Eisai is testing the waters in India

Japanese drugmakers are facing two major challenges: high production costs in Japan and potential major shift to generic drugs based on the upcoming expiration of the patents of several major drug busters. In order to decrease the expected decrease in sales turnover in the future, plus facing a rather empty pipeline, quick solutions in a known conservative business are needed.
One Japanese company stands out. According to Reuters Eisai plans to start manufacturing their Aricept Alzheimer’s drug in India for exports to Japan, the United States and Europe as early as 2011. The dead line becomes critical, because patents for this drug will expire in the United States this November and then in Japan and Europe by 2012. Aricept accounts for about 40 percent of Eisai’s total sales. Next then the production of an ulcer treatment drug is planned. This is the first time for a major Japanese drug maker planning to produce a key product in India (Indian state of Andhra Pradesh).
Now that most of electronic goods production have moved away from Japan, I expect the pharmaceutical industry to do the same. I believe most likely India will take a bigger share than China.

Brought to you by Sibylle Ito (シビル伊藤)

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