In a decisive move, pharmaceutical giant AstraZeneca Pharma has announced its departure from manufacturing activities at its singular plant in Bangalore, marking a pivotal decision in the context of a comprehensive ‘global strategic review.’ With revenues surpassing Rs 1,000 crore, the company discerns an enhanced value proposition for its shareholders by transitioning core manufacturing responsibilities to a contracted manufacturer, as per sources informed TOI.
Responding to inquiries, a spokesperson for the company stated, “This represents our exclusive manufacturing site in India, predominantly catering to primary care products for the domestic market. Our commitment remains unwavering to facilitate access to groundbreaking medicines in India, with a distinct ambition to pioneer in science, lead in specialist disease domains, and revolutionize patient outcomes.” On Thursday, the company’s stock exhibited an uptick of over 1%, closing at Rs 4654 on BSE.
This strategic maneuver mirrors a broader trend wherein multinational corporations find themselves challenged in the fiercely competitive domestic pharmaceutical landscape, largely dominated by Indian industry giants. Over recent months, indigenous companies have experienced nearly double the growth rate of their multinational counterparts. The latter, in response, has undergone operational restructuring by either downsizing exposure and sales forces or divesting brands in the country. Some have even exited research and development initiatives on Indian soil.
AstraZeneca India intends to position the manufacturing facility for sale in a fully operational state and initiate a quest for a buyer. The chosen entity would also function as a contract manufacturing organization for products currently manufactured or packaged at this site, subject to obtaining requisite statutory approvals.
The company envisions a heightened focus on Research and Development activities in Bangalore, along with the establishment of an Information Technology and Global Capability Center in Chennai.
