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.
{{/usCountry}}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.
{{/usCountry}}"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.