GSK
has a vaccine filling facility coming up at Nasik. What made GSK look at Nasik
when companies are looking at setting up units in Haryana, J&K and Himachal
Pradesh for tax benefits?
In Nasik, we have a major pharmaceutical facility with 800 strong people.
They have the experience and expertise in different areas including those like
the vaccines. Vaccines are technology intensive products and our efforts will be
to produce high quality vaccines.
What is the capacity of your upcoming facility at
Nasik?
Our factory is capable of delivering vaccines to all children in the
country. That is the capability we are creating at Nasik. GSK is able to
manufacture and sell vaccines to the tune of 1.5 billion doses. If you look at
the global population with newborn babies of 120 million, even if you assume 80
percent of our 1.5 billion doses goes to children, then every child will
probably be consuming 8-10 doses of GSK vaccines. We are not only selling for
children but also for adults.
Your focus is on self-pay market and not on
government organizations. With this new plant coming up, will you be looking at
the government agencies?
We have a number of vaccines. For example, Hepatitis B vaccines have now
been introduced under the immunization program in India. Similarly, in other
developing countries including China, it has been included in the immunization
program. Our next vaccine is Rotarix to prevent rotavirus gastroenteritis in
children. Hundreds and thousands of the children die due to this virus in India.
We have a number of other vaccines including Hiberix (a Haemophilus influenzae
type b vaccine) - a vaccination for infants from the age of six weeks onwards
against Hib. The newborns will benefit through the immunization program. The
facility will open up a window of opportunities for us as it has the
capabilities to manufacture these vaccines.
Globally our spirit is public-private partnership. In India also our commitment is the same as our global spirit. There is no change in it. We are actually working with the government on a number of programs, which will fulfill our current government's vision too. We have a lot of opportunities in India and we can play a good role in fulfilling the government's vision.
What is GSK's investment for this new vaccine
facility?
In Nasik, we are sharing a lot of the core facilities with the existing
pharmaceutical facility. If we want to set up a stand-alone facility, which can
meet the global standards, it requires at least about $20 million.
At the foundation stone laying ceremony, you noted
that the new facility reflects GSK's commitment to India. Does it mean that
whatever the plant produces, will be used to meet only the needs in India or are
you looking at exports as well?
Again my reply is the same. We have long-term commitment to India through
vaccines. By putting up the facility, we are saying that we do cater to the
needs of India. Having said that if you look at the entire population of the
South East Asia, it will be half a billion. So covering exports is no more an
added benefit. The fundamental focus and justification is the Indian market. We
will also keep the exports option in mind and as and when it comes, we will look
into it.
Indian pharmaceutical companies are looking at
exports as money-spinners. Considering this, will GSK look at export of vaccines
as core opportunity?
There is a difference between the Indian companies and GSK. If you look at
Indian companies most of them are transnational companies - originated in
India and headquartered in India. We are a subsidiary and an arm of a global
company with focus on India. So the business model will vary with different
organizations. Again India will be our focus. But exports will be added
benefits.
Who do you see as your competition-MNCs or the
Indian companies?
I respect all our competitors. Each one will have distinguished advantages.
If you look at companies in the same range of product portfolio, they all follow
the same marketing strategy. They will have the same work culture. Hence they
are our competitors. If you look at the Indian companies, they may not have a
comprehensive product portfolio of vaccines. But you know what they did in the
case of Hepatitis B. The entry has brought the prices of vaccines down.
So both of them offer different types of opportunities and challenges. That is why I am saying MNCs-Aventis already has a wide range products, Chiron has its presence in India with a manufacturing facility, and Merck may come in the future-are our competitors. In India you have Serum Institute of India and Panacea Biotec. For different reasons Indian companies, unlike MNCs who have very large portfolio, have their own strategies. They manage it quite well. It can damage some of our opportunities. I think they are competitors. We take on every company with due respect.
What is this "Famili Vaccines" concept
that GSK introduced last year in India?
We are very happy that this world-class concept was implemented in India a
couple of years ago by GSK. It is a long-term market development program, which
brings interaction between mother and doctor. It is a highly innovative concept.
We have a range of vaccines for the entire family. Normally in a family, the
mother takes care of the health of the entire family. So she will get the
relevant information about the range of vaccines a family needs under this
public-private program.
What is the revenue you are looking at from your
vaccines business?
The revenue of GSK vaccines in India is over Rs 100 crore. It is growing
more than the growth of the pharmaceutical section. In the last three years, it
has been growing at a rate of 20 percent. And it is expected to grow more than
this as we have about a half dozen products in line for introduction in the
coming few years.
Narayan Kulkarni
