Strategic Value-Chain Analysis of Indian Pharmaceutical Alliances

Strategic Value-chain Analysis of Indian Pharmaceutical Alliances

Submitted By:

Gaurav Raizada ([email protected])

Atul Pall ([email protected])

Indian Institute of Management, Lucknow Prabandh Nagar, Off Sitapur Road, Lucknow226013

Abstract A number of firms around the world have been using strategic alliances to become more competitive globally. The reasons attributed to such alliances vary from economies of scale, increased revenue, cross selling, synergy, tax write-offs, diversification and resource transfers among others. After the liberalization of Indian economy in 1991, Indian companies have used these strategic alliances to expand into other markets and prepare for increased competition at home. But after joining the World Trade Organization in 1995, India had to change its patent laws by 1 January 2005 to meet its commitments under the WTO's agreement on Trade Related Intellectual Property Rights (TRIPS). In the post-2005 scenario, the pharmaceutical industry has undergone a significant change due to the TRIPS agreement. Though a number of reasons are attributed to these strategic alliances in literature, there is no particular pattern that can be observed in these alliances. This study aims at analyzing the Indian Pharmaceutical Industry and the strategic alliances in the recent past and what drives these alliances. A value chain framework has been proposed that analyses the critical capabilities needed along the value chain in the Pharmaceutical Industry, the existing capabilities of the firms and how these alliances are supposed to bridge the capability gap.

Introduction In the last few years, strategic alliances have gained a lot of significance as a means of competing in the dynamic environment. Strategic alliances are tools used by firms to increasingly leverage their core competencies to establish a greater business impact. The benefits of these alliances are multifold, ranging from capitalizing on core com petencies, increasing firm ’s m arket pow er, sharing the infrastructure, balancing the financial resources, maintaining growth and diversifying the risk. Though there are a multitude of reasons that might be motivators behind a strategic alliance, the question that arises is which factors dominate the emergence of strategic alliances between firms. It is obvious that motives for forming alliances vary from case to case. In fact, the participants may enter alliances for different reasons. The reasons for partners may vary in due course of time as alliances pass from one stage to another. Building on these hypotheses, one can argue that variations rather than similarities dominate the reasons for forming strategic alliances. But among these variations, can there be some pattern in the alliances that are formed due to industry structure. Putting simple, do industry structures and contexts drive a certain kind of alliances, is there a pattern? The objective of this study is to analyze how certain forms of alliances might be more prevalent in a certain industry structure or context and develop a framework whereby one can map a certain alliance structure onto the dynamics of the industry. We accomplish this by studying Indian Pharmaceutical Industry where we look exclusively at alliances between Indian companies and foreign counterpart. The next section looks at strategic alliances in general and in context of this study. A literature review is done to find some common ground in theory on this subject. The third section talks about the analysis of the Pharmaceutical Industry and introduces the value chain framework. We conclude in the next section by summarizing the key takeaways of this study and looking at further work that can be done in this area.

Strategic Alliances Inter-organizational co-operation is spurred by the increased recognition of the fact that no firm or organization has all the “capabilities”, e.g. resources and activities, needed for it to achieve its goals or objectives in the m arketplace in today’s dynam ic and heterogeneous global market. Strategic Alliances is one class of widespread cooperative strategy that has gained a lot of visibility in last few decades. According to Miller strategic alliances refer to arrangements in which corporations join forces to form corporate partnerships creating a separate co-owned commercial entity. Thus an strategic alliance is a mutually beneficial relationship formed between two or more corporate firms to pursue a set of common goals or to meet specific business needs. It is an arrangement wherein organizations agree to co-operate with each other in a business area, each bringing different strengths and capabilities to the alliance. These are collaborative organizational arrangements that use resources and/or governance structures from more than one existing organization (Handbook of strategic management, hit et al, 2001). There are three important characteristics of any strategic alliance – Firstly, the parent firms should remain independent subsequent to the formation of the alliance. Secondly, the arrangement possess the feature of ongoing mutual interdependence, in which one party is vulnerable to the other (Parkhe, 1993). Finally, because of the independent partners, an element of uncertainty exists as to the motives and actions of the other party (Powell, 1996). Thus various ways that strategic alliances have been defined may be different, with each definition concentrating on some particular characteristics of the phenomenon, yet there is some common denominator to which the above definitions can be reduced. In all the definitions, one realizes that firms are trying to develop some kind of exchange relationships with some significant others as a means to gain access to activities or resources that they lack. The exchange relationship with the external actors are a necessity for most firms since they provide access to complementary resources and activities that may have an impact on theory output/success in the marketplace. By forming strategic alliances, the partners pool their resources and strengths together in order to achieve their respective goals, a possibility of success that maybe impossible for each to achieve if they were to do it alone. Thus, the parties leverage their core capabilities by complementing each other in many ways.

