‘Sanofi considers India as must-win country’
French drugmaker Sanofi has stepped up focus on India with investment in new facilities and introduction of products and therapies for the domestic market and export. The multinational pharmaceutical company, headquartered in Paris, is eyeing 9-12 per cent annual growth across various verticals.
Speaking to Business Standard, N Rajaram, managing director of Sanofi India, said the company was not only working on bringing new global drugs to India but was keen on ramping up export. New products would primarily be in therapy areas — atopic dermatitis, diabetes and multiple sclerosis. Sanofi, which operates in India for six decades (it has origins in Hoechst Fedco Pharma since 1956), considers its market a must-win country. The share of India is around one per cent of its global revenue but the country, it says, is crucial for its emerging market strategy.
Sanofi ranks first among global players, according to market research agency IQVIA’s global pharma sales audit. Globally, it ranks fifth among Big Pharma.
“We will invest in India, in manufacturing, people, and services. It is an important country for us,” Rajaram said. “Since 2012, we have invested ~18 billion in India. This is in addition to the ~40-billion investment to acquire Shantha Biotechnics in 2009,” he said.
Rajaram said investments on capacity addition were a continuous process, be it upgrade in Shantha (readying it for new vaccines) or in capacity augmentation at the company’s Goa or Ankleshwar (Gujarat) plants. The firm is also setting up a ~3.5-billion facility for insulin cartridges.
In 2018, Sanofi launched three innovative products — Toujeo (a next generation basal insulin), FluQuadri (fourstrain influenza vaccine), and Aubagio (oral tablet for multiple sclerosis). According to analysts, Toujeo is a key product, for Sanofi’s growth.
Ranjit Kapadia, analyst with Centrum Broking, said, “The company has launched Toujeo at a 40 per cent premium over its insulin product Lantus.” Kapadia said Amaryl (antidiabetic) and Combiflam (pain reliever) have been doing well. Its vaccine Hexaxim (used as a preventive against six diseases) has grown into a ~1.75-billion franchise.
Rajaram said the company had been discussing with the government over introduction of dengue vaccine. Last year, Sanofi’s anti-dengue vaccine Dengvaxia generated controversy and the firm was forced to stop vaccination in Philippines after admitting that the product posed higher risks to people without prior dengue infection. “We are awaiting government-instituted study report on dengue prevalence in India,” Rajaram said.
Notwithstanding the setback in 2017, Sanofi’s turnover across its pharmaceuticals, consumer health care, vaccines, and exports in India ~35 billion. Sanofi India exported ~7 billion in bulk drugs, medical devices, vaccines as well as pharmaceutical formulations to nearly 60 countries last year.