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Pharma firms see opportunity in Japan

business Updated: Mar 23, 2011 22:51 IST
Sachin Kumar

Indian pharmaceuticals companies that have presence in Japan stand to benefit from the increasing health-related problems in Japan in the wake of the earthquake and tsunami. Currently Lupin, Zydus Cadila, Cadila Healthcare, Dishman Chemicals and Pharmaceuticals have a presence in Japan, which is the second-largest economy after the United States.

"The increasing healthcare demand after the Japanese crisis would lead to a favourable opportunity for those companies having presence in Japan as the demand for anti-infective, gastro intestinal and neuro-psychiatric treatment drugs would see a rise," says Sapna Jhawar, pharma analyst in broking house Sharekhan.

The Japanese generic market is expected to grow at about 9-13% to $8-11 billion (Rs 36,000-50,000 crore) with a government target of 32% generic prescription by 2012.

Among the players Lupin will benefit the most due to its established presence in Japan. Its Japanese subsidiary Kyowa Pharma contributes about 11% of its total sales and has a number of products in the anti-infective, gastro-intestinal and central nervous system category and ranks seventh in the generic companies in Japan and has a leadership in neurology. Lupin declined to comment on the impact of natural calamity on the Kyowa's performance.

Ahmedabad-based Zydus Cadila, Cadila Pharmaceuticals and Dishman Pharmaceuticals are the other Indian companies that have started selling generics in Japan at a smaller scale.

"We are continuously increasing our presence in Japan's generic market and natural calamity would increase our penetration further," says an official of Cadila Pharmaceuticals who did not wish to be named.