Wednesday, April 3, 2013

Even with less patent protection, pharmecutical companies should still market to india

Recently, the Supreme Court ruled in a favor of a small pharmaceutical company, allowing it to offer the inexpensive alternative to its cancer drug Glivick. Many are concerned that by denying the patent claim to the drug company Novartis, that less and less investment and innovation could come into India. While there may be an argument for patent protection in this instance, it would be stupid for multi national companies of all types to avoid india.

In "Whats happening next," the article explains that the middle class around the world is growing, consisting of 40% of the world population. This figure is up from 20% over the past ten years. As these markets are growing, companies need to account for these markets in their long term strategies.

These markets can appear not profitable in the short term. But the emerging world market is the place where companies can form new brand allegiances and introduce world customers to products they have never had before. Short term gains are more easily made in western world, the long term growth will be made in these emerging markets.

Even with patent laws being relaxed in India, it would be awful in the long term for Glivick to abandon creating a market space in India. If Glivick where to drastically reduce its expansion into India, it would only be a matter of time until another company came in to the fill the void.

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