India to be global R&D hub for Johnson & Johnson

In India, Johnson & Johnson is seen mainly as a consumer company. But it is now ramping up its pharmaceutical activities to make India a global hub for research and development.

Johnson & Johnson is working hard to develop India as a global R&D hub. This USD 8 million R&D lab will be followed by a pharmaceutical development building that will come up by end 2008, with a USD 9 million investment, are some steps for its growth.

J&J currently sources around 15% of its active ingredients requirements, worth USD 30 million for its drugs and now it plans to strike alliance with Indian companies for R&D activities and also to develop drugs.

Chairman, Worldwide R&D, Paul Stoffels, at  Johnson&Johnson, says, "Being here in Mumbai, we can start collaboration with academic institutions as well as biotech and larger pharma groups. It's absolutely our intention to have several of these collaborations over the coming years."

This new R&D centre will develop and test formulations for J&J's new drugs, not only for the Indian market but its US and European markets as well. It is currently doing development work for its HIV drug Prezista, which will be marketed in India.

Prezista may be followed by two more HIV drugs that will be introduced by 2010.  Janssen Cilag plans to market all of its new drugs in India in the areas of epilepsy and multi-drug resistant antibiotics. India contributes around USD 40 million to J&J's USD 25 billion pharma business, but the company hopes to increase it with the new investments and integration of its activities.

Ajit Shetty, President, Global Chemical and Pharmaceutical Operations, says, "If you look at intergration of R&D, operations and other activities, in India there's a tremendous talent pool, which would help us in becoming more effective globally."

So, integration of activities and new collaboration in India is what J&J recommends for itself, to become healthier.