Generic drugs online

Source: Moneycontrol.com

Date: 5-Mar-2009

Pfizer, the world's largest pharma company by revenue, wants to expand its generic drugs business. This, the company says, may mean more licensing deals with Indian generic drug makers. CNBC-TV18's Sriram Iyer delves deeper.

Grow through affiliations, not acquisitions! That's drug giant Pfizer's new mantra. On Tuesday, Pfizer expanded its licensing deal with Aurobindo Pharma to include 44 drugs, from the earlier five. It is now in talks with other Indian generic drug makers to in-license more off-patent products. This means Pfizer will have a license to market and distribute drugs from these Indian drug companies globally. Generic drugs add about USD 10 billion to the company's USD 44 billion sales revenues.

David Simmons, President and GM - Established Product Business Unit, Pfizer, said, "We saw that the market was very big, especially in the off-patent section. We will be looking at potential deals with other companies. It's very possible. We are in search and evaluation mode. I wouldn't give any type of expectation of timing simply because it's a very diligent process we go through."

It's a case of "if you can't beat them, join them." After all, the generic business could make up for the revenues it may lose, when its blockbuster drugs go off-patent in the coming years.

The Wyeth accquisition in January provided some support to Pfizer's weak pipeline. But Pfizer feels acquisitions are expensive. While in-licensing agreements are just what the doctor ordered, when rising costs need to be curtailed.