India is currently among the top five global manufacturers of active pharma ingredients (APIs). The production of APIs continues to swell with an increasing number of international companies making a beeline to India to meet their supply needs.

Growth consulting company Frost and Sullivan -- which has offices in Mumbai and Chennai and was the organiser of the event -- estimates the total production of bulk drugs and intermediates in India at $1.5-2 billion in 2004. Almost 70 percent of the total bulk drug production is exported.

Held last week in Goa, the event was organised at the Leela, a luxury hotel in South Goa. "We had 50 participants, mainly from international companies who want to come to India to outsource. The goal was to help them see how the Indian market works," Frost and Sullivan spokesperson Surbhi Dedhia told IANS here.

Nicholas Piramal India Ltd executive director (international) J.C. Saigal introduced the concept of custom manufacturing in India.

"Indian partnerships in the API and formulation development domain offer well-established reverse engineering skills, proven expertise in process development, synthesis, API and formulation development and inherent cost advantage," said Aditya Sapru, Director and Partner, Frost & Sullivan (India) director and partner Aditya Sapru.

Backed by these credentials, the chemistry expertise and other advantages, Indian players can evolve to be partners of choice for chemistry and chemistry related services, he argued.

Cambrex Pharma and Biopharma executive vice president for Europe and Asia Ed Robinson, speaking on the opportunities for contract research and custom synthesis in a changing global pharmaceutical environment pointed out that outsourcing could cause "painful dislocations" and Asian competitors needed to set "high standards".

He said, "Competition is healthy but will cause painful dislocations in outsourcing. The western Contract Manufacturing Organizations (CMOs) must adapt to survive until a new equilibrium in reached 5-15 years. However, the global CMOs with diverse products and services will continue to prosper if they answer the challenges from Asia. Asian competitors must set high standards with a long term view of their market potential."

In order to understand the relevant and strategic issues of the growing symbiotic relationship between global and Indian fine chemical and drug manufacturers, Frost & Sullivan hosted this three-day international summit in Goa.

"It was a conclave of great thinkers, strategic decision makers, and corporate heads of the leading pharmaceutical fine chemical companies," said Frost and Sullivan. This was meant to offer a platform for international companies to network with each other, and with leading Indian manufacturers.

Lukas Utiger, Head Exclusive Synthesis, Lonza argued that pharma paradigm shifts will have a "mainly positive' impact on Asian contract research organizations and contract manufacturing organizations in the mid to long term.

Large opportunities can be developed in the CMO and CRO areas, if certain key assumptions are met -- like confidentiality, non-patent infringing of new processes, open communication and information flow (supplier to customer), understanding the product quality constraints and change control in production process.

What he said was also necessary was understanding of long term relationships between business partners and the acceptance of cultural differences and a willingness to breach the same.

Some in this sector argued that emerging opportunities could help India, which has already established itself as a key pharma world player. "It is time Indian manufacturers positively seek and initiate strategic and sustainable partnerships," said Mamta Wadhwa, Industry Manager for Chemicals Materials & Foods of Frost and Sullivan, India.

Not just technical but also strategic and marketing issues were discussed in this gathering of leaders from Indian and global pharmaceuticals and fine chemicals industries.

Corporate and research heads from Lonza, DSM Pharma Chemicals, Cambrex Corporation, LANXESS, Diosynth, Bachem, American Pharmaceutical Partners, Alpharma, and Wyeth Research addressed the conference.

"With international participation from leading pharmaceutical companies, this summit was an arena for knowledge exchange in the areas of R&D, strategic partnership and outsourcing, emerging technologies in drug manufacturing, custom synthesis, global leadership, and many more," organisers said.