20 July 2007 22:05 [Source: ICIS news]
By Feliza Mirasol
NEW YORK (ICIS news)--A shift from generic drugs to drug discovery could change India’s pharmaceutical industry, industry observers said on Friday.
“India has clearly moved away from the mainly generic and specialty contract manufacturing to innovative drug discovery and development, thereby actively taking part in global competition,” according to Business Insights, a UK-based market analysis firm.
India-based Laurus Labs started offering drug discovery services in October 2006.
“Drug discovery services were an integral part of our business model from the inception," said Chava Satyanarayana, founder of India-based Laurus Labs. "We wanted to provide an integrated approach to our clients and help them speed up their drug development,"
India has long been a giant in the generic drug industry, known for its low-cost manufacturing of active pharmaceutical ingredients and other pharmaceutical intermediates. Companies in India have found success in following up on blockbuster drugs and developing the next generation of copycat pharmaceuticals.
However, India is now moving towards a new system of innovation and originality by engaging in drug discovery, said industry sources. This involves significant investment in R&D, scientific expertise, laboratory and manufacturing facilities, as well as recruiting, educating and training new scientists.
The danger of losing its generics stronghold in the global market pushed India towards drug discovery, sources said. The threat stems from Indian regulators now having to enforce patent protection laws.
"In the long term, companies engaged in knowledge-based services or product-based services will occupy leadership positions," said Satyanarayana.
Growth of the contract-research-organisation market is also encouraging the growth of the drug-discovery sector in India, sources said.
Contract outsourcing of early-stage research and early-stage clinical studies from both pharmaceutical and biotechnology firms has been rising in the double-digit range for many years, driven largely by a need to contain rising R&D costs, said Business Insights.
Key players in India that have capitalised on the growing need for drug discovery services include Chembioteck, GVK Bio, Sai Life Sciences, Research Support International (RSIL), Syngene, Jubilant Organosys, Advinus Therapeutics and Aurigene.
Look for the full story on drug discovery in India in the 23 July issue of ICIS Chemical Business.
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