Pharmaceutical Research and Licensing Deals in India
Macro and Micro Dynamics for Empowering Trade, Industry and Society, Eds., Deepak Srivastava, Pawan K. Chugan, Nirmal C. Soni, Nikunj Patel and Excel India Publishers, New Delhi, for Institute of Management, Nirma University, Ahmedabad India. Jan. 2016, ISBN: 978-93-85777-07-3, pp. 13 - 21
9 Pages Posted: 13 Apr 2016
Date Written: January 1, 2016
The global pharmaceutical industry is in an era of greater uncertainty because of looming patent expiries of established drugs having a direct impact on their sales and profitability. Further discovering new drugs in-house is a risky, time consuming and expensive proposition. This has forced many leading pharmaceutical companies investing billions of dollars in in-house R & D for discovering and developing new drugs, to instead in-license assets from other biotech’s as well as academic research institutes across the world. India owing to its large academic resource pool and a booming biotech start-up sector, has been a focus for these large MNC’s scouting for licensing new drugs. This work analyses the licensing activities that have happened in India. This work also aims to analyse the trends, and advice Indian pharmaceutical companies on ways to enhance the value of out-licensed drugs. A key observation from this work reveals that most of these licensed drugs by big pharmaceutical companies from Indian companies are being returned back citing lack of sufficient competitive advantage.
Note: This paper was presented at the 19th Nirma International Conference on Management (NICOM 2016) on the theme of “Empowering Trade, Industry and Society in Challenging and Competitive Environment” organized by the Institute of Management, Nirma University (IMNU), Ahmedabad, India during Jan. 7-9, 2016. Paper is uploaded with the permission of IMNU and its contents may be cited with its source for academic purpose such as the brief quotations embodied in critical reviews and certain other non-commercial uses as permitted by copyright law. However, the copyright of this paper remains with (IMNU) and its permission is necessary for any commercial use.
Keywords: Pharmaceutical R & D, Licensing, MNCs, R&D, Indian biotech sector, Out-licensing deals
JEL Classification: D46, F2, F23, F29, L24, L51, L65, O32, O33, O34, O38
Suggested Citation: Suggested Citation