India’s INR 90,000 crore ($19.0 billion = INR 45.17 = $1) generic drug industry and growth of its pharmaceutical market over the past few years has made it an ideal place for foreign drug firms to invest. However, recent compliance and quality issues at Indian firms have made global drug companies wary of future acquisitions and partnerships. Despite losing a multimillion-dollar deal after problems were found with vaccines made by its Shantha Biotechnics subsidiary, Sanofi does not intend to scrap its plans for expansion in India. Manufacturing issues also arose for Daiichi Sankyo, which had to pay $500 million for problems with products made by its Ranbaxy Laboratories unit, and Pfizer, whose partners Aurobindo Pharma and Claris Lifesciences failed FDA audits. Some analysts blame the foreign firms for inadequate due diligence. Analysts said that Indian deals have been further complicated by recent policy reform regarding foreign direct investments and a suggested measure to control prices for a greater number of drugs.

Source: LiveMint.com