Indian quality woes point to generic drugs shake-out: Novartis

By Ben Hirschler and Caroline Copley BASEL, Switzerland (Reuters) – Recent manufacturing problems in India suggest some makers of generic drugs will struggle to compete in the face of a rising quality bar, pointing to a likely a shake-out in the low-cost sector, according to Novartis. Chief Executive Joe Jimenez said the Swiss group’s Sandoz unit – a world leader in making cheap off-patent medicines – was well placed to thrive in an era of tougher standards. “You’re talking about an industry where scale is going to become more important … I see this as a competitive advantage for a company like Novartis.” In recent months, the U.S. Food and Drug Administration, citing quality control problems ranging from data manipulation to sanitation, has banned the importation of products from Indian firms such as Ranbaxy Laboratories and Wockhardt.