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Pharmaceutical

Novartis moving R&D from India to China

November 16, 2009
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Novartis has temporarily put its Indian operations on hold, while investing $1 billion in China for R&D work. The move may cost India greatly. Critics charge that the drug maker is leaving India due to its bad experience with Glivec in India. Glivec is Novartis''s new blockbuster cancer medication, which was denied a patent by both Bombay and Madras High Courts. The case is now pending in the Supreme Court of India, and Novartis''s future in India depends on the outcome of the case. If Novartis does indeed move R&D operations exclusively to China, with the current tensions between China and India, such activity may push the two to the brink of war. China blames, what they call, India''s economic jealousy for the recent reports in India that Chinese soldiers have breeched borders, which China asserts is totally false. The two nations have gone back and forth on these issues and tensions continue to mount. Perhaps the biggest potential impact will be in strengthening the message of the Maoist rebels in India. With jobs leaving democratic India for communist China, the Maoists will be given a stronger voice in their message of economic disparity and corruption of India''s system.

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