Knowledge@Wharton -- Health Economics

Cure for an Ailing Industry? Pharma Multinationals Seek a Panacea in Indian Acquisitions

Thu, 22 Oct 2009 15:11:49 EST

A few years ago, Indian pharmaceutical companies seemed to be on the takeover trail. But if recent headlines are any indication, the same firms are now targets for multinational suitors. According to some industry experts, an increasing number of acquisitions by multinational companies (MNCs) is almost certain once valuations improve -- whether for diversification, exposure to emerging markets or other purposes. Meanwhile, questions concerning the impact of the growing presence of MNCs in the Indian health care market -- particularly on drug affordability -- loom large.

Finding Market Opportunities in 'the Best Place to Get Sick'

Thu, 23 Apr 2009 20:59:43 EST

India's health care industry ails from severe under-penetration among its population, especially in rural areas. But according to panelists who spoke at the recent Wharton India Economic Forum in Philadelphia, there are many positives in the current health care environment that merit the attention of pharmaceutical firms, hospital chains and investment funds. These include the country's low-cost base for crafting new drugs, its strengths in alternative medicine, and new technology that is helping to grow the market.

Apollo Hospitals' Shobana Kamineni: 'India Is a Nascent Country in Terms of Health Care'

Thu, 26 Mar 2009 16:41:36 EST

By continually adopting cutting-edge technology and entering new sectors such as health insurance and pharmaceutical retailing, Apollo Hospitals, Asia's largest health care provider, has helped to shape India's medical landscape. At the recent Wharton India Economic Forum in Philadelphia, India Knowledge@Wharton spoke with Shobana Kamineni, the company's executive director of new initiatives, about Apollo's recent ventures and what the future holds for health care in India.

Eli Lilly's Rajiv Gulati on Pharma's Prospects in India and China

Thu, 16 Oct 2008 16:48:14 EST

India's huge potential pharmaceutical market and wealth of industry talent means it will be strategically critical for multinationals in the years ahead, notes Rajiv Gulati, director of India-China strategy and corporate strategic planning for Eli Lilly. But weak intellectual property protection continues to hold the country back by hampering innovation, he says. In China, there may be even greater potential, but huge regulatory barriers block a clear path. Gulati spoke with India Knowledge@Wharton about these and other industry issues during the 2008 Wharton India Economic Forum.

Apollo Hospitals' Suneeta Reddy: 'Medical Tourism Is a Huge Market'

Thu, 26 Jun 2008 14:22:56 EST

Medical tourism -- the phenomenon in which hospitals in emerging markets offer "sun, sand and surgery" at low prices to patients from North America and Europe -- is gaining in popularity. While India lags behind countries like Thailand as a result of airport infrastructure and other bottlenecks, health care providers such as Apollo Hospitals are expanding at 10% a year. In an interview with India Knowledge@Wharton at the recent Wharton India Economic Forum in Philadelphia, Suneeta Reddy, Apollo's executive director of finance, discussed the company's opportunities and challenges in this fast-growing market.

Novartis's Ranjit Shahani: Patenting Innovation 'Is the Best Protection for Patients'

Thu, 15 May 2008 15:14:44 EST

Concern is growing that patents hinder access to life-saving drugs in developing countries. While India clearly has made progress in advancing intellectual property rights, more needs to be done to align the country's approach with international obligations and standards. In an interview with India Knowledge@Wharton, Ranjit Shahani, country president of the Novartis Group in India, spoke about the importance of safeguarding intellectual property and its impact on affordability and access to medicine.

Medical Industry Diagnosis: Triage for Health Care and New Vision for Life Sciences

Thu, 17 Apr 2008 16:41:31 EST

India's medical industry is growing at a healthy rate, but infrastructure problems and a lack of trained professionals threaten to stymie the development of a world-class health care system. Meanwhile, cost and competitive pressures on Big Pharma and India's strengths as a low-cost location present huge opportunities for life sciences companies provided they can move away from their current service mentality and embrace risk to become innovators. These are among the conclusions of two recent conference panels, one at Wharton and the other at Harvard University, which explored the state of India's health care system.

