In some cases, the government can forcibly authorize generic drug companies to legally copy and sell the same drug without the consent of the patent owner. Second, Indian pharmaceutical companies have strong research and development capabilities. According to the data of the US Food and Drug Administration (FDA), in the first half of 20 17, 40% of the generic drugs produced by Indian companies were approved. Nine months after a new drug goes on the market in the United States, a similar generic drug in India can be produced and enter the Indian market.
The third is the Drug Price Control Law (DPCO). Its main purpose is to set the price ceiling of bulk drugs and main preparations used in large quantities, so as to ensure that consumers can obtain drugs at lower prices and limit pharmaceutical companies from making higher profits on drugs. This practice has effectively reduced the price of drugs and blocked the business of foreign pharmaceutical companies in India.
Fourth, the cost is low. IBEF (Indian Brand Management Fund under the Indian Ministry of Commerce) reported that the production cost in India is nearly 33% lower than that in the United States, the labor cost is about half that in western countries, and the cost of building a factory in India is only 60% of that in the west. Five, professional talent team and management norms meet European and American standards. Most of India's generic drug management norms are implemented in accordance with the rules of the US FDA. In India, 546 pharmaceutical companies have passed FDA certification, and 2,633 drugs have passed FDA certification.