Drivers of Strategic Alliances As is evident from many definitions, there are many benefits of a strategic alliance that drive various firms to enter into such cooperative arrangements. Strategic Alliances allow firms to spread costs and/or risks. Most firms are seeking ways to create more value for their stakeholders so that they may perceive them as unique and that may

translate into the stakeholders preferring to be loyal to them as with another firm. However, the costs of developing new products and/or new ways of offering complex solutions to problem s facing the custom ers in today’s dynam ic m arkets m ay not be only be very high for a single selling firm to bear, the risks of failure of bringing innovative products and/or solutions are reported to be very high. Since the cost and range of technologies needed to operate in the market are high, firms are increasingly establishing exchange relationships with some other players as a means to complement each other. Firms can even go into alliances in order to block or co-opt competitors. Learning can be one of the main goals of forming the strategic alliances, though it can be formal or informal. When two parties are engaged in a strategic alliance, the aim of one the party or both can be to gain experience and to learn skills of the other partner and utilize what is learnt and the acquired experience in future operations. Other motives for strategic alliance can be overcoming the structural barriers in the industry. These may include legal barriers and market development. Barney2

identifies the following eight drivers that make firms enter into a strategic alliance of any kind:

o Exploiting economies of scale

o Learning from competitors

o Managing risks and sharing costs

o Low cost entry into new markets

o Low cost entry into new industries and new industry segments

o Low cost exit from industries and industry segments

o Managing uncertainty

o Facilitating tacit collusion

Together, the above eight reasons seem to cover all the various motivations that might drive a form into a strategic alliance.

Types of Strategic Alliances The literature abounds with different types of strategic alliances that can be formed or that exits amongst firms. Barney groups the strategic alliances into three broad categories: non-equity alliances, equity alliances and joint ventures. In a non-equity alliances, the cooperating firms agree to work together to develop, manufacture or sell products and services, but they do not take equity positions in each other or form independent organizational unit to manage their cooperative efforts. Rather, these cooperative relations are managed through various forms of contracts – licensing agreements (where one firm allows others to us its brand name to sell products), supply agreements (where one firm agrees to supply others) and distribution agreements

(where one firm agrees to distribute the product of others). In an equity alliance, cooperating firms supplement contracts with equity holdings in alliance partners. In a joint venture, cooperating firms create a legally independent entity in which they invest and from which they share any profits that are created. For the purpose of the study, the strategic alliances are divided into the following types: Co-marketing Co-marketing alliances act as engines for growth in markets where it is not possible to invest capital resources easily. They help in overcoming the need to establish a strong brand by utilizing local firms that already enjoy significant brand equity. They also help in diversifying the risk associated with stagnant domestic markets. Preferred Supplier Relationship In several industries, the need to cut costs and improve quality at the same time has led to the formation of close relationships with selected suppliers. This allows for better quality control and improves the product function pf the firms, particularly in manufacturing sector. The availability of information technology solutions that help in better management of the supply chain has helped in development of such preferred supplier relationships. Research & Development tie-ups Another area where focus on getting better returns is becoming important is R&D. With increasing globalization, it is now possible for firms to tap superior R&D capabilities across the world through alliances rather than investing in their own R&D. Strategic Equity Investments In some industries, strategic equity investments in related businesses across the world help firms to get better returns for their capital when not many opportunities for growth are present. Joint Ventures Firms use joint ventures in order to enter new markets or product areas where they can create greater value by leveraging the combination of their core competencies, rather than going alone. They create a separate legal firm wherein both the partners invest and share the profits of any. Thus, the risk sharing is of a higher order in this form of alliance and in that sense it is also the most evolved form of a strategic alliance where both (or more) partners work very closely with each other. The above mentioned types of alliances can be classified along the dimensions of criticality and complexity in managing the alliance as follows:

