Pharma brand launches in local market dips

NEW DELHI: New brand launches in the local drug market have declined over the last few years as the number of original drugs going off patent has come down and as Indian companies look at new business models to boost sales and increase profits.

A total of 2,184 new brands, including line extension of old brands, hit the retail market in 2010, down 13% from 2,506 in 2007, according to IMS Health data. For the eight-month period ended August 2011, drug makers have launched only 1,014 brands. According to a senior executive at one of the country’s top drugmakers, few original drugs are going off patent globally, so it is only natural that less number of generic brands are being launched.

“This is a global trend,’’ he said. Cipla’s CFO S Radhakrishnan, says the introduction of the product patent regime in 2005 restricted generic drugmakers from selling their version of patented drugs and this is in turn has limited the launch of generic brands. Radhakrishan said his company follows a dual strategy of leveraging on exiting brands as well as launching new ones, and has maintained its annual average launch of 35 new brand introductions.