Buyouts of Indian Pharmaceutical Companies by Multinational Pharmaceutical Companies: An Issue of Concern

Sir, Indian pharmaceutical industry has climbed the ladder to reach third position in terms of volume and fourteenth position in value terms. It is estimated to be worth US$ 4.5 billion at annual growth rate of 8–9%. India exports generic medicines worth US$ 11 billion and is considered to be the world’s largest. It is estimated to grow at a compound annual growth rate (CAGR) of 17% between 2010–11 and 2012–13. As stated by Department of Pharmaceuticals, the total turnover of pharmaceutical industry in India was US$ 21.04 billion during September 2008 and September 2009, of which the domestic market was worth US$ 12.26 billion. The Indian pharmaceutical market is expected to reach US$ 55 billion by 2020 at the present growth rate and is said to have a potential to reach US$ 70 billion if the growth rate is aggressive. Domestic pharmaceutical market in India was about US$ 12 billion in 2010. Estimates say that it would reach US$ 49 billion at a CAGR of 15 per cent. Indian diagnostic service and clinical trial services were also said to be growing at a faster pace.[1]