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Drug firms set to cash in on patent phase-out

...Analysts said the cheaper generic versions almost invariably hit the market less than three months after the patent of the original drug expires.

The highly competitive market has triggered several lawsuits, making them an integral part of the global generic drug business due to the high stakes involved.

A company like Ranbaxy spent about $20 million on cases of patent challenges last year.

Analysts feel that companies would not shy away from litigation because of the size of the gains in case of a win.

They said the patent portfolio of some of the traditional pharmaceutical companies indicate that their in-house technical competence is inadequate to meet the threat from global generic drug manufacturers such as Ranbaxy, which are fiercely targeting the large domain of off-patent drugs.

Analysts said in the new regime, several Indian companies have shown signs of a transition from being generic drug manufacturers to innovators.

These firms are also focusing on basic research in search for new molecules.

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