Taro looks to India to enhance competitiveness

India is fast becoming a global hub for outsourcing of R&D services such as product development due to its growing expertise in pharmaceutical science and it's ability to offer these services at a greatly reduced price compared to the West.

Israel-based >Taro,​ with revenues of $300 m (€250 m) from over 180 products sold in the US, first set up an office in India to explore outsourcing possibilities for active pharmaceutical ingredients (APIs) and intermediates back in 2004 and is now beginning to implement its outsourcing strategy.

In December, Taro struck its first outsourcing deal with India's Alkem Laboratories for a formulations development and supply contract for a number of a antibiotic products for Taro's US and other global markets.

For >Alkem,​ one of India's top 10 domestic pharmaceutical companies, this contract was a major step forward in globalising its contract research services.

Now, this month, another major Indian CRO, >J.B. Chemicals & Pharmaceuticals​ also scored a deal with Taro to assist in development of other undisclosed generic products for the US market.

"This strategic arrangement with J.B. Chemicals is intended to enable Taro to utilize J.B. Chemicals' pharmaceutical expertise to enhance its competitive position in the US and other countries with regard to certain products,"​ said Samuel Rubinstein, general manager of Taro.

With this latest deal, J.B. Chemicals is also hoping to position itself as a serious generic player in the US and other markets.

"JBCPL has invested in building excellent R&D skills and infrastructure in the formulation business. As a part of our strategy, we see a strong market for contract development and manufacturing business,"​ said chairman & managing director of JBCPL, J.B Mody.

"We have been investing in this area for the last nine months and are extremely happy to announce that our investment is paying off,"​ he said.