It was the year 2005 when India adopted patent regeime. The worst fear which was projected was that of loosing India's strength over pharmaceutical development and manufacturing capabilities. Much of that fear has already lost withn last 3 years. On the contarary, the MNCs operating in India from at least last 40 to 50 years have eroded their market captelisation. Pfizer, Novartis and Merck have all lost the glory of their past days operations in India. With nothing much to offer from their global new product basket, these companies continue to struggle over domestic pricing issues.
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The statistics is just a short term impact, but in the long run the pharma industry will see lot more mergers and acquistions. The Daichi sankyo and Ranbaxy deal is just the begining, as more and more of the indian generic manufactures would have to change their strategy from generics to innovative drugs... Though the companies may have the intellectual resources to innovate... they will always be restrained by financial constraints, as the returns in Pharma industry is on the long term side.
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