The WSJ advises this morning that Abbott will become the largest drug company in India when its deal with Piramal closes next month. This is part of Abbott's plan to expand its presence in the 17 so-called 'pharmerging' markets. These markets have grown from $42 B in 2000 to more than $126 B in 2009. IMS predicts these markets will account for 70% of pharmaceutical growth in the next 5 years.
As such Abbott's CEO Miles White was eager to outbid rivals like Cipla Ltd, Daiichi Sankyo Co., Ranbaxy Labs and GSK PLC to gain the top spot in India - even if some analysts say he overpaid. The India market is expected to swell from $11 B in 2009 to more than $30 B by 2020. Abbott is looking for more than $8 B in sales from pharmerging markets in 2010 and wants to exceed $14 B over the next 5 years. A lot of this needs to come from India.
Fierce Biotech this morning reports on Cipla Ltd plans for expansion in India. The company says it is making investment plans for more biotechs in the region and is looking to spend up to $200 M toward this effort. Cipla has acquired Stempeutics in the recent past and wants to invest more in biosimilars -- particular in HIV/AIDS therapeutic area.
Posted by Bruce Lehr August 26th 2010.