Transformational change in 2013

Dr R B Smarta

Most of us would like to live in a more caring, socially just, economically-dynamic, affordable and environmentally responsible country. The challenge is to close the gap between our aspirations and the trajectory of trends on which current status thinking, and action of the industry places us.

As we are placed in India, key developments are expected out of the current regulatory, social and political environment for pharma’s and lifescience’s status along with its impact. What I can foresee for 2013, can be described in two directional moves. But to do this, we need to think afresh about industry context, social, political and regulatory issues and understand how it might impact the industry!

Responding to increasing demographic dividend, social mobility and the need for this industry to stay competitive in this turbulent and disrupt age, industry leaders need to find out their own collective as well as individual ways. These are complex issues as multiple stakeholders are involved for its impact in the foreseeable future.

Today, country considered as export destinations are facing uncertain economic conditions. The domestic situation has become complex from pricing to ethics of marketing and selling. Bigger challenges lie ahead and the leadership needs a complete 360 degrees change to transform itself and others.

These two directional moves, can be summarised as immediately impacting moves and transformational moves in a domestic market. Immediately impacting moves:

Moves of immediate impact

Affordable pricing move:
Looking at the trajectory of revoking patents, compulsory licensing for Indian players, encompassing 384 drugs under price control and forthcoming NPPA effects, there is definitely a move towards an affordable pricing for patients. This move will immediately impact the industry as well as patients.

Generics & biosimilars

Social impact which has accelerated after Satyamev Jayate hosted by Amir Khan coupled with affordable pricing which is a key issue for political agenda is paving the way for generics and biosimilars. It has been further accelerated by the start of Swasthya bhandars. This generic move will make everybody inclusive of international, multi-nationals, national companies to launch generics in India. It will increase the competitive intensity. Similarly, purchase of medicines by Indian government in the health sector would be increased by manifold in the 12th plan, which will result in increased hospital purchases of generics.

Food and nutrition move:
Move on FBO foods business operators: Licensing has evoked a very encouraging response with deadlines given by Food Safety and Standards Authority of India (FSSAI) all over India. It makes a nutritional transition in the Indian context. Nutraceuticals, functional foods, medical purpose foods, sports medicines etc. would be encouraging and form a significant part of the market to start with.

Profitability move:
In absence of new patents coming in, the industry would cling to pre-emptive, proactive and preventive medicines as well as dietary supplements to move towards profitability. This move towards increasing profitability along with increasing volume through generics will balance the industry in its future.

Diagnostic move:
Due to higher education and health consciousness, medical practitioners would use more diagnostics. The move towards diagnostics, medical products and other allied health products would come up in the market with high income group population.

Technology move:
Indian retailed sector is poised to adapt greater technology which will improve efficiency and also give rise to organised retailing. This move will also lead to the birth of pharmacists which is a requirement in Indian conditions for patients.

International move:
On international fronts, emerging markets as well as developed markets are looking at generics substitutes and new launches. India has tremendous scope for generics all over the world.

Transformational moves

NDDS & Indian Patents move:
As many patents are expiring over time and more generic line up for the future, transformation of national companies providing, NDDS products as well as patents along with newer vaccines made in India would form a very different move against the stream in domestic as well as international markets.

Marketing ethical codes move:
As the environment amongst prescribers is being monitored through codes, ethics would bring back transformation in branding strategies in this industry.

Branding move:
Branding could be for corporates as well as for individual products although the importance of existing Customer Relationship Management (CRM) would not be fully affected.

Promotional move:
With the advent of social media being very popular, promotional stance as well as transformation in media is likely to take place through social media, specialized carved out media, mobiles, e-detailing, e-sampling etc.

Integrated medicines move:
As there is a lot happening on the front of Ayush for ayurvedic, Ayurceuticals and homeopathic medicines, chances of getting a transformation in treatment is likely. It may lead towards integrated medicines which would be for not only managing the disease but also ensuring that the patient is healed in holistic ways.

Both these moves will urge all the players in the Pharma Industry and those who are proactive and ready to invest in strategy and people to really make their mark in the next three years.