NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, December 12, 2016

New Delhi, Dec 12: Indian drug companies will continue scouting for acquiring overseas assets over the next two years to enhance their presence in developed and emerging markets, according to Moody’s Investors Service.

“Indian pharmaceutical companies will continue to seek growth through the acquisition of overseas assets or companies in the next 18-24 months, with the aim of deepening their geographic and product diversity, and increasing their presence in developed and emerging markets,” Moody’s Investors Service said in a report titled Pharmaceuticals India: Inorganic Expansion to Drive Generic Majors’ Growth.

The push for overseas expansion comes amid global pharmaceutical industryconsolidation, driven by drug companies’ desire for product and pipeline diversity, scale and pricing power, it said.

“The Indian pharmaceutical sector is not immune to this global trend, and we expect Indian companies to benefit from asset/drug sales resulting from industry consolidation,” the report said.