufacturers & Associations (IFPMA).

"Several global pharma companies like Bristol Mayor Squibb Company, Roche, GSK, Johnson & Johnson, Merck & Company, etc. are readying themselves to tap the market. Though the marketing strategies of each company will vary from each other, none of them would be thinking of an option other than differential pricing to explore the healthcare market in the country," he said.

This means that there is no need of concern about drug prices skyrocketing in the post WTO regime.

However, expanding the Indian market "" which is currently just one per cent of the world pharmaceutical market "" will be a difficult task for both global and domestic companies unless the health infrastructure and medical schemes are strengthened in the country, Bale added.

Apart from the market potential, the country's brain power and the outsourcing process would be other two areas that the multinational companies have been eyeing in India, he said.

The IFPMA director general is in the city to address an IPR Seminar in the city organised by Healthcare & Industry Information Centre.

On concerns about the very survival of the domestic pharma sector which is not in a position to take a call on the IPR portfolio, Gale said a few Indian majors led by Ranbaxy, Cipla, Wockhardt and Dr Reddy's have already proved that they can grow big in the global generic and branded generic market.

In addition, the in-licensing of novel technologies from the developed world is the other option to play in the branded business.

Similarly, the Indian biotechnology companies have shown tremendous capabilities in the area of new biopharmaceuticals research. "Out-licensing these capabilities would be another big revenue option for Indian companies in future, he added.