The profile of the pharmaceutical industry in Gujarat is likely to undergo a sea change in about a decade with a focus on innovation and value addition. This is different from the predominant trend of making generics. Another sunrise area is that of manufacturing of Active Pharmaceutical Ingredients (APIs), the raw material for making formulations and local manufacturing of intermediaries used to make APIs.

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The pharmaceutical industry in Gujarat comprises manufacture of generic drugs and participation in government contracts to supply medicines. Industry leaders say some companies have already started thinking along these lines and the change will be visible in the next 10 years.

"It may not be breakthrough innovation but an incremental one making treatment cheaper, simpler and faster. Now we also need innovation in addition to affordability," said Viranchi Shah, president of the Gujarat chapter of Indian Drug Manufacturers Association (IDMA), during the inauguration of Pharmac 2018, an exhibition for the pharmaceutical sector that began in Ahmedabad.

Ketan Patel, CMD of Troikaa Pharmaceuticals, said that a couple of success stories will encourage players to focus on innovation. Troikaa itself has innovated techniques for delivery of drugs, making it convenient for the user. However, he advocated a strong regime to protect Intellectual Property to protect interests of innovators.

The state is on the cusp of a sharp growth in pharmaceuticals with investments amounting to Rs 9,000 crore likely to be commissioned in about 12 months. Close to 180 companies have made investments in post-GST regime as advantages of tax heaven no longer exists and natural advantages of Gujarat are now attracting investors.

Another major concern is high reliance on China for supply of APIs to manufacture APIs locally.

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Close to 65% of the APIs used in India are imported. Moreover, intermediates used to manufacture APIs are also imported from China. Viranchi Shah, president of IDMA, feels that concrete steps need to be taken on these fronts to increase the country’s self-reliance in manufacturing drugs.