Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-20T08:45:24.275Z Has data issue: false hasContentIssue false

8 - Emerging Pharmaceutical Companies from China, India, and Brazil

From Generic Drugs to Innovation Strategies

from Part II - Types of Innovation in Emerging Markets

Published online by Cambridge University Press:  15 March 2021

By
Fernanda Cahen
Edited by
Fernanda Cahen ,
Lourdes Casanova  and
Anne Miroux
Fernanda Cahen
Affiliation:
Centro Universitario FEI, Brazil
Lourdes Casanova
Affiliation:
Cornell University, New York
Anne Miroux
Affiliation:
Cornell University, New York
Get access

Summary

This chapter presents the evolution of the pharmaceutical industry in the emerging world. It draws on firm-level cases in three of the largest pharmaceutical markets: China (2), Brazil (6) and India (11). Pharmaceutical companies in these countries have emerged as leaders in the generic segment and some are making remarkable strides towards innovation strategies. China’s Jiangsu Hengrui Medicine, India’s Sun Pharma, and Brazil’s Eurofarma are suggestive of the shift toward innovation. These companies have evolved from copycats to creative imitators and recently have been moving up the value chain in pharmaceutical R&D.

Keywords

Pharmaceutical companiesgeneric drugsinnovation strategiesChinaIndiaBrazil
Type
Chapter
Information
Innovation from Emerging Markets
From Copycats to Leaders
 , pp. 222 - 255
Publisher: Cambridge University Press
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bartlett, C. A., & Ghoshal, S. (2000). Going global: Lessons from late movers. Reading, 1(3), 75–84.Google Scholar
Bhagavatula, S., Mudambi, R., & Murmann, J. P. (2019). Innovation and entrepreneurship in India: An overview. Management and Organization Review, 15(3), 467–493.Google Scholar
Brandl, K., Mudambi, R., & Scalera, V. G. (2015). The spectacular rise of the Indian pharmaceutical industry. Entrepreneur & Innovation Exchange. Retrieved November 2019, from https://eiexchange.com/content/111-the-spectacular-rise-of-the-indian-pharmaceutical-industry.Google Scholar
Cahen, F., & Oliveira, M. M., Jr. (2017). Brazilian multinationals, moving ahead. In Casanova, L. & Miroux, A. (Eds.), Emerging multinationals in a changing world. Emerging Market Multinationals Report (EMR) (pp. 90–111). Retrieved November 2019, from www.johnson.cornell.edu/Portals/32/EMI percent20Docu/EMR/Emerging percent20Multinationals percent20in percent20a percent20Changing percent20World.pdf.Google Scholar
Caliari, T., & Ruiz, R. M. (2013). Brazilian pharmaceutical industry and generic drugs policy: Impacts on structure and innovation and recent developments. Science and Public Policy, 41(2), 245–256.Google Scholar
Choudhury, P., & Khanna, T. (2014). Toward resource independence: Why state-owned entities become multinationals: An empirical study of India‘s public R&D laboratories. Journal of International Business Studies, 45(8), 943–960.Google Scholar
Deloitte. (2019). Global life sciences outlook. Retrieved November 2019, from www2.deloitte.com/global/en/pages/life-sciences-and-healthcare/articles/global-life-sciences-sector-outlook.html.Google Scholar
Dutta, S., Lanvin, B., & Wunsch-Vincent, S. (Eds.). (2019). Global innovation index 2019: Creating healthy lives – the future of medical innovation. Ithaca, Fontainebleau, and Geneva: Cornell, INSEAD, and WIPO.Google Scholar
Eurofarma. (2016, 2019). Annual Reports. Retrieved November 2019, from www.eurofarma.com.br/relatorio-anual/.Google Scholar
European Innovation Scoreboard. (2019). Retrieved November 2019, from: https://interactivetool.eu/EIS/EIS_2.html.Google Scholar
Fonseca, E. M. (2018). How can a policy foster local pharmaceutical production and still protect public health? Lessons from the health–industry complex in Brazil. Global Public Health, 13(4), 489–502.Google Scholar
Forbes. (2019). Global 2000 – The world’s largest public companies. Retrieved November 2019, from www.forbes.com/global2000/#5603c1ae335d.Google Scholar
Fortune. (2019). Jiangsu Hengrui Medicine. Retrieved November 2019, from https://fortune.com/future-50/2019/jiangsu-hengrui-medicine/.Google Scholar
Gassmann, O., Schuhmacher, A., von Zedtwitz, M., & Reepmeyer, G. (2018). Leading pharmaceutical innovation: How to win the life science race. Cham, CH: Springer.Google Scholar
Ghemawat, P., & Kothavala, K. (1996). Repositioning Ranbaxy. Case Study N9-796-181. Cambridge, MA: Harvard Business School.Google Scholar
Guennif, S., & Ramani, S. V. (2012). Explaining divergence in catching-up in pharma between India and Brazil using the NSI framework. Research Policy, 41(2), 430–441.Google Scholar
