Industry Trend Analysis - Increased Manufacturing Investment Will Drive Improved Outlook For Novo Nordisk - FEB 2018
BMI View: Proposals to boost drugmakers' manufacturing capabilities in India will be supported by the government ' s sector-focused innovation plans. Novo Nordisk ' s expansion of its state-of-the-art manufacturing facility in India will enhance its already established presence in the pharmaceutical market and will place the firm in a position to take advantage of the increasing demand for diabetes therapeutics in the country. This, coupled with the company's focus on raising health awareness and forging partnerships with local healthcare institutions , will allow it to further strengthen its status.
India's pharmaceutical sector will remain a key destination for foreign direct investment and drugmakers will continue to build their manufacturing presence in the country, aligning themselves with the government's push to develop the biomedical sector. Driven by the Pharma Vision 2020, the government has embarked on its journey to become a leading country for end-to-end manufacturing and innovation and has sought to incentivise investment into local medicine production to increase self-sufficiency. The government also aims to augment infrastructure through the 'Make in India' initiative, improve the quality of the workforce and increase funds for innovation, in order to position India as one of the top five pharmaceutical innovation hubs by 2020.
Given India's position as an emerging market revenue growth driver in the Asia Pacific region, it will continue to attract investment from multinational firms despite the prevailing risks from the regulatory environment, notably poor enforcement of intellectual property protection and tough pricing environment. Novo Nordisk was the first global healthcare company to enter the Indian diabetes market, opening its first office in 1982. Since then, the firm has remained committed to reducing barriers to diabetes care by building relationships with stakeholders and making investments to expand the insulin market. Recognising the need for diabetes awareness and education in India, the firm in 1997, set up the Novo Nordisk Education Foundation with an aim to provide comprehensive education in diabetes and other healthcare issues by bridging the knowledge gap.
|India's Diabetic Population On The Rise|
|Seleted Countries: Prevalence Of Diabetes (%)|
|Source: International Diabetes Federation, BMI|