International Strategic Alliances – The Indian Context Some firms seek to have a global presence and/or expand their markets. Strategic alliances m ay facilitate penetration into other m arkets, because a “going-alone” strategy may not only be expensive, but also a foreign firm may lack the local knowledge (social, cultural, politico-legal, economic environment) necessary to understand and to conduct effective business in foreign markets. International strategic alliances are a rapidly growing organizational form attesting to the growing importance of conducting business across institutional and national borders. The dramatic growth of international joint ventures between firms is fundamentally reshaping the nature of international business. As market complexity is growing, inter-firm collaboration has become such a crucial component of the pursuit of international competitive advantage. Such international collaborative arrangements are very complex to manage successfully, partly because of the difficulty of matching the goals and aspirations of autonomous organizations, headquartered in two or more countries. Sometimes it seems as if good intentions and rational motives behind these alliances are not congruent with the strategic direction of either firm on its own, let alone the strategic direction of both in unison. Yet, in the host country pressures or barriers such as politico-legal, cultural, social factors to entering a foreign market become a problem, alliances with domestic actors may facilitate market entry and/or operations. The last decade has seen a decidedly significant change in the business environment in India. These changes can be attributed to the gradual and cautious opening up of the Indian economy with the concomitant dismantling of the License Raj, which prevailed earlier. At the same time, globalization has been driven by the acceptance of capitalism as the dominant economic model the world over since the collapse of USSR. Thus, India’s liberalization is coupled w ith the grow ing forces of globalization across the w orld. However, the worldwide economic downturn of the early part of this decade had queered the pitch for firms that were reckless in expanding. The search now is on for sustained growth in markets that offer great growth potential. India and China are clearly the countries that offer this growth proposition due to their liberalizing economies and untapped population. On the other hand, Indian firms now realize the need to com pete w ith pow erful M NC’s. The best run Indian firms see the opportunity to expand beyond the domestic market and offer value to customers worldwide by taking advantage of the capabilities that they possess. These twin needs of competing in India with MNCs and of expanding in foreign markets necessitate the use of new effective strategies. Forging strategic alliances is one such powerful tool that Indian firms can employ to meet the above objectives. Alliances are a quicker and less capital-intensive way to gain access to products, customers and business capabilities than building them from scratch. Instead of re-inventing the wheel, Indian firms can use strategic alliances to catch up with the best in the world. This is exactly what many firms in Pharmaceutical industry are doing to establish a global presence for themselves.

Value chain Framework for Strategic Alliances In this study, we propose a Value Chain framework for understanding strategic alliances in the Pharmaceutical Industry. We analyze the pharmaceutical industry and build the value chain framework through the analysis. The data for analysis has been collected through various company websites and online newspapers. The methodology for collecting data was to identify the top ten firms in the industry and then identify the alliances entered by them through the information on the websites. After an exhaustive search, more information was gathered from online newspapers and magazines. The secondary sources used are mentioned in the reference section of the study.

Indian Pharmaceutical Industry The Indian Pharmaceuticals sector has come a long way, being almost non-existing during 1970, to a prominent provider of health care products, meeting almost 95% of country’s pharm aceutical needs. The dom estic pharm aceutical output has increased at a compound growth rate (CAGR) of 13.7% per annum. Currently the Indian pharmaceutical industry is valued at approximately $ 8.0 billion. Globally, the Indian industry ranks 4th in terms of volume and 13th in terms of value. The low share can be attributable to two reasons:

The relatively lower prices of the drugs in India The profile of drug usage is towards low end drugs (compared to other parts of

the world)

Industry Structure The structure of the Indian Pharmaceutical Industry is characterized by fragmentation, with over 20,000 players – a large number of them in the small scale sector, only 260 in the organized sector. As a result, no individual market share in Indian retail formulations market exceeds 7%. However a trend of consolidation is visible at the top. In 2001, the top five players accounted for 22% while in 2006, they account for 28% of the market share. Also the top ten in 2001 accounted for 36%, and in 2006 they accounted for 42%. The pharmaceutical industry can be divided on the basis of form and therapeutic application. On the basis of form, the industry can be divided into bulk drugs and formulations, while on the basis of application, it can be divided into various therapeutic segments. Formulations occupy most of the market share. The anti-infective segment remains the largest in the Indian retail formulations market at around 25%.

