Financial Daily from THE HINDU group of publications
Friday, Mar 21, 2003
Financial Daily from THE HINDU group of publications Friday, Mar 21, 2003 |
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Corporate
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Outlook India to play a big part in Eli Lilly global plans P.T. Jyothi Datta
NEW DELHI, March 20 PROZAC, the blockbuster anti-depressant drug from Eli Lilly may have reaped its returns before it faced an onslaught from copycat drugs. But the gap between original drugs and its subsequent versions is getting narrowed and blockbuster drugs — medicines that gross $1-billion sales — do not come with a `quick-fix' formula. Against this backdrop, the Indianapolis-based Eli Lilly and Company (ELC) is banking heavily on its robust pipeline of products, besides honing its marketing skills and India is poised to carve an increasing role for itself in the $11-billion ELC's operational canvas. A significant step in this direction is expected later this year, when the Chennai-based Shasun Chemical and Drugs Ltd sends a sizeable export-order to the US, points out Mr Rajiv Gulati, Chairman and Managing Director, Eli Lilly and Company (India) Pvt Ltd (ELCIPL). This would be through Shasun's joint venture with the US-based Austin Chemical Company, an alliance to tap multinationals for contract research and manufacturing. "Earlier Austin Shasun has been doing small pilot projects. But if every thing goes as planned, then ELC's sourcing plans in India would gain momentum and it would look to increase its procurement from three Indian companies — Shasun, Ranbaxy and Sun Pharma," Mr Gulati told Business Line. At present, Shasun is a bulk provider of anti-ulcer drug Nizatidine and anesthetic Methohexital, "entirely for Eli Lilly's global consumption". Sun Pharma is working on a cardio-vascular drug that would first be unveiled by Eli Lilly in India and exported to the parent company subsequently. Meanwhile, Eli Lilly's wholly owned subsidiary in India — ELCIPL — has seen a progressive shift from importing drugs to manufacturing them locally. "About 70 per cent of Eli Lilly's sales in India comes from products sourced from Sun Pharma and Ranbaxy," Mr Gulati said. Sun Pharma produces insulin and anti-infective drug Tobraneg for Eli Lilly's Indian subsidiary. Ranbaxy currently provides bulk and finished forms of antibiotics, Distaclor and Keflex and Effcal, a calcium tablet. Having clocked a decade in India, Mr Gulati feels that Eli Lilly's local operations have worked to a T. "While the Indian operations' contribution to global sales may be small, we are the fourth largest in terms of sales in Asia, besides being the largest in clinical research. We are behind China, Korea and Taiwan and above Thailand, Philippines and Pakistan — a significant fact, given that Pakistan commenced operations about 40 years ago. However, China is almost three-and-a-half times us, despite having started operations at the same time as India." He attributes China's success to the change in laws to honour product patents, among other things. The Indian company is looking to close 2003 with a turnover of about Rs 150 crore and while the company is still on the hunt for a buyer for some of its tail-brands, he said that it would not have a significant impact on the company, even as the latter grows from strength to strength.
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