This week marked the end of the latest global purge against drug counterfeiters. The international effort resulted in the shutting down of over 10,000 websites, 237 arrests and the seizing of over £18 million worth of fake pharmaceuticals.
Apparently, 72% of the drugs seized in the UK originated in India. Not exactly welcome news for the Indian pharma sector – whose reputation was already severely dented by recent FDA actions again several manufacturers.
In addition to a PR campaign to boost the image of Indian manufacturing, the authorities have now announced plans to double inspection staff and improve facilities – a move that will cost over half a billion dollars.
The recent iPHEX 2014 meeting was another useful opportunity for the Indian generics sector to meet critics head on and showcase some of its gleaming and modern manufacturing facilities.
The investment comes hot on the heels of a visit from FDA commissioner Margaret Hamburg, whose message was clear – fix your regulatory shortcomings and improve manufacturing standards.
Last year, India’s drug exports were worth over $15 billion – still growing but at a slower rate than before. Spending three percent of total exports to shore up the inspection regime sounds like a sound investment to me. Especially as the US is its biggest export market, with around 40% sales.
It’s certainly not all doom and gloom. Last year, GSK announced plans to invest £85 million building a new factory in India and it shouldn’t be forgotten that in 2012, UNICEF recognised India as the global leader in generics production. Although the FDA actions against Ranbaxy and Sun Pharmaceutical may have captured the column inches, let’s not forget that the country boasts nearly 200 FDA-approved manufacturing plants.
And of course, the legal manufacture of pharmaceuticals has absolutely nothing to do with the counterfeit drugs trade. But messages become confused in the minds of the consumers. Without tackling the illegal trade, the legal side of business may find it harder to shake off the bad press.
If India continues to be a prime source of knock-off drugs, it may need more than an expensive PR campaign to recover. Especially if it’s to return to the massive growth seen in recent years.
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