Indian pharma service exports to outdo product exports by 2010

India is an emerging hub for collaborative and out-sourced r&d and other services for global pharmaceutical companies, and it has now been predicted that by 2010 exports of these services will overtake product exports.

Fuelled by the global ambitions of domestic players and by the renewed interest of multinational companies in making India their base for innovation-led cost competitiveness, Indian pharma service ex-ports grew by more than 40% during 2003 ($285m), while product exports rose by only 11-12% ($2.8bn).

The growth in inward investment also accelerated last year, with multinationals like Roche, Bayer, Aventis and Chiron deciding to make India their regional hub for APIs and bulk supplies. This is attributable to the 30-50% cost saving opportunity as India can combine lower cost manufacturing with adequate regulatory protection of intellectual property.

Also, there is a fundamental shift in Indian companies' approach from business-driven research to an increasing focus on research-driven business. In the changing landscape, Indian companies are adopting a combination of alternative business models to optimise competition and opportunity.