If you are not happy with the results, please do another search

Prakriti Jaiswal | Pharmaceutical Sector in India

Tune into this episode of our podcast series featuring our Partner, Prakriti Jaiswal, as we explore the regulatory and compliance landscape in the Indian healthcare sector. From FDI regulations in pharma to quality standards and pricing challenges, this episode offers key insights into the hurdles and opportunities faced by the industry.

Watch now to stay informed about India’s evolving healthcare sector!

Transcript:

Hello and welcome to the first episode of our podcast series aimed at exploring the regulatory and compliance aspects of the Indian healthcare sector.

As we know – India stands as one of the world’s largest producers and exporters of generic medicines, playing a pivotal role in the global pharma supply chain, valued at around 50 billion dollars.

Foreign Direct Investment in India’s pharmaceutical sector has always been a topic of significant importance, given the industry’s role in global healthcare. The Indian government has been gradually liberalizing FDI in this sector, but there are still certain restrictions and conditions that companies must navigate. 100% FDI is allowed in the greenfield pharmaceutical entities/ projects through the automatic route. For brownfield pharmaceuticals entities or projects, while 100% FDI is allowed, however only 74% is allowed under the automatic route. For FDI investment beyond 74%, government approval is required. Non-compete condition with the existing shareholders is not allowed barring special circumstances at the discretion of the government. Further, in such cases, the government approval may also incorporate additional conditions.

Despite the sector’s growth, regulatory and compliance challenges can be a hurdle. Stringent registration requirements and extensive documentation are common pain points. To improve the business environment, extending the validity of licenses and reducing documentation requirements could be beneficial.

Another area for improvement is the labelling requirements. While Indian labelling standards are robust, they don’t fully align with international standards like those from ISO, which promote global harmonization and market access. Adopting ISO standards into Indian labelling practices could boost international competitiveness and operational efficiency while ensuring compliance with local regulations.

Moving to the pricing – the Drug Price Control Order plays a crucial role in making essential medicines affordable in India. While it has positive impacts on public health by ensuring access to necessary drugs, it also presents challenges for pharma companies, including pricing pressure and potential impacts on innovation. Balancing affordability with the needs of a dynamic and growing pharma industry remains a critical challenge for policymakers.

Lastly moving to the quality standards – the implementation of revised Good Manufacturing Practices has been essential. It has led to a significant enhancement in the quality of drugs manufactured in India.

In conclusion, while the FDI landscape in the Indian pharmaceutical sector has become more liberalized over the years, companies must still navigate a complex web of regulations to operate effectively. Thanks for tuning in. In the upcoming episodes, we will dive deeper into other pressing issues in the healthcare sector.

JSA advised Kauvery Hospital in multiple property acquisition and setting up of hospitals

JSA assisted and represented Sri Kauvery Medical Care (India) Limited(“Kauvery Hospitals“) in connection with the acquisition of properties for setting up of hospitals in the cities Tirunelveli, Salem and Hosur of Tamil Nadu.

In Tirunelveli, JSA advised and assisted Kauvery Hospitals in the acquisition of an existing hospital property.

In Salem and Hosur, JSA has assisted and represented the client in setting up of new hospitals. The transaction involved proposed construction of hospital building under the ‘Built-to-suit’ model and acquisition of the hospital property under a composite long-term lease.

JSA provided support to the client in due diligence, transaction structuring, drafting of deal documentations and rendering of closing assistance. This strategic expansion marks a significant milestone for Kauvery Hospitals in enhancing healthcare access across the region.

Our Transaction Team Comprised Partner – Aravind Raj and Associate – Priyanka Ponna.

Biocon Biologics Limited’s sale of its Indian branded formulations business to Eris Lifesciences

JSA advised Biocon Biologics Limited in the sale of its Indian branded formulations business to Eris Lifesciences Limited for an aggregate consideration of INR 1,242 Crore. As part of this deal, Biocon Biologics Limited also signed a 10-year supply agreement with Eris Lifesciences Limited.

Biocon Biologics Limited is a unique, fully integrated leading global biosimilars player with established capabilities in the development, manufacturing and commercialization of high-quality biosimilars. This collaboration is in-line with Biocon Biologics’ strategy to unlock value from its legacy business of branded formulations built over the past two decades and extends its existing partnership with Eris for Biocon’s Nephrology and Dermatology business announced in December 2023.

 JSA assisted Biocon in navigating complex legal issues, including those under Indian pharmaceutical regulations, intellectual property laws and tax laws, each of which had material commercial implications for the transaction. The team helped the client balance various commercial considerations while structuring the deal and helped parties enter this long-term collaboration seamlessly.

Our transaction team comprised lead partner – Probir Roy Chowdhury, partner – Yajas Setlur, senior associate – Soumya Bhargava, associate – Moushami Nayak and Nikhil George.