Regulatory Environment The pharmaceutical industry is highly regulated globally. The regulations governing the various aspects of the pharmaceutical industry can be clubbed under the following three heads:

Patent regulations – the Intellectual Property Right (IPR) protection provided to pharmaceutical products in a country has a bearing on the structure of the pharmaceutical industry and the nature of competition. The main legislation is the Indian Patents Act, 1970 and TRIPS agreement which has fundamentally changed the nature of competition in the industry.

Price regulations – The government of India introduced a price regulatory policy, Drug Price Control Order (DPCO) in 1970 with objective of protecting the interests of consumers. Under DPCO, 74 bulk drugs and formulations thereof are under price control.

Product and Quality Regulations – The Drugs and Cosmetics Act 1940, governs the import, manufacture, distribution and sale of drugs in India. The Drug Controller General of India (DCGI), an authority established under the Drugs and Cosmetics Act, oversees the conduct of clinical trials. Also responsible for approval and registration of drugs.

Competitive Forces Analysis The competitive forces in the Indian Pharmaceutical Industry can be analyzed as :

Threat from New Players – Low: The new product patents act as an entry barrier for companies which do not have access to portfolio of patented drugs. Moreover there is price based competition in quite a few segments which reduces industry’s attractiveness. Also a large number of small scale units overcrowd the market.

Market Strength of Suppliers – Low: The supplier industry is fragmented and they are relatively small in size. There is threat of low priced imports in many therapeutic segments. The supplier market is competitive and the competition is based on price.

Market Strength of Customers - Low: the market strength of end consumes is low as drug choice is mainly with the doctors. In certain segments, buyers are price sensitive and therapeutically equivalent substitutes are available. The customer strength is high in Over-the-counter (OTC) products.

Threat from substitutes – Low: the threat is low in the product patent regime. Though in niche areas, the number of products is low and hence competition is low. But threat is high in over-the-counter market.

Rivalry within the industry – High: Mergers/Acquisitions of units/brands are heading to concentration and multiple branding arrangements are gaining

popularity. The companies have a large number of brands in their portfolios; the marketing is aggressive and fight for market share keen. Differentiated products and price controls make it tough.

Key Success Factors The key success factors that emerge are as follows:

Expertise in R&D – After the TRIPS in 2005, most Indian companies have shifted towards innovative research and for discovery of NCEs and NDDs for existing drugs.

Manufacturing Competence – The increasing complexity of the chemical structures of drugs, has raised their cost of production, has prompted many pharmaceutical firms on improving manufacturing efficiency. The Indian companies compete in international arena on the basis of lower costs of production, access to quality raw material at competitive price and technological competence that has a bearing on the cost of production (bulk drugs). Cost containment through efficiencies in supply chain.

Nature of Product Portfolio – The product mix of the company i.e. presence in bulk drugs and/or formulations, has a bearing on its financial performance, as the dynamics of the two are different. The bulk drugs is essentially a commodity business that focuses on cost competitiveness. The formulations business on the other hand, is retail oriented where brand and marketing network are important. The therapeutic profile of the product portfolio can affect the financial performance of companies. This is because of the differences in the demand pattern in different therapeutic segments. Also realizations tend to be inversely proportional to molecule age. Thus the company’s ability to introduce new products quickly and the age of its product portfolio tends to have a significant impact on its prospects.

Marketing and Distribution Network – marketing and distribution network forms an important success factor for a formulations player. Successful product launches have helped companies generate significant sales from certain pharmaceutical products. Brand building is another area of critical importance, especially for OTC products. Aggressive marketing helps in generating repeat sales. Access to a well diversified distribution network is critical, given the vast geographic expanse of the country. An extensive distribution network gives improved penetration and has helped quite a few formulators increase their turnover.