IBEF – India Brand Equity Foundation. (2019). Indian pharmaceutical industry. Retrieved November 2019, from www.ibef.org/industry/pharmaceutical-india.aspx.Google Scholar
IMS Health. (2014). Pharmerging markets – picking a pathway to success [White Paper]. Retrieved November 2019, from www.pharmatalents.es/assets/files/Pharmerging_white_paper_06_2013.pdf.Google Scholar
IPA – Indian Pharmaceutical Association. (2019). The Indian pharmaceutical industry – the way forward. Retrieved November 2019, from www.ipa-india.org/static-files/pdf/publications/position-papers/2019/ipa-way-forward.pdf.Google Scholar
IQVIA. (2019, October 21). Growth perspectives for the Pharma market. IQVIA Market Prognosis Team. Retrieved November 2019, from www.iqvia.com/blogs/2019/10/growth-perspectives-for-the-pharma-market.Google Scholar
Jiangsu Hengrui Medicine. (2019). Company profile. Retrieved November 2019, from www.hrs.com.cn/hren/About_hr_company.html.Google Scholar
Kale, D., & Little, S. (2007). From imitation to innovation: The evolution of R&D capabilities and learning processes in the Indian pharmaceutical industry. Technology Analysis & Strategic Management, 19(5), 589–609.Google Scholar
Krishnan, R. T., & Prashantham, S. (2019). Innovation in and from India: The who, where, what, and when. Global Strategy Journal, 9(3), 357–377.Google Scholar
Lorenzetti, L. (2015). Why drug companies are betting big on “pharmerging” countries. Retrieved November 2019, from https://fortune.com/2015/08/14/drug-companies-pharmerging-countries/.Google Scholar
Luo, Y., Sun, J., & Wang, S. L. (2011). Emerging economy copycats: Capability, environment, and strategy. The Academy of Management Perspectives, 25(2), 37–56.Google Scholar
Malerba, F., & Orsenigo, L. (2002). Innovation and market structure in the dynamics of the pharmaceutical industry and biotechnology: Towards a history‐friendly model. Industrial and Corporate Change, 11(4), 667–703.Google Scholar
Munos, B. (2009). Lessons from 60 years of pharmaceutical innovation. Nature Reviews, 8(12), 959–968.Google Scholar
Perri, A., Scalera, V. G., & Mudambi, R. (2017). What are the most promising conduits for foreign knowledge inflows? Innovation networks in the Chinese pharmaceutical industry. Industrial and Corporate Change, 26(2), 333–355.Google Scholar
Pharmexcil Report. (2019). 15th Annual Report, 2018–2019. Retrieved November 2019, from https://pharmexcil.com/uploadfile/ufiles/AnnualReport05092019.pdf.Google Scholar
Prud’homme, D., & von Zedtwitz, M. (2018). The changing face of innovation in China. MIT Sloan Management Review, 59(4), 24–32.Google Scholar
PwC. (2019, April). M&A 2018 review for China pharmaceutical and medical device sectors. Retrieved November 2019, from www.pwccn.com/en/industries/pharmaceuticals-and-life-sciences/publications/ma-2018-review-for-china-pharmaceutical-and-medical-device-sector.html.Google Scholar
Ramachandran, J., Manukonda, S., & Awate, K. (2016). Ranbaxy Laboratories Limited: Changing aspirations. Teaching Case. Harvard Business Publishing Education. Retrieved November 2019, from https://hbsp.harvard.edu/product/IMB601-PDF-ENG.Google Scholar
Sahasranamam, S., Rentala, S., & Rose, E. (2019). Knowledge sources and international business activity in a changing innovation ecosystem: A study of the Indian pharmaceutical industry. Management and Organization Review, 15(3), 595–614.Google Scholar
Scannell, J. W., Blanckley, A., Boldon, H., & Warrington, B. (2012). Diagnosing the decline in pharmaceutical R&D efficiency. Nature Reviews, 11(3), 191–200.Google Scholar
Sindusfarma. (2018). Profile of the pharmaceutical industry in Brazil and relevant sector aspects. São Paulo. Retrieved November 2019, from https://sindusfarma.org.br/Perfil-IF2018--20-07-INGLES.pdf.Google Scholar
Sun Pharmaceutical Industries Ltd. (2019). Annual Report 2018–2019. Specialty in Progress. Retrieved November 2019, from www.sunpharma.com/sites/default/files/annual/Complete percent20Annual percent20Report.pdf.Google Scholar
Tremblay, J. F. (2017). For Chinese drugmaker Hengrui, R&D plans pan out – Ambitious program to launch innovative drugs starts to pay off for generics producer. Chemical & Engineering News, 95(29), 24–25. Retrieved November 2019, from https://cen.acs.org/articles/95/i29/Chinese-drugmaker-Hengrui-RD-plans.html.Google Scholar
von Zedtwitz, M., & Gassmann, O. (2016). Global corporate R&D to and from emerging countries. In Dutta, S., Lanvin, B., & Wunsch-Vincent, S. (Eds.), The Global Innovation Index 2016 (pp. 125–131). Ithaca, NY: Cornell University.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×