The rapid development and growth of the healthcare market in India requires a lot of innovation and therefore the match between Israeli and Indian companies is synergistic. Israel Makov, Chairman, Sun Pharmaceutical Industries while speaking with Usha Sharma emphasies on the need of innovation in India and shares an example of Taro’s acquisition by Sun Pharma, which had an impressive impact on both the companies
At the Indo-Israel economic forum organised by CII, you made a point that innovation was crucial to the pharma sector and Indian companies should look to Israel as a market as well as source of innovations. Can you elaborate giving us specific examples on the same?
Innovation is a key success factor for companies in the pharma and medical device field. The output and productivity of innovation in Israel is one of the highest in the world. The rapid development and growth of the healthcare market in India requires a lot of innovation and therefore the match between Israeli and Indian companies is synergetic and has a potential to create huge value. Israel is a small market for Indian companies but they can make attractive investments there. A good example is the acquisition of Taro by Sun Pharma, which created enormous value for both companies.
The rapid development and growth of the healthcare market in India requires a lot of innovation and therefore the match between Israeli and Indian companies is synergetic and has a potential to create huge value.
While Israel is a small market for Indian companies it offers attractive investments opportunities. A good example is the acquisition of Taro by Sun Pharma, which created enormous value for both organisations.
You had also mentioned that Israel is a global pharma market and a lot of innovative drug research is in the process. If this is the scenario then why there are limited number of pharma companies in Israel?
Israel is not a global pharma market but an important resource to the global healthcare industry, and thus we have very few global pharma companies but we have many start-up companies that are focusing on innovation.
Why do you think it would be difficult for Israel-based pharma companies to venture on their own in India?
Considering the scale and complex nature of India’s pharma market, it makes significant business sense for Israeli companies to tap the Indian market through local collaborations.
Regulator expectations are continually evolving across the globe, how will this challenging and crucial element impact pharma companies? And what are your suggestions to cope with this change?
Regulation is an integral part of our business. As a responsible member of the pharma industry, it is important that we adapt ourselves to new regulator expectations.
You have said that Indian pharma companies need to have a broader mindset. What do you mean by this?
There are over 3000 pharma companies operating in India, but a very small percentage has successfully gone global. Indian pharma companies need to be successful in scaling up businesses globally.
To bring transparency and a better system in place what do both the governments need to do?
Both governments should initiate, encourage and support events that will serve as a meeting place for both industries, such as conferences and trade fairs.
You had mentioned that in Israel there are improved treatment procedures, management systems. A huge centre of excellence too is coming up. Kindly elaborate.
Israel is exploring co-operation in number of areas with Government of Gujarat, including agriculture, industrial research and development, solar and thermal power, pharmaceuticals, water recycling and water desalination plants.
Besides India, which other countries are trying to tap the market and why? Why do you feel it is imperative for India to have a strategic partnership with Israeli pharma companies?
Globally, Israel is on the R&D radar of most countries. Israel ranked third in the ‘Innovation’ category in the last Global Competitiveness Ranking published by the World Economic Forum. Globally, the country ranks fourth in scientific activity. Six Israelis have won the Nobel Prize in Chemistry in the past decade. Its spending on research and development as a percentage of GDP is consistently and substantially higher than that of such advanced research nations as Japan, the US and the UK.