GAIL explores pharma opportunities

Vol 24, PW 12 (06 May 21) News in Brief
       

In a departure from its core business, GAIL is considering a plunge into the pharmaceutical industry.

On March 25 (2021), GAIL issued a Fax of Acceptance (FoA) to Mumbai-based IQVIA Consulting to prepare a business plan in the Active Pharmaceutical Ingredient (API) used in medicines in a contract valued at Rs1.1cr ($149,000). GAIL and IQVIA sources both confirm the award.

"Work has begun," confirms GAIL. "The final (IQVIA) study will come in July (2021)."

IQVIA will prepare three separate reports for GAIL. In Phase-I, IQVIA will detail the demand and supply market landscape of API in a report submitted in four weeks.

In Phase-IIA, GAIL wants IQVIA to prepare a competitor analysis, M&A potential and supply chain management report to be submitted after 11 weeks. For phase-IIB, GAIL wants IQVIA to carry out a detailed assessment and propose a business plan by the end of week 16.

In its report, IQVIA will also assess the market demand and supply for API. Along with local demand and supply, IQVIA must also analyse global supply and demand.

"We would also like to explore export possibilities," adds GAIL. "At GAIL, we are trying to explore different areas where we can diversify; this area is just one of them."