Pharmaceutical industry pestel analysis


Published on

Published in: Business, News & Politics

Pharmaceutical industry pestel analysis

  2. 2. 1. Introduction 2. About Indian Pharma industries 3. Growth of Pharma industries 4. Key players 5. PESTELEE Analysis
  3. 3. INTRODUCTION  Rapid Growing sectors of the Indian economy.  Producer of low cost high quality bulk drugs and formulations.  The total market size of Rs. 1,233 bn ( domestic Rs.600 bn~48.6%) and exports Rs. 633 bn ~51.4%).  The industry grew at a CAGR of ~12.5% during the past five years and is expected to growth at a robust  CAGR of 15.1% during FY2012-17 given huge export potential.  Steady growth in the domestic formulation market.
  4. 4. GROWTH OF THE INDUSTRY  Worth of the Pharma industry – $ 6 billion  Accounts for - 1% of the world's Pharma industry in value terms and 8% in volume terms. .  Revenues generated - US$ 7.6 bn and have grown at an average rate of 10% over last five years  India is now among the top five pharmaceutical emerging markets  expected to grow five-fold to reach Rs 5 lakh crore (US$ 91.45 billion) by 2020
  5. 5. Ranbaxy* Dr. Reddy's Cipla Lupin Nicholas Piramal Sun Pharmaceuticals GSK Cadila Healthcare Aurobindo Wockhardt* Key players in pharmaceutical industries
  6. 6. PESTEL ANALYSIS  A PEST analysis is concerned with the environmental influences on a business.  The acronym stands for the Political, Economic, Social and Technological  These issues affect the strategic development of a business.  Identifying PEST influences is a useful way of summarizing the external environment in which a business operates
  7. 7. POLITICAL  There is now growing political focus and pressure on healthcare authorities across the world. This means that governments will be looking for savings across the board. -What pressures will be put on pricing? -What services will be cut? -Will the same selection of drugs be available to everyone?  Political uncertainty – no consistent policy.  Stringent Price Control .
  8. 8. SOCIAL  The increasing aging population offers a range of opportunities and threats, trick will be to capitalize on the opportunities.  There is also the problem of the increasing obesity amongst the population and its associated health risks.  Patients and home carers are becoming more informed. Their expectations have changed and they have become more demanding.  Public activism has also increased through the harnessing of new social networking technologies.  How can pharmaceutical companies get closer to consumers without over stepping the regulatory boundaries?
  9. 9. ECONOMICAL  The global economic crisis still exists yet government reports still show that the spend on healthcare per capital continues to grow.  The reduction in consumer disposable income will have an impact on those countries using health insurance models particularly where part payment is required.  These economic pressures are seeing an increased growth in strategic buying groups who are forcing down prices.  Increased pressure from shareholders has caused a consolidation of the industry: more mergers and acquisitions will take place over the coming years.
  10. 10. TECHNOLOGICAL  Technological advancements will create new business prospects both in terms of new therapy systems and service provisions. The online opportunities will see the growth in:  New info and Communications technologies.  Social Media for Healthcare.  Customized Treatments.  Direct to Patient Advertising.  Direct to patient communications.
  11. 11. ENVIRONMENTAL  There is a growing environmental agenda and the key stake holders are now becoming more aware of the need for businesses to be more proactive in this field.  Pharma companies need to see how their business and marketing plans link in with the environmental issues.  There is also an opportunity to incorporate it within their Corporate Social Responsibility programmes. Marketing and new product development should identify eco opportunities to promote as well.
  12. 12. Strengths :- 1.Cost Competitiveness 2 Developed Industry with Strong Manufacturing Base 3.Well Established R&D infrastructure 4. Access to pool of highly trained scientists, Opportunities :- 1. Significant export potential. 2. Marketing alliances for MNC products in domestic market and international market. 3.Contract manufacturing arrangements with MNCs Weaknesses:- 1. Low investments in innovative R&D. 2. Lack of resources to compete with MNCs for New Drug Discovery & Research 3. Lack of strong linkages between industry and academia. Threats :- 1.Product patent regime poses serious challenge to domestic industry unless it invests in research and development 2. R&D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement 3. Export effort hampered by procedural hurdles in India as well as non-tariff barriers imposed abroad.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.