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Indian Pharma Exporters to Cheer

The Japanese government is encouraging the use of cheap generic drugs because the age demographics are tilted towards the elderly, which is resulting in a higher spend on social security. From the current 17% market share, Japanese government plans to convert at least 30% of the country’s drug prescription to generic or off-patent drugs by 2012.

This will give an opportunity to Indian generic drug makers, especially those who already have a presence in Japan. This includes, Lupin and Ranbaxy. Daiichi Sankyo Co, Japan’s third biggest drug maker, acquired a 34.8% controlling stake in Ranbaxy in 2008. On the other hand, Lupin acquired 80% of Kyowa Pharmaceutical Industry Co in 2007.

Exports of generic drugs from India to the US are also expected to get a boost. According to the US healthcare bill, an additional 32 million Americans will get healthcare coverage. This means the US government will try to curtail growing healthcare budgets by introducing generic versions of drugs wherever possible to cut the already burgeoning cost of medication.

An increase in patent filings by Indian companies with regulators across the world, at a time when many patents are set to expire, will give Indian pharma exports another reason to cheer.

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