Indian pharmaceutical industry• The Indian pharmaceutical industry is the worlds second-largest by volume and is likely to lead the manufacturing sector of India.• The first pharmaceutical company are Bengal Chemicals and Pharmaceutical Works, which still exists today as one of 5 government-owned drug manufacturers, appeared in Calcutta in 1930.• The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970
WORLD SCENARIO• The global pharmaceutical market is estimated to represent a $48 billion opportunity for India by 2011, in terms of:• manufacturing outsourcing-supply of active pharmaceutical ingredients (APIs) and intermediates development outsourcing-conducting preclinical and clinical trials customized chemistry services-contract research services for compounds pre-launch.
INDIAN SCENARIOIndias pharmaceutical market grew at 15.7% during December 2011.globally, India ranks third in terms of manufacturing pharma products volume. The indian pharmaceutical industry is expected the grow at a rate of 9.9% till 2010 after that 9.5% till 2015
Emerging Trends & Opportunities• Geographic Convergence – Established and growing destination for Generic product development and manufacturing – Leading Indian companies seeking overseas markets and global scale• Generic – Innovator Convergence – Leading Indian companies trying to climb the value chain into innovative research – India developing into a Drug Discovery services outsourcing destination
Patents and generics• A chemical patent or pharmaceutical patent is a patent for an invention in the chemical or pharmaceuticals industry• Depending on a number of considerations, a company may apply for and be granted a patent for the drug
CSRIt is particularly difficult for pharmaceutical companiesto allocate its strategic resources necessary to CSRstrategies, due to so much of its funds are allocated forR&D and promotional activities, which are relativelyrisky in nature. The demand for its products is based onconsumer motivation, which can vary greatly amongstdifferent countries depending on the responsibilities ofconsumers, government and economies, and insurancecompanies or a mix of the three..
Challenges & Recommendations Challenges Low Government funding & lack of efficient execution of schemes & initiatives Shortfall in Health care infrastructure and Workforce Inadequate accessibility to affordable quality services Financial constraints with respect to infrastructural needs Recommendations Step-up in Government funding and initiatives via a special task force Implementation of REITs and increased use of Private-Private Partnership Models Addressing geographic accessibility through PPP and harnessing local resources Creating a Global Source of Skill Efficient dissemination of healthcare related information Establishment of Industry Body with adequate representation from all stakeholders 28
Key successful factors• Supplier/Partner mapping/selection – Capability / Keenness / Reliability / Competitiveness – Key team members – development, regulatory & commercial• Optimal Number of Partners – Strategic – markets/product lines – Opportunistic – product specific• Relationship management – Relationship oriented culture• Contract negotiation – Clear distribution of responsibilities and timelines – Demand performance - penalties for not meeting deliverables• Project management – Regular visits and video/teleconferences a must
RANBAXY SWOT ANALYSISSTRENGTHS: ➢ Low cost of production. ➢ Large pool of installed capacities ➢ Efficient technologies for large number of Generics.
• Large pool of skilled technical manpower.• ➢ Increasing liberalization of government policies
• WEAKNESS:• ➢ Fragmentation of installed capacities.• ➢ Low technology level of Capital Goods of this section.• ➢ Non-availability of major intermediaries for bulk drugs.• ➢ Lack of experience to exploit efficiently the new patent regime.
• OPPORTUNITY:• ➢ Aging of the world population.• ➢ Growing incomes.• Growing attention for health.• ➢ New diagnoses and new social diseases.• ➢ Spreading prophylactic approaches.• ➢ Saturation point of market is far away
• THREATS:• ➢ Containment of rising health-care cost.• High Cost of discovering new products and fewer discoveries.• ➢ Stricter registration procedures.• ➢ High entry cost in newer markets.• ➢ High cost of sales and marketing.