However, the question still remains unanswered. “Why now?” “Currently the valuations demanded by the companies are on the higher 
side and are major deterrent to big deals. Besides, apart from M&As, companies are also on a lookout for brand acquisitions to enhance their presence in respective therapeutic segments,” reasons Nangra. Also, with concerns related to economic slowdown and a history of failed overseas acquisitions, Indian companies now seem to have realised that though it’s exciting to buy big companies abroad, the real synergies are hard to achieve. Moreover, the competition from small generic drug-makers has stiffened too forcing these big pharma companies to re-think their strategies. “Develop new business models… on the basis of strengths & revenues – this is the most important factor that will decide the competitiveness and sustainance of Indian companies in the future,” agrees Dr. R. B. Smarta, MD of Interlink, a pharma and healthcare consultancy. Even Sujay Shetty, Associate Director, Financial Advisory Services Pharma & LifeSciences, PwC shares the same view. “This will not only provide the required size and expertise to the domestic companies (so that they can compete globally) but will also certainly improve efficiency; provide economies of scale; and strengthen their product portfolio, eventually benefiting the industry as a whole.”
Thus, as international pharmaceutical companies increase their activity in India and globally and bring-in modes of killing, domestic companies will need to move up the product value chain. And in this context, targeting niches seem to be the next best move. Yes, but then it’s not that simple – it all depends on what you pick!
side and are major deterrent to big deals. Besides, apart from M&As, companies are also on a lookout for brand acquisitions to enhance their presence in respective therapeutic segments,” reasons Nangra. Also, with concerns related to economic slowdown and a history of failed overseas acquisitions, Indian companies now seem to have realised that though it’s exciting to buy big companies abroad, the real synergies are hard to achieve. Moreover, the competition from small generic drug-makers has stiffened too forcing these big pharma companies to re-think their strategies. “Develop new business models… on the basis of strengths & revenues – this is the most important factor that will decide the competitiveness and sustainance of Indian companies in the future,” agrees Dr. R. B. Smarta, MD of Interlink, a pharma and healthcare consultancy. Even Sujay Shetty, Associate Director, Financial Advisory Services Pharma & LifeSciences, PwC shares the same view. “This will not only provide the required size and expertise to the domestic companies (so that they can compete globally) but will also certainly improve efficiency; provide economies of scale; and strengthen their product portfolio, eventually benefiting the industry as a whole.”Thus, as international pharmaceutical companies increase their activity in India and globally and bring-in modes of killing, domestic companies will need to move up the product value chain. And in this context, targeting niches seem to be the next best move. Yes, but then it’s not that simple – it all depends on what you pick!
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