Indian pharma cos welcome 'outsiders' to up global presence

Last few months saw some high profile changes in the managements of Indian pharma companies. Entirely promoter-controlled companies giving way to professional managements brought in from top multinationals to drive global ambitions, reports CNBC-TV18's Archana Shukla.

These legacy pharma companies, steered to their current massive scales by founder promoters, are now seeing a drift. Senior professionals from multinational pharma firms are taking up key positions at the Indian firms to help drive their next big leap.

The biggest move was Sun Pharma's Dilip Shanghvi stepping down as chairman last month to bring in ex-Teva chief Israel Makov, an attempt towards professionalizing the billion dollar drug firm and driving its global aspirations. In the latest conference call Dilip Shanghvi said, "As Sun Pharma continues to rapidly expand its presence worldwide, I am sure that we will benefit immensely from Israel Makov's experience."

In April this year Shanghvi also stepped down from subsidiary Taro Pharma's chairmanship appointing S Kalyansundaram for the top job. Kalyansundaram, an ex-GSK top gun was the first outsider to be inducted as chief executive officer of Sun Pharma in 2010.

Winds of change are blowing at old pharma firms too, With Cipla roping in ex-Teva senior vice president Frank Pieters to head its key European business and the respiratory medicine portfolio. Cipla chief managing director Yusuf Hamied in a statement said, "This appointment signals Cipla's strengthening of senior management positions and also illustrates its desire for senior on-ground talent in overseas markets to build its product portfolio and brand."

In other examples of high-profile global executives switching allegiance to Indian firms, we saw Eli Lily's India head Sandeep Gupta move to Glenmark Pharma as chief operating officer last year, while in 2010 Lilly's senior director of global anti-counterfeiting operations Rajiv Gulati had joined Ranbaxy Laboratories as president

While the last generation of CEO's had the vision and built companies passionately, the next generation will need smarter strategies and a global approach to grow in the fiercely competitive environment and here is where these top multinational guys could play a crucial role with their experience in large global operations and knowledge of marketing innovative branded drugs. The hope is they will help recreate their global successes for aspiring Indian firms.