Pharma sector to see consolidation

The Indian pharmaceutical industry is likely to witness a shake-out with mergers, acquisitions and closures in the months to come in order to cope with the challenges of the new product patent regime from the year 2005, according to R A Mashelkar, the director- general of CSIR and secretary, Department of Scientific and Industrial Research (DSIR), Government of India.

Disputing the WHO figure of 20,000 pharma companies in the country, he said a study by the government placed the number at 5,700. Even this number is quite huge and there would be rationalisation of the numbers, he observed.

Mashelkar was inaugurating the two-day Pharmacophore 2004, an international symposium on 'Innovating Drugs: Emerging Perspectives,' being organised by Dr Reddy's Research Foundation to mark 10 years of drug discovery research.

Apart from the restructuring of the industry, there would be put in place a world class regulatory mechanism to ensure adherence to international standards and by the industry, Mashelkar said, while mentioning the government's initiatives to further the development of the sector.

The CSIR director-general also informed that great developments were in the offing on the front of research in the traditional medicinal systems of the country.

CSIR had embarked on a major exercise, involving 20 of its member laboratories and around 20 universities across the country to engage research in the traditional medicine.

Mashelkar also pointed to the 'brain gain' phenomenon with a large number of Indian professionals coming back from foreign shores to contribute to the nation's development.