Wrong to say USFDA has been unduly harsh on Indian pharma: Piramal
The USFDA has strong reasons for most of the actions against the Indian pharma industry, says Ajay Piramal, Chairman, Piramal Group . Excerpts from his interview with ETNow.
ET Now: Are the USFDA actions becoming too much of a headache for the pharma sector?
Ajay Piramal: Yes, I do not think the USFDA has been unnecessarily harsh on Indian plants. I think they do this across the board. If you see, some of the observations they make for some of the FDA stoppages that they have done, these are all public. So, there is nothing. Some of them are really strong reasons why they have done it.
ET Now: You are still very bullish on Indian pharma. For example, you are betting big on inorganic growth. But when you read the statements coming out of the United States where the President is talking particularly about the pharmaceutical industry bringing down prices and manufacturing more in America, is it forcing companies like yours to reorganise plans, to rethink business plans?
Ajay Piramal: We have always had a global organisation. We have several plants that are doing manufacturing in the US. Last year we spent about $350 million investing in the US in acquisition of plants. We have more than 2,000 people working in the US. We have always been global and whatever is happening now with Trump’s announcements, they are not going to affect us any which way. If his view is that there should be more Make-in-America, then we have done that.
ET Now: We at Economic Times and ET Now have always called you one of the most maverick investors out there. Everything you touch turns into gold. I want to get your views on the Vodafone-Idea merger. There is no one you do not know on either side over there. It will be interesting to get your thoughts on that. It is something you have been associated with as well.
Ajay Piramal: I think this is a reaction to what is happening in the market place with the launch of Reliance Jio. All the incumbents were feeling that here is a giant which has come to the room and they have to react and, therefore, you see Bharti is doing acquisitions and Idea and Vodafone wanting to do acquisitions so that when they have size and they will be able to have a larger network on one side without any further investment because they already I think both of them are looking for investment and also it will help them bring down cost. It is really a reaction to what is happening in the market place.
ET Now: How many players do you think we will be left with – three or two?
Ajay Piramal: I am not an expert in that, probably I think there will be three players.
ET Now: Are the USFDA actions becoming too much of a headache for the pharma sector?
Ajay Piramal: Yes, I do not think the USFDA has been unnecessarily harsh on Indian plants. I think they do this across the board. If you see, some of the observations they make for some of the FDA stoppages that they have done, these are all public. So, there is nothing. Some of them are really strong reasons why they have done it.
ET Now: You are still very bullish on Indian pharma. For example, you are betting big on inorganic growth. But when you read the statements coming out of the United States where the President is talking particularly about the pharmaceutical industry bringing down prices and manufacturing more in America, is it forcing companies like yours to reorganise plans, to rethink business plans?
Ajay Piramal: We have always had a global organisation. We have several plants that are doing manufacturing in the US. Last year we spent about $350 million investing in the US in acquisition of plants. We have more than 2,000 people working in the US. We have always been global and whatever is happening now with Trump’s announcements, they are not going to affect us any which way. If his view is that there should be more Make-in-America, then we have done that.
ET Now: We at Economic Times and ET Now have always called you one of the most maverick investors out there. Everything you touch turns into gold. I want to get your views on the Vodafone-Idea merger. There is no one you do not know on either side over there. It will be interesting to get your thoughts on that. It is something you have been associated with as well.
Ajay Piramal: I think this is a reaction to what is happening in the market place with the launch of Reliance Jio. All the incumbents were feeling that here is a giant which has come to the room and they have to react and, therefore, you see Bharti is doing acquisitions and Idea and Vodafone wanting to do acquisitions so that when they have size and they will be able to have a larger network on one side without any further investment because they already I think both of them are looking for investment and also it will help them bring down cost. It is really a reaction to what is happening in the market place.
ET Now: How many players do you think we will be left with – three or two?
Ajay Piramal: I am not an expert in that, probably I think there will be three players.