Strategic Alliances by Indian Firms The competitive pressures and the evolution of the Indian Pharmaceutical industry have encouraged many Indian players to explore global markets for their products. Firstly

many of them have reached capability levels that they believe can be leveraged internationally. Secondly with the product patent regime, it is clear that competition from M NC’s has becom e stronger in dom estic m arkets. So they must look for newer markets to maintain profits and growth. The various opportunities facing Indian firms can be summarized as:

Supplying to generics market of developed countries. Contract manufacturing for global majors Entering developing markets in South Asia and Latin America. Developing new drugs Manufacturing advanced intermediates and active pharmaceutical ingredients

for global majors In their efforts to reach global markets, Indian firms have entered into International Strategic alliances with various pharmaceutical companies (See Appendix A and Appendix B).

Value Chain Framework The key success factors of the industry show that a firm needs to be strong in each of the elements of the value chain to be a truly successful player. This is the reason we find that world over, all pharmaceutical players are integrated. Now to analyze the forces driving the kind of strategic alliances Indian firms are entering internationally, we try and map the competencies of the Indian firms against the value chain and look for possible gaps.

Due to poor research and development, they have been able to develop new products. Thus, they need strategic alliances with firms that have expertise in these areas. Secondly when entering new geographic market, firms face entry barriers in terms of sales and distribution network. Pharmaceutical products require extensive sales penetration and relationship with doctors. It is difficult for a new player to build in a short time. Moreover, it requires considerable investment which is financially not feasible when Indian firms only have a few products abroad.

If we study the number of alliances mentioned, most (thirteen) of them are in market development and distribution alliances while four are for product development or research and development. Clearly, in their strategy to enter global markets, distribution alliances are forming the backbone of Indian firms.

Aimed at boosting its OTC sales thus complementing its growing generics business, DRL has entered into an exclusive 15 year long product development and marketing agreement with Leiner Health Products (American OTC manufacturer). The key elements of the arrangement include an exclusive marketing partnership with Leiner, an Rx-to-OTC product pipeline and the development of private label OTC products.

As an another example, in the alliance of Ranbaxy Fine Chemicals limited (RFCL), a wholly owned subsidiary of Ranbaxy Laboratories Limited with Mallinckrodt Baker Inc (MBI), RFCL will market MBI JT Baker and M allinckrodt’s range of scientific Laboratory products in Indian market. This will help leverage the technological and product development capabilities of MBI and marketing and distribution muscle of RFCL. The integration of capabilities of the two partners will create a sustainable competitive advantage to enhance business prospects for these products and maximize commercial value. Through his alliance, RFCL will be extending high purity products and services for pharmaceutical, biotechnology, chemicals, research and development, electronics, environmental and healthcare industries. Besides offering the complete range of 5000 products of JT Baker and Mallinckrodt brand, RFCl will also cater to wide range of HPLC and spectroscopy solvents, ultra trace analysis of impurities, certified reference materials, bioscience products, chromatography columns and reagents. So we find that in this kind of a marketing contract, while one partner gets an easier access to a new market, the other partner gets a more complete portfolio of products for itself. Wockhardt (India) has strategic alliances with leading pharmaceutical and biotech companies, including Astra Zeneca Cell Therapeutics, Aguettant and Eisai. The company also entered in strategic alliance with Ranbaxy for Enalapril and ranitidine in US. It has tie up arrangement with IVAX Pharmaceuticals Ltd, UK for marketing generic products. It has also strategic alliance with Eisai of Japan for marketing of methycobal. Eisai and GSK have signed a co-promotion agreement to market the Eisai flagship anti-ulcer Paritec in India. The company expects to launch new drugs over the next three years and Eisai's presence in India would be important for the com pany’s global plans. In this alliance, GSK's strong field-force was seen as one of the vital drivers behind the deal. Nicholas Piramal India Ltd (NPIL) entered into alliance with Canadian biotech company BioSyntech through private placement of common shares. The arrangement has also given NPIL exclusive rights for marketing, sales and distribution of current and future BioSyntech products in India, Pakistan, Sri Lanka, Bangladesh, Laos, Cambodia, Vietnam

