India startup Eywa enters US pharma market

India startup Eywa enters US pharma market

10:00 AM, 26th August 2019
Eywa Pharma logo

MUMBAI, INDIA: As India’s largest drugmakers stare at an uncertain future in the US, a small startup funded by Chennai-based Shriram Group and Eight Roads Ventures (of Fidelity Investments) thinks that it has spotted a market that has remained unseen by leading pharma companies.

Eywa Pharma, based in Chennai, India and with offices in New Jersey, is the new pharma kid on the block that is entering the US market — considered the world’s largest, with products that have a total value of $1 billion.

“When we set up our company, we knew that the customer base in US was consolidating, but what we hadn’t considered was the extent of consolidation that was setting in among generic companies. This is where we saw an opportunity for smaller players to come in,” said Srinivasan S, cofounder of Eywa Pharma.

Eywa founders were earlier part of US drugmaker Mylan before they took on entrepreneurship.

And that’s why Eywa, despite its limited portfolio of 26 filed applications across therapy areas of which 13 have been approved, is confident of cracking the market. The competition for these products includes just 3-4 players.

Eywa’s business model is not about becoming a licencing firm, but rather a front-end generic drugmaker. According to its founders, this was done in case the firm had to add products quickly in the market; otherwise customers wouldn’t show interest if they launch just one or two products.

The firm’s optimism is startling as most trends show that there is a slowdown in the US for generic drugmakers. A report by consulting firm IQVIA stated that despite the generics market growing from $47 billion in 2012 to $71 billion in 2017, the annual growth rate has been constantly shrinking — from 22.8% in 2013 to 0.8% in 2016.

“The trend is likely to continue for the next few years with even negative growth rates before the market stabilizes and comes back on track by around 2020,” IQVIA said.

The consultancy firm has also warned that while all generic companies are vulnerable to pricing pressure, it believes that the smaller sized players and new entrants will be most affected due to their vanilla portfolios.

The lure of the US markets for Indian generic makers is an old one. After all with no price control and Indian companies ability to churn out generic drug has made them leaders in the drug formulation business. Companies like Cipla which was an India focused company five years ago decided to enter the US market with acquisition.

Mankind Pharma too in 2016 decided to enter the US market with an investment of Rs 300 crore.

Source: Economic Times

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


Scientists create low-calorie "butter" spread made mostly of water

NEW YORK, US: Cornell University food scientists have created a new low-calorie 'butter' spread that consists mostly of water. A tablespoon of this lo ...

Read more
PMC Capital completes acquisition of StyroChem Canada

QUEBEC CITY, CANADA: PMC Capital Group LLC has completed the acquisition of StyroChem Canada Ltd (StyroChem) from WinCup Inc, a leading manufactu ...

Read more
MBA Polymers takes over e-waste recycling plant in Germany

RICHMOND, US: MBA Polymers Inc took over a new production site in Mauna near Dresden, Germany. The site in Germany is held by the subsidiary MBA Polym ...

Read more
Alliance to End Plastic Waste appoints former UN exec as CEO

WASHINGTON, US: The Alliance to End Plastic Waste (AEPW) announced that Jacob Duer will serve as the inaugural President and CEO of the ...

Read more
Dulux Paints by PPG unveils cobalt blue as 2020 Colour of the Year

TORONTO, CANADA: Dulux Paints by PPG Industries unveils its 2020 Colour of the Year – Chinese Porcelain (DLX1160-6). This rich and tra ...

Read more
Glenmark in talks to sell up to 30% in API biz to PremjiInvest

MUMBAI, INDIA: Glenmark Pharma is engaged in discussions with private equity fund PremjiInvest to sell 25-30% stake in Glenmark Life Sciences (GLS), t ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X