How Doctors and Patients Get Better

Thu, 19 Apr 2007 15:53:09 EST

In Better: A Surgeon's Notes on Performance, Atul Gawande, a surgeon who also is a staff writer for The New Yorker magazine, examines both the utilitarian and the human sides of medical practice. In the book, he examines what goes right in American medical care, what goes wrong, how things either succeed or fail, and what might be done to improve the system. Among the examples he provides: A polio "mop up" in Karnataka, where Indian health care workers deployed 37,000 vaccinators to immunize 4 million children – in three days.

Podcast: Biocon's Kiran Mazumdar Shaw: 'More Indian Biotech Firms Will Be Able to Fund Discovery-led Programs'

Thu, 11 Jan 2007 17:14:34 EST

When Kiran Mazumdar Shaw launched Biocon, India's first biotech firm, in 1978, it started out as a joint venture with an Irish biotech company. After initially focusing on industrial enzymes, Biocon has evolved during the past eight years into an integrated bio-pharmaceutical firm that focuses on diabetes and oncology. "We are developing oral insulin and antibodies for specific cancers," she says. Mazumdar Shaw notes that in the past, a risk-averse capital market made it difficult for Indian biotech firms to raise funds, forcing them to provide research services much like the software services industry. Now, however, a few Indian biotech firms have developed a hybrid model in which services generate funds that are used to support discovery-led programs. Mazumdar Shaw discussed these issues and more with India Knowledge@Wharton at the recent Wharton India Economic Forum in Philadelphia.

Novartis's Alex Gorsky: Ensuring that Patients Get Access to the Medicines They Need

Wed, 27 Sep 2006 18:51:22 EST

Alex Gorsky was named head of Pharma North America and CEO of Novartis Pharmaceuticals Corp., the U.S. affiliate of Swiss drug giant Novartis, in the fall of 2005. Since joining the company in 2004 as chief operating officer and head of general medicines, Gorsky has overseen the continued growth of Novartis's industry-leading cardiovascular franchise, notably the blockbuster drugs Diovan and Lotrel. The company sells a variety of products, including those that treat endocrine and respiratory disease, gastrointestinal illnesses, cancer and blood disorders and bone and joint conditions, among others. Prior to joining Novartis, Gorsky was company group chairman for Johnson & Johnson's pharmaceutical business in Europe, the Middle East and Africa. Before that, he spent 15 years in sales, marketing and management at Janssen Pharmaceutica. Gorsky was recently on campus to take part in a Wharton business roundtable on leadership and agreed to talk with Knowledge@Wharton about trends in the pharmaceutical industry.

Industry Leaders Debate Big Pharma R&D (Too Little Hope?) and Stem Cell Research (Too Much hype?)

Wed, 22 Mar 2006 15:54:43 EST

Different points on the research spectrum were under the microscope at the Wharton Health Care Business Conference last month as two panels of biotech, pharmaceutical and investment leaders discussed the state of R&D among big pharmaceuticals and the progress of stem cell research. While disappointing results in both sectors have dominated the news lately, panelists at each session also noted some promising developments -- and causes for optimism -- in their respective fields.

Taking India's Pulse: The State of Health Care

Wed, 30 Mar 2005 10:15:38 EST

India is now one of the world's largest producers of generic drugs and vaccines. Companies like Ranbaxy and Dr. Reddy's Laboratories are becoming well known around the world. But interest is growing in the health care industry's domestic agenda. How India plans to leverage its reputation on the global pharmaceutical stage to address the needs of its own people was the focus of a panel and keynote address at the Wharton India Economic in Philadelphia.

Encouraging the Development of Drugs for Poor, not Just Rich, Nations

Wed, 23 Oct 2002 00:00:00 EST

As AIDS and other diseases tear through the developing world, public health advocates are seeking new models to overcome the failure of markets and governments to generate research that would help millions of people suffering from illness and poverty. The current system rewards research into diseases that afflict rich countries, but creating new medicines for the rest of the world � and finding ways to pay for them � will demand new partnerships, according to panelists at the recent Wharton conference on �Pharmaceutical Innovation in a Global Economy.�

What's Behind U.S. Drug Companies' Response to the AIDS Crisis Abroad?

Wed, 11 Apr 2001 00:00:00 EST

As the magnitude of the AIDS crisis abroad becomes tragically clearer, U.S. pharmaceutical companies have come forward with offers of key drugs to poor countries at greatly discounted prices. What lies behind these offers? And what do they mean for America's system of developing and marketing new drugs?