Indian Pharma Boosts US Acquisitions Amid Regulatory, Market Shifts

In an attempt to protect themselves against future uncertainty, Indian pharmaceutical companies are rapidly increasing their US footprint through a series of acquisitions. Prominent companies including Senores, Zydus, Sun Pharma, and Syngene have all made calculated acquisitions, which reflects a larger change in the market.

Insiders and analysts interpret this tendency as an attempt to scale operations, reduce expenses, and preserve profitability in the face of stricter USFDA rules. Additionally, as businesses look to lessen their reliance on conventional generics, the growing demand for specialty and biosimilar medications has prompted acquisitions.

According to Prof. Vivek Padgaonkar, Independent Director of ENTOD Pharmaceuticals, the increase in acquisitions is the reason why Indian companies are becoming more confident in navigating the USFDA's regulatory environment. He added that businesses are expanding through acquisitions more easily as a result of broadening their product ranges.

For example, Sun Pharma's $355 million acquisition of Checkpoint Therapeutics demonstrates its efforts to expand its immunotherapy and cancer portfolio, according to Vivek Tandon, VP of Primus Partners, and Nilaya Varma, CEO & Co-Founder of Primus Partners.Padgoankar noted that the US patent cliff, which occurs when popular medications lose their patent protection, gives Indian companies the chance to introduce generic versions and obtain first-to-file exclusivity.

In the meantime, suppliers' margins have been pressured by Pharmacy Benefit Managers (PBMs) and Large Group Purchasing Organizations (GPOs). According to Hari Kiran Chereddi, MD & CEO, HRV Global & NHG Pharma, Indian pharmaceutical companies view mergers and acquisitions as a means of expanding their operations, cutting expenses, and preserving profitability.