The Hindu Business Line : Pharma cos bet big on supplements

PHARMACEUTICAL companies have now identified a new business segment in nutraceuticals and dietary supplements. Ranbaxy Laboratories Ltd, Torrent Pharmaceuticals, Cadila Pharmaceuticals, Nicholas Piramal India Ltd, Lupin Ltd and Panacea Biotec are just a few corporates that are eying this pie.

According to officials at Ranbaxy, "We see this segment as having growth potential." The nutraceuticals and dietary supplements mainly comprise multivitamins, minerals and protein supplements for joint care, heart, bones and skin. These could be both over-the-counter (OTC) as well as prescription products. Ranbaxy, for instance, has multi-vitamin brands such as Conviron and Reconia, while Nicholas Piramal's portfolio includes Becozym C Forte, Benadon and Supractiv.

It's not just the large pharma companies that are bullish, but even mid-sized pharma companies such as Cadila, Torrent and Lupin are firming up plans to foray into this segment. Mr J.P. Parswani, Vice-President, Marketing, Cadila Pharmaceuticals, said, "We are not present in this segment right now. But it is a segment of the future and we will firm up plans very soon." A Torrent Pharma official expressed a similar sentiment.

The market for nutraceuticals and dietary supplements is estimated to be about Rs 1,500 crore which could grow to about Rs 4,000-5,000 crore in two-three years. "The lifestyle of people is changing and there is a growing emphasis towards prevention rather than cure. With growing awareness, this category is set to grow," added Mr Parswani.

Market analysts said that this segment offers good margins to manufacturers, as several of these products are prescription-driven. "These products are not patent driven and, hence, companies find it easy to launch products. Also, the only cost involved would be that of brand building," they said.

The regulatory norms for entering this segment are also very weak. Unlike the US, where the Dietary Supplement Health and Education Act (DSHEA) is in place to regulate these products, in India the Government is in the process of drafting a law to regulate manufacturing, importing and marketing of health foods, dietary supplements and other nutraceuticals. There is a debate on whether this class of products should be classified as food or drugs,

Meanwhile, the Central Drug Control Department has put some structures in place for dietary supplements, but not all States have fallen in line. Some States have rejected the structures when their own rules and regulations conflict. This means companies interested in marketing dietary supplement products must categorise their products as either food or pharmaceuticals and take the necessary approvals.

Some companies such as Lupin and Panacea are using the nutraceutical segment to access international markets. "Herbal products cannot be launched as drugs in the West, they fall under the dietary supplement category," said a company official.

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