and the Philippines. The partners have also agreed to also explore collaboration opportunities for R&D initiatives. Government Run Research Organizations in India have been building their industry alliances and collaborations for pure Research and development purposes (See Appendix C). The industrial houses in the Indian pharmaceutical sector have been more and more forthcoming in forging alliances with the drug research institutes like CDRI (Lucknow), IICT (Hyderabad) and CCMB (Hyderabad). So we can conclude that it is those critical success activities of the value chain of pharmaceuticals industry where Indian firms do not have the necessary capabilities to enter global markets that they look for strategic alliances. Most firms are currently focusing on their short term need of having quick access to these markets and entering into marketing and sales alliances. But a few firms are looking to build long term capabilities and entering into Research and Development Alliances.

Conclusion Strategic Alliances are increasingly becoming one of the most potent tools, firms are employing to become globally competitive. It remains an intriguing task to determine the patterns in various alliances being forged around the globe. This study tries to understand strategic alliance in the context of the industry they are taking place in. The analysis shows that industry structure and dynamics have a profound affect on the kind of alliances emerging in an industry. Though each alliance is different in its own unique way, yet there is a broad but definite pattern in the alliances of a certain industry. A value chain framework has been proposed that analyzes the critical capabilities needed along the value chain of an industry for firms to succeed, existing capabilities of the firms and how the strategic alliances they enter into is an effort to bridge the capability gap. The dominant nature of alliances is driven by specific requirements of its value chain. The different reasons behind such alliances have shown an important shift towards the Research and Development alliances and Product Development initiatives rather than concentrating solely on the marketing and sales/distribution concerns as was the case before TRIPS (2005). Thus in the post-2005 scenario, the pharmaceutical industry has undergone a significant change due to the TRIPS agreement. Substantial scope for further research is possible in this area. More industries can be looked into, to further verify the value chain framework. This study was constrained by limited data on strategic alliances, particularly of Indian firms. With better data, advanced analysis on the performance of various alliances to discover of a certain kind of alliance performs better in a certain industry. This had further strengthen the framework.

Appendix A Table of the partnering firms in the Indian Pharmaceutical sector

Indian Partner Foreign Partner Description of Alliance Nature of Alliance Pall Pharmalab Filtration Pvt Ltd

Euroflow Ltd, UK Distribution of Euroflow ’s Chromatography products and technologies in India

Sales and Distribution Contact

Ranbaxy Laboratories Ltd

Blansett Pharmacal Co., Arkansas, USA

Sales Support to Ranbaxy’s DisperM ox, amoxicillin tablets for oral suspension in USA

Sales and Distribution Contact

Wockhardt Ltd Ranbaxy Pharmaceuticals Inc., Princeton, New Jersey, USA

M arketing of W ockhardt’s bethanecol chloride tablets in USA

Market Development, Sales and Distribution Contact

Orchid Chemicals and Pharmaceuticals Ltd.

Apotex Corp, USA Sales of O rchid’s generic cephalosporin and other injectable products in USA


Nicholas Piramal BioSyntech, Canada

Drug Research and development in Biotechnology area

R&D alliance


Glaxosmithkline, UK

Development of New Chem ical entities (NCE’s) or new drugs in the area of urology, anti-fungal, anti bacterial and metabolic disorders

R&D alliance

Dabur India Ltd Abbott Laboratories, USA

Marketing of a number of Dabur products in the USA on an exclusive long term basis


Ranbaxy Fine Chemicals Ltd

Mallinckbrodt Baker Inc (MBI), USA

RFCL will market MBI JT Baker and M allinckrodt’s range of Scientific Laboratory Products in the Indian market


Wockhardt Ltd Eisai Company Ltd, Japan

Wockhardt markets Methycobal in India


Nicholas Piramal Biogen Ideac, USA NPIL markets Avonex for multiple scelorosis in

Market Development, Sales and Distribution

India and Nepal Contact Dr Reddy’s Laboratories Ltd

Lenier HealthProducts, USA

Fifteen year exclusive product development and marketing agreement for Lenier to market Dr Reddy’s products in USA

