Abbott plans to establish its first nutrition research and development centre in the country in collaboration with Syngene, a subsidiary of Biocon. The Abbott nutrition R&D centre in India will focus on the development of science-based, affordable nutrition products for the country and enable the expansion of Abbott’s nutrition product portfolio there.
This announcement comes soon after another big pharma player, Pfizer, has announced that it is selling out its infant food nutrition business to Nestlé for $11.85 billion. Pfizer Nutrition generates about 85 percent of its sales from emerging markets and this move is being seen as Nestle’s strategy to gain immediate traction in these lucrative markets.
The two deals display differing strategies used by MNC pharma players; while Pfizer is divesting profitable non-core businesses to invest in its core business, Abbott is preparing to invest in its nutrition business, seeing the opportunity to make up loss of revenue from blockbusters going off patent. Both deals have been inked with an emerging markets strategy.
Abbott selected Syngene to provide a science-based research and innovation team to work closely with Abbott researchers. More than 50 researchers and scientists will be based at the Abbott nutrition R&D centre in India at Biocon Park in Bangalore, which is expected to open in June 2012.
The new R&D centre will focus on the development of nutrition products for maternal and child nutrition and diabetes care. Preventing under nutrition has emerged as one of the most critical health challenges in India. An estimated 50 per cent of Indians (570 million people) have adequate calorie intake but are not consuming a sufficient level of essential nutrients. India also has the world’s largest diabetes population, with an estimated 51 million people living with diabetes. Among the products being developed for the Indian market are meal complements for diabetics and pre-diabetics. In addition, the centre will address local taste and texture preferences with new flavours and formulations.
“India is a priority market for investment, growth and innovation,” said Robert H. Miller, Divisional Vice President, Global R&D and Scientific Affairs for Abbott Nutrition. “Our strategic collaboration with Syngene will accelerate the design, development and delivery of science-based, affordable nutrition products in India, for India.”
“Health care in India has reached a tipping point as patients seek quality care and products at affordable prices,” said Rehan Khan, Managing Director, Abbott Nutrition India. “We have consistently invested in India, and this world-class R&D centre will allow us to leverage local expertise and insights to develop the products we need to successfully expand our portfolio here.”
The nutrition market in India is relatively new and growing steadily. In addition to the under nutrition and diabetes issues facing India, a rapidly expanding middle class and ageing population are driving increased demand in the country for high-quality, affordable nutrition products.
“With malnutrition and common chronic diseases at their highest in this region, Abbott and Syngene have a common vision and commitment to support the development of a healthier India,” said Kiran Mazumdar-Shaw, founder, chairman and managing director, Biocon Group. “The combined market insights and nutrition science expertise of our two organisations will enable us to address these immediate needs by developing critically important, innovative yet affordable nutrition products for the Indian population.”
Peter Bains, director, Syngene and Clinigene said, “We are extremely delighted to partner with Abbott for this synergistic collaboration for its nutrition business. Our objective will be to develop new products for Abbott’s nutrition portfolio. This symbolises Syngene’s growing capability to offer science-based research and development solutions across a wide range of life science platforms.”
EP News Bureau