The Hindu : Business : Merck re-enters Indian market

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Saturday, Jul 23, 2005

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Business

Merck re-enters Indian market

Staff Reporter

Plans to introduce two life-saving drugs; to focus on sales and research

NEW DELHI: The U.S.-based pharmaceutical major, Merck & Co., on Friday announced its re-entry into the Indian market after a gap of over two decades through its fully-owned Delhi-based subsidiary, MSD Pharmaceuticals Private Limited. This year the company plans to introduce two life-saving drugs followed by a couple of drugs and vaccines each next year.

Hoping to cash in on the relaxed patent regime and conducive business environment in India, the company will first introduce Zienam (a broad spectrum beta-lactam anti-biotic) and Aggrastat (a cardiovascular drug that works as platelet aggregation inhibitor) by next month. This will be followed by the launch of Invanz (a second generation beta-lactam anti-biotic) and Cancidas (an anti-fungal) and two vaccines — Pneumovax (anti-pneumonia) and Varivax (anti-chicken pox).

Stating that all these drugs would be imported, Merck's Indian subsidiary Managing Director, Leonard Tauro, said there were no immediate plans to set up a manufacturing unit, but depending upon sales, the company would explore the possibilities, if any. "We are also negotiating with a number of pharmaceutical companies for marketing tie-ups. Merck might also look into starting some research work in India to develop drugs for ailments that are common among Indians like diabetes. We will also like to concentrate on other medical fields like oncology and neurology in India," he added.

Mr. Tauro said that import of drugs would not make its drugs costly. "Our drugs will be competitively priced. We know import duties are high, but we will cut on profits to make drugs within people's reach," he added. According to Mr. Tauro, Merck has a $15-million commitment for investment as per Foreign Investment Promotion Baord approval in the next five years, while the company will initially focus on sales, marketing and research operations here. The Medical Director of MSD Pharmaceuticals India, Naveen Rao, said the company had already established a "Medical Department and Clinical Research Division" that was now conducting registration studies on four products in infectious diseases and vaccines at over 25 sites across the country.

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