Product Development and Marketing Alliance

Dr Reddy’s Laboratories Ltd

Par Pharmaceutical Inc, USA

Exclusive comarketing and development agreement covering fourteen generic pharmaceutical products, Par m arkets Dr. Reddy’s products in USA



Capellon Pharmaceuticals, Fort Worth, Texas, USA

Sales and Marketing Support to Ranbaxy’s Raniclor, anti-infective Cefaclor tablets in USA


Ranbaxy Laboratories Ltd and Wockhardt Ltd

Ranbaxy Pharmaceticals Inc, Princeton, New Jersey, USA and Wockhardt Americas Inc, New York, USA

Multi product development, sales/supply and marketing agreement

Product Development and Marketing Alliance

J B chemicals and Pharmaceuticals Ltd

Arrow Group, Canada

Arrow markets and distributes generic formulations of JB in regulated markets


Appendix B Select Contract Manufacturing Deals in India

Indian Partner Foreign Partner Product

Lupin Laboratories Fujisawa Cefixime

Apotex Cefuroxime, Axetil, Lisinopril (Bulk)

Nicholas Piramal Allergan Bulk and formulations

Advanced Medical Optics Eye Products

Wockhardt Ivax Nizatidine (anti-ulcerant)

Dishman Pharmaceuticals Solvay Pharmaceuticals Eprosartan Mesylate

IPCA Labs Merck Bulk Drugs

Tillomed Atenelol Orchid Chemicals Pharmaceuticals Apotex Cephalosporin and other injectables

Sun Pharma Eli Lilly CVS Products, anti-infective drugs and Insulin

Kopran Synpac Pharmaceuticals Penicillin –G Bulk Drug

Cadila Healthcare Altana Pharma Intermediates for Pantoprazole

Boehringer Ingelheim Gastrointestinal and CVS Products

Biocon Bristol Myers Squibb Bulk Drugs

Appendix C Government Run Research Organizations: Industry Collaborations

CDRI (Lucknow) IICT (Hyderabad) CCMB (Hyderabad)

Novo Nordisk, Denmark Dr. Reddy’s Laboratories,

Hyderabad Shantha Biotechnics Pvt.

Ltd., Hyderabad

Krebs Biochemicals Ltd., Hyderabad

Lupin Laboratories Ltd., Mumbai

Dr. Reddy’s Research Foundation, Hyderabad

Avon Organics Ltd., Hyderabad

Cadila Laboratories Ltd., Ahmedabad

Bangalore Genei Pvt. Ltd., Bangalore

Cipla Ltd., Mumbai SOL Pharmaceuticals Ltd.,

Hyderabad Dabur Research

Foundation, Sahibabad

Dabur India Ltd., Ghaziabad Neuland Laboratories,

Hyderabad Biological Evans Ltd.,

Hyderabad Duphar Interferan Ltd.,

Mumbai Sun Pharmaceuticals Ltd.,

Mumbai

Hindustan Latex Ltd., Thiruvananthapuram

Cipla Ltd., Mumbai

IPCA Labs Ltd., Mumbai Nectar Laboratories Ltd.,

Hyderabad

Lupin Laboratories Ltd., Mumbai

Orchid Chemicals, Chennai

Malladi Drugs and Pharmaceuticals, Chennai

Trident Labs Pvt. Ltd., Hyderabad

Nicholas Piramal India Ltd., Mumbai

Unichem Laboratories Ltd., Mumbai

Lumen Marketing Co., Chennai

Armour Chemicals Ltd., Mumbai

Ranbaxy Laboratories Ltd., New Delhi

Bombay Drug House, Mumbai

Themis Medicare Ltd., Mumbai

Cheminor Drugs Pvt. Ltd., Hyderabad

Torrent Pharmaceuticals Ltd., Ahmedabad

Torrent Pharmaceuticals Ltd., Ahmedabad

Unichem Laboratories Ltd., Mumbai

Coromandal Pharma, Hyderabad

Wockhardt Ltd., Aurangabad

IDPL, New Delhi

References

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Strategic Value-Chain Analysis of Indian Pharmaceutical Alliances

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