2. “The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.”Richard Gerster (Development Economist) http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
3. Some facts IPI is 3rd in terms of Volume & 14th in terms of Value. India Tops the world in exporting generic medicines worth USD 10 Bn. IPI is growing at a CAGR of around 13% annually. The Indian diagnostic services are growing at a CAGR of more than 20% annually. India has 20,000+ registered Pharmaceutical Units.
5. Key Characteristics of Indian Pharma Sector Self-reliance by the production of 70% of bulk drugs and the entire requirement of formulations within the country. Low cost of production. Low R&D costs. Innovative Scientific Manpower. Excellent and world-class national laboratories specialising in process development and cost effective technologies. Increasing balance of trade in pharma sector. An efficient and cost effective source for procuring generic drugs especially the drugs going off patent in the next few years. An excellent centre for clinical trials in view of the diversity in population.
7. Major Player FY2010 http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
8. Strengths Cost Competitiveness Well-developed industry with strong manufacturing base Well-established network of laboratories and R&D infrastructure Access to pool of highly trained scientists Strong marketing and distribution network Rich biodiversity Competencies in Chemistry and process development India has the largest number of US FDA approved plants outside US http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
9. Weaknesses Low investments in innovative R&D Lack of resources to compete with MNCs for new drug discovery research & to commercialize molecules on a world wide basis Inadequate regulatory standards Production of spurious and low quality drugs spoils the image of the industry in international arena http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
10. Opportunities Significant export potential Marketing alliances to sell MNC products in Indian market USD 4.0 Bn patents are getting off patent in Yr2012-15 Contract manufacturing agreements with the MNCs Potential for developing India as a centre for international clinical trials http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
11. Threats DPCO puts unrealistic ceilings on product prices & profitability Export effort hampered by procedural hurdles & non tariff barriers (NTB) imposed abroad Lowering of tariff protection http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/
12. What are the Growth Drivers if IPI…? Increasing incomes & healthcare expenditure Significant patent expiries in developed markets present good growth opportunities for Indian generic companies Emerging markets to become the next destinations for pharma companies. M&A a potential catalyst. Bio-similars – potentially a big long-term driver http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/
13. So, is there anything concern about..? Product pipeline drying up Patent expiries could cannibalise other generic molecules in India Big Pharma moving into generics US FDA delays, compliance issues (16-26Months) National Pharmaceuticals Policy 2006 (74D-354D) http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/
