MNCs look towards India for a booster dose

In recent months, several pharma multinational corporations (MNCs) are increasingly turning to Indian companies to expand market reach in the country's pharmaceuticals sector.

- ANJALI SINGH

Sanofi's partnerships with Dr Reddy's, Cipla, and Emcure, AstraZeneca and Mankind Pharma-teaming up for asthma medication distribution-are a few instances of this trend.

This strategy allows MNCs to leverage established Indian networks and reach a wider audience. Indian companies also benefit from global brands and expertise, say analysts.

Sanofi recently signed a partnership with Dr Reddy's (DRL) to exclusively distribute and promote Sanofi's vaccine brands across private markets in India.

Through this, DRL's gains access to Sanofi's vaccine portfolio, including brands like Hexaxim and Pentaxim.

This will boost Dr Reddy's reach and offerings, while Sanofi will leverage the former's established distribution network and market expertise to expand footprint.

Speaking on this, Kunal Shah from Citigroup Global Markets India stated, "From a domestic company's perspective facing a slowdown in core therapies like acute medication, partnering MNCs offers access to premium brands and specialist networks. This enhances their value proposition."

Similarly, MNCs, with limited presence beyond urban centres, gain wider market access through domestic partners' distribution networks. These collaborations, often involving fixed-margin agreements, ensure insulated margins for MNCs while increasing volumes through domestic sales forces.

Sanofi aims to reach €10 billion in annual sales from vaccines by 2030.