Pfizer plans expanding generic business in India

Pfizer Ltd, the Indian subsidiary of the world’s top drug maker, will more launch generic drugs in India soon.

Pfizer India limited plans to introduce atleast 2-3 generic drugs by the end of the year as part of its global strategy  to widen its portfolio and market share in India –one of the fast-growing generic markets in the world.

Pfizer, which is the largest research-based company and a leading promoters of patented medicines all over the world, makes a major departure from its traditional business pattern by jumping into the generics business strategy, to boost its sagging sales.

Pfizer India already launched anti-hypertensive telmisartan last month, indicating ageneric foray into the highly competitive Indian generic market.

“We wanted to re-look at our portfolio. We wanted to enlarge our portfolio… We are launching this as a part of our increasing  as part of its global product portfolio and market expansion strategy,” Keval Handa, Pfizer India’s chief executive officer was quoted as saying.

Pfizer’s India would also outsource the manufacturing of the prospective generic products to be launched in India to cut the overall production costs.

In May, Pfizer Inc had cut deals with Indian generic makers Aurobindo and Claris Life Sciences in an effort to make a solid foot-hold in the fast-growing generic markets worldwide.

Pfizer acquired rights to 55 generic pills and 20 injectables for more than 70 emerging and developed markets through these two deals.

Pfizer has expanded the existing collaboration with the Hyderabad, South India-based Aurobindo Pharma Ltd reached earlier this year to sell 60 off-patent drugs. Meanwhile Pfizer’s agreement with Claris Lifesciences Ltd is to market 15 off-patent injectable drugs.

Recently, Pfizer has revised its open offer price for shares of its Indian subsidiary Pfizer India by almost 23% from Rs 675 to Rs 830 per share, adding another 150 crore to the offer.

Pfizer is trying to raise its stake from 41.23% to 75% in Pfizer India through an offer to gain a better control on its Indian business arm, which represents an emerging market.

Pfizer India Limited registered a turnover of US$ 172 million (November 2006). Pfizer has made clinical research investments of US $ 15.75 million in India.

Pfizer introduced over half a dozen patented medicines in India since 2005 including Vfend, Viagra, Lyrica, Caduet and Macugen. Several of Pfizer’s products feature among the top-100 pharmaceutical brands in India. Corex (cough formulation) and Becosules (multivitamin), continue to be the leading  brands amongst all pharmaceutical drugs produced in India.

Pfizer launched its kidney cancer drug Sutent (sunitinib mesylate) in India in January.

Pfizer was granted a patent for Sutent in India in 2007. Sutent costs around Rs1.96 lakh for a 45-day treatment in India.

Hyderabad based generic maker Natco had in January applied to the patent controller of India to allow the company to manufacture and export sunitinib mesylate to Nepal.

Last year, Pfizer launched anti-smoking drug Champix in India. Till date, Champix had global sales of around $1 billion. The complete package of the drug will cover a 12-week treatment program and will be priced somewhere around Rs 9,500.

Pfizer has previously reported its interest in emerging markets like India, China, and Korea. The company has also expressed interest in generating a stronger hold in the generic pharmaceuticals market and is likely to use its India operations as a base.

Pfizer has been known to spend more than $7 billion a year in pharmaceutical research & development alone.