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Chemistry World

 

Comment: Chemistry Strength


Indian companies are increasingly becoming a force to be reckoned with, says Brian Tempest.

The rapid growth of India's pharmaceutical industry in the markets of Europe and the US, which has made British headlines recently, owes much to the strength of the country's chemists. The ability of companies to combine strong bench chemistry with commercial agility and the advantages of a highly competitive cost base increasingly make them a force to be reckoned with in world markets. Not only that, but these companies are feted in their home country for their contribution to growing prosperity founded on a strong scientific base.

High status

Scientists enjoy high status in India and the prowess of Indian scientists has long been recognised by the international research-based pharmaceutical industry in which I have worked for my entire career. I am told that 15 per cent of the people who work in the labs of the large pharmaceutical companies in the US and Europe are of Indian origin. Now Indian scientists who have previously followed career paths in New Jersey, US, or Hertfordshire, UK, are being lured back to work for Indian pharmaceutical and chemical companies.

Similarly, young chemists emerging from Indian universities can look forward to a promising career in science-based companies in India. The premier academic institutions are turning out highly qualified scientists in huge numbers. Approximately 115 000 postgraduate MSc scientists are produced annually and around 12 000 PhDs in chemistry. Many are finding jobs with Indian companies.

World class

Working in Delhi over the last four years, I have seen Indian bench chemists in action at close range and I have no doubt that they are as good as any in the world. In many respects they are like their counterparts working in the pharmaceutical industry in the UK and US. They are mostly young, highly qualified members of the profession, proud to make their personal contribution to better healthcare through discovering new medicines or improving ones already on the market. They work on challenging projects in world class laboratories with state-of-the-art equipment and facilities. What I think makes them stand out is the combination of pragmatism, entrepreneurship and drive they bring to their work. It produces a fast moving, can-do approach that swiftly translates into commercial success.

Contrary to some doubts, Indian pharmaceutical companies manufacture to the highest levels of quality. There are more US Food and Drug Administration approved manufacturing plants for pharmaceuticals in India than in any other country outside the US.

As the latest batch of 20 young chemists passes my office window in our expanding Delhi Research Centre on the first day of their induction programme, I cannot help but think that they will be helping Indian companies give Western industry a real run for its money in the next decade.

Acknowledgements

Brian Tempest is chief executive officer of Ranbaxy Laboratories, a generic pharmaceutical company. Based in New Delhi, he is the first Englishman to run an Indian pharmaceutical company.

Indian pharmaceuticals

  • The Indian pharmaceuticals market was estimated to be worth $4.8bn (£2.7bn) in 2003, having grown 5.1 per cent over the previous year. It constitutes a little over one per cent of the world market in value terms and eight per cent in volume terms
  • India's pharmaceutical sector ranks fourth in the world in terms of volume and 13th in value terms
  • India's pharmaceutical exports total around $3bn, going to more than 65 countries
  • Management consultancy McKinsey & Co projects that the market will grow to $25bn by 2010
  • The pharmaceutical sector in India has expanded rapidly in the last two decades. It is highly fragmented and there are now more than 24 000 registered manufacturers, most of which are small companies.
  • India has the largest number of US FDA approved manufacturing facilities outside the US
  • In 2003, Indian pharmaceutical companies submitted the largest number of drug master files for active pharmaceutical ingredients with the US Food & Drug Administration (FDA) of any country - 30 per cent of all filings.
  • India has more than 60 000 generic brands in 60 therapeutic categories
  • R&D expenditure in 2003 was Rs6.6bn (£80m), amounting to about two per cent of sales, although some companies spend more than six per cent of sales on R&D