**India**: Multinational pharmaceutical companies are transforming Indian healthcare through innovations, R&D investment, and local partnerships. With significant projected growth and the establishment of global capability centres, MNCs aim to enhance their market presence while addressing the country’s unique healthcare needs.
Pharmaceutical multinational corporations (MNCs) are not merely operating within the confines of the Indian market by selling medicines; they are actively reshaping the healthcare landscape of the country by introducing a range of innovative technologies and therapies while engaging in patient-centric programmes. This emergence occurs alongside a growing partnership with local Indian firms, fostering a substantial investment in research and development (R&D) hubs, clinical trials, and skill development initiatives.
As reported by Fortune India Magazine, nearly all major MNC pharmaceutical companies have either established or are in the process of setting up global capability centres (GCCs) in India. Anil Matai, the director general of the Organisation of Pharmaceutical Producers of India (OPPI), emphasised, “These centres of excellence (CoEs) play a significant role in generating jobs, upskilling the workforce and increasing the country’s knowledge base. They provide employment to over 90,000 people across India.”
A recent report conducted by BCG in conjunction with OPPI indicates that 70% of global pharmaceutical companies project annual growth exceeding 10% in India over the next five years. Furthermore, 85% of OPPI’s member companies plan to invest over $20 million on average during this period. According to OPPI, the pharmaceutical market in India is expected to reach a value of $120 billion by the year 2030, suggesting a considerable potential for growth within the sector.
The year 2025 signifies a notable milestone, marking two decades of product patent protection for medicines in India, a move that was initially anticipated to enhance the market share of foreign MNCs. However, domestic companies have continued to perform robustly. Market intelligence firm IQVIA reported that during the July-September 2024 quarter, revenues for domestic pharmaceutical firms grew by 8%, compared to a 7% growth for MNCs. Contributing factors to this trend include the limited impact of new products from global companies within the Indian market, their inability to rival the expansive distribution networks of domestic firms, and the price sensitivity prevalent among Indian consumers who tend to favour more affordable options offered by local manufacturers.
In response, MNCs have pivoted towards collaboration with local companies, seeking to create India-specific brands that offer competitive pricing. Shweta Rai, the managing director of Bayer Pharmaceuticals India, remarked, “Bayer has always focused on strengthening its presence in India by bringing innovative therapies to the Indian market faster, improving access to these therapies through tiered pricing & strategic partnerships, and accelerating R&D.” Rai highlighted successful initiatives by Bayer, including the rapid introduction of therapies for chronic kidney disease and various cancers shortly after their global launch, achieved through partnerships with Indian firms to enhance access and affordability.
Additionally, AstraZeneca’s collaboration with the Serum Institute of India during the Covid-19 pandemic serves as a salient example of effective partnerships. Sanjeev Panchal, the country president and managing director of AstraZeneca Pharma India Ltd, noted that their vaccine, developed with the University of Oxford, was manufactured in India following a technology transfer. “We offered the vaccine at zero profit. We delivered three billion doses and saved over six million lives all over the world between December 8, 2020, and December 8, 2021,” he stated.
Matai from OPPI emphasised that such collaborations are vital for foreign firms as they navigate regulatory complexities, reduce costs, and broaden their outreach. The Indian healthcare market, projected to double by 2030, offers substantial prospects for MNCs, which can enhance their investment in R&D alongside digital healthcare and patient support programmes tailored to meet local needs. Furthermore, with the Indian government aiming to establish India as a global leader in drug discovery and healthcare, there exists an opportunity for global companies to make meaningful contributions, providing innovative therapies and advanced technologies.
Source: Noah Wire Services
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