Drugmaker Sanofi looking to boost investment in India

The French company, which has been present in India since 1956, aims to set up new infrastructure and additional capacity and focus on new formulations for both local consumers as well as export

August 6, 2018

The company, at its three Indian production sites, develops chemistry and fixed dose combination to manufacturing tablets and capsules as well as vaccines for the global market

Over the past six years, Sanofi has invested more than US$260 million in India. It produces around 10.2 billion tablets annually, apart from vaccines, which end up in over 80 countries

The Indian pharma sector was valued at US$33 billion in 2017, and it is expected to expand at a compound annual growth rate of around 22 per cent over 2015–20 to reach US$55 billion

To bolster capacity, Sanofi acquired Shantha Biotechnics, an Indian biotechnology firm, in 2009 for over US$580 million. Sanofi’s activities falls in line with the ‘Make in India’ initiative

Sanofi SA, a French multinational drugmaker, is looking to boost investment in India, as per a report by the Business Standard on August 6, citing the managing director of India operations, N Rajaram. The company is planning to set up new infrastructure and additional capacity, while focusing on new formulations and products for both local consumers as well as export. In doing so, Sanofi is anticipating 9-12 per cent growth across various businesses. The company, at its three Indian production sites, develops chemistry and fixed dose combination to manufacturing pharmaceutical dosage forms (tablets and capsules) as well as vaccines for India and the global market. Currently, Sanofi is focusing on bringing new products to India, while increasing export from the nation.

Mr Rajaram said that the new products will focus on therapy areas such as atopic dermatitis, diabetes, and neurological disorder multiple sclerosis. Apart from research and development, Sanofi will invest in manufacturing, people and services. Over the past six years, Sanofi has invested more than US$260 million in India. It produces around 10.2 billion tablets annually, apart from vaccines, which end up in more than 80 countries. As far as India is concerned, 94 per cent of Sanofi’s sales in locally sourced. To bolster this capacity, the company had acquired Shantha Biotechnics, an Indian biotechnology company, in 2009 for more than US$580 million. Sanofi’s activities falls in line with the Government’s ‘Make in India’ initiative which has sought to boost indigenous manufacturing.

India is the largest provider of generic drugs globally, as well as of over 50 per cent of global demand for vaccines. The pharmaceutical sector in India was valued at US$33 billion in 2017, and it is expected to expand at a compound annual growth rate (CAGR) of around 22 per cent over 2015–20 to reach US$55 billion. Meanwhile, India’s pharmaceutical exports stood at US$17.3 billion in 2017-18 and are expected to reach US$20 billion by 2020. To make the most of this growth opportunity, Sanofi intends to continue investments in increasing its capacity in India. It is also setting up a new facility to manufacture insulin cartridges at an investment for around US$50 million. Medicine spending in India is expected to rise at 9-12 per cent CAGR between 2018-22 to US$26-30 billion.

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