Japan aims to persuade Indian pharma firms to set up ventures in the country
To help meet growing demand for high-quality and inexpensive generic medicines
With a healthy foreign direct investment (FDI) target of around US$300bn by 2020, the Japanese External Trade Organisation (JETRO), is intent on wooing Indian drug companies to set up shop in Japan. The aim is also to maximise research and innovation and advance the Asian nation's manufacturing infrastructure.
The Japanese government has also invited Indian drug majors to set up ventures in Japan to meet growing demand for high quality and inexpensive generic medicines.
Explaining the need for generic drugs in Japan, an official said that the country has an ageing society with fewer children. 'The percentage of population aged 65 and older is higher than other developed countries. Therefore, medical expenses are on the increase every year due to a rise in the number of elderly people aged 75 years and older, with high consultation rates for chronic diseases, high disease rates, and high nursing care utilisation rate,' he said.
Both nations are keen to ensure that the agreement to promote FDI from India to Japan goes ahead
Japan has also amended its Pharmaceutical Affairs Act, which is set to encourage Indian firms as it has improved the approval process for medicines and medical devices in the country.
JETRO has also sent sectoral experts to India and has set up an India desk in Tokyo to promote investments and accelerate FDI.
Both nations are keen to ensure that the agreement to promote FDI from India to Japan, inked between Indian Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe at New Delhi in December 2015, goes ahead.
JETRO was also in Bengaluru recently in connection with an Invest in Japan summit. Japan has established several laws to strengthen intellectual property protection, and Indian drug majors can now look at entering East Asia, officials said.
Japan has the necessary infrastructure, connectivity, and a favourable business environment for the Indian pharmaceutical industry to profit from in the days ahead, the official added.
Japan also has research funding and the country comes top in this space accounting for $1.64bn, which is 3.67% of the GDP. Indian pharma companies with a presence in Japan include Lupin, Dishman, Aurobindo, Dr Reddy’s, Mylan and Micro Labs.
Major Japanese pharma companies in India include Medreich Meiji, Takeda Pharmaceutical, Eisai Pharma, Santen Pharma and Rohto Pharma.