1. The global pharmaceutical market reached $942 billion in 2011 and is expected to reach $1.12 trillion by 2022 due to population growth and an aging population. 2. The Indian pharmaceutical market is estimated to reach $55 billion by 2020, growing faster than the global market, and will be dominated by drugs for non-communicable diseases. 3. The growth of the pharmaceutical industry in both global and Indian markets is driven by increasing healthcare spending, rising incomes, and a shift toward specialty and chronic disease drugs.

2. Human being lives in a whirlpool of Industries

3. The Pedestal is made of Pharmaceutical Industry

4. Pharmaceutical Industry the propeller for other Industries

5. The global sales of medicines reached
$942 billion in 2011, which was a 5.1%
increase on the previous year
0
200
400
600
800
1000
2003 2004 2005 2006 2007 2008 2009 2010 2011
US$Bn Year
Total World Market Size
This total is expected to reach
$1.12 trillion by 2022, due to
an increase in population of 7.6
billion people, 13% of which will
be over 60.
A move to value-based outcomes in
drug development, increased
penetration of specialty drugs, and the
continued rise of emerging markets are
key trends shaping the global
pharmaceutical market.

6. Prescription sales excluding generics will rise 4.4% this
year, and will reach $1.006 trillion in 2022. Generics
sales will increase from $73 billion in 2015 to $115
billion in 2022, and constitute 10.2% of prescription
sales at that point

7.  The outlook for the global
pharmaceutical market is marked
by greater cost pressures and a
higher bar for product innovation
that reflects an increased
demand for value from both
regulators and payers.
 Weak growth in developed
markets, the continued rise of
emerging markets, and a shift to
specialty medicines are forecast
to be significant outcomes over
the next five years.

8. The global pharmaceutical market size is estimated to reach USD 1.4
trillion and the Indian pharmaceutical market size is estimated as USD 55
billion by the year 2020. The Indian pharmaceutical sector is expected to
grow with faster compound annual growth rate (CAGR) compared to
global growth rate during the period 2015-2020.
The world market will be dominated by countries like USA, EU and
Japan and the contribution of Pharmerging countries is expected to
be more in coming years. The future of the world pharmaceutical
sector will be dominated by medicines for non communicable
diseases and original branded medicines.

9.  A compound annual growth rate (CAGR) for the global
pharmaceutical market of 3-6% in the forecast period
of 2013-2017.
 The US pharmaceutical market is projected to grow at
1–4%.
 In Europe, the pharmaceutical markets of the EU5 are
projected to experience a CAGR of 0–3%, and the rest
of Europe is projected to have a CAGR of (-1%) to 2%.
 Emerging markets, although projected to see strong
growth, will show slower growth than in the previous
forecast period.
 China’s pharmaceutical market will experience a
CAGR of 13–16% between 2013–2017 compared to a
CAGR of 22% during 2008–2012.

10.  The pharmaceutical markets of Brazil, India, and Russia are
projected to see a CAGR of 10–13% between 2013–2017
compared to a CAGR of 16% during 2008–2012.
 Tier 3 pharmerging markets are forecast to have pharmaceutical
industry growth of 6–9% between 2013–2017 compared to a CAGR
of 9% during 2008–2012.
 The influence of emerging markets in pharmaceutical industry
growth is evident by several key projections offered by IMS.
 By 2017, 50% of drugs by volume are forecast to be in
pharmerging markets, and the US and Europe each respectively
will account for only 13% of pharmaceutical volume by 2017.
 Led by China, the BRIC countries (Brazil, Russia, India, and China)
will account for 70% of all pharmerging market sales by 2017 on a
value basis and strategically will continue to be the important
engines of growth among emerging markets.
 Pharmaceutical sales in China are expected to reach $167 billion
by 2017, $49 billion in Brazil, $24 billion in India, and $27 billion
in Russia, according to IMS.

11.  Between 2012-2018, the “patent cliff" will wipe an
estimated $148 billion off pharmaceuticals industry
revenues due to many drugs coming out of patents
 Rising cost of R&D, the cost of bringing a molecule to
market globally is estimated to be from $800 million to
$4 billion.
 On average, out of every 10,000 molecules been
developed; only one or two are likely to reach the
market.
 Increasing government pressure, with harsher price
controls and taxes.
 European Medical Agency (EMA) and the US Food and
Drug Administration (USFDA) are focusing on risk
management; thereby putting pressures on profitability
of pharmaceutical companies.

12.  The Indian pharmaceutical sector evolved in different phases from pre
independence era to post Trade-Related Aspects of Intellectual
Property Rights (TRIPS).
 Presently, Indian pharmaceutical sector is dominated by the generics
drugs and more drugs are sold in anti-infective category.
 The Indian pharmaceutical industry is having opportunities in the
domestic market with growing demand for quality health care. More
opportunities are seen in the area of Contract Research and
Manufacturing Services (CRAMS) by Mergers and Acquisitions (M&A)
and Biogenic market..
 The government of India has taken measures to boost
pharmaceutical sector, even though, the pharmaceutical sector is
facing challenges in patent rights and methods used for fixing
ceiling price for drugs.
 More challenges are expected due to immature clinical trial
regulations and ethical aspects

13.  The Indian pharmaceutical market will reach
$19.80bn in 2016. Vision gain forecasts
Indian pharmaceutical revenues to increase
strongly from 2016 to 2026,
 Cardiovascular disease submarket forecasted
to show the fastest growth.
 Key drivers of the market include increased
healthcare spending, rapid urbanisation,
increasing access to healthcare in rural areas
and increasing chronic disease burden in the
growing middle class.

14.  “The Indian pharmaceutical market has a
potential for growth that is matched by no other
major economy in the world.
 As the Indian economy grows and the people
become more prosperous, the prevalence of
non-communicable diseases will increase.
 With the right amount of investment in
healthcare infrastructure, the Indian market has
the capability to become one of the top 3
pharmaceutical markets in the world.”

15. By 2020, India is likely to be among the top three
pharmaceutical markets by incremental growth and
sixth largest market globally in absolute size
India’s cost of production is significantly lower
than that of the US and almost half of that of
Europe. It gives a competitive edge to India over
others

16.  The Indian pharmaceuticals market increased at a CAGR
of 17.46 per cent during 2005-16 with the market
increasing from US$ 6 billion in 2005 to US$ 36.7 billion
in 2016 and is expected to expand at a CAGR of 15.92
per cent to US$ 55 billion by 2020.
 Branded generics dominate the market, making up 70-
80% of it.
 The local companies enjoy a dominant position due to
their development capabilities and early investment, as
from 1970 to 2005, Indian law only recognized process
patents and not product patents, which many companies
took advantage of.
 The price of drugs is very low, due to intense
competition. While India is 10th globally in terms of
value, it is 3rd in term of volume of drugs produced.
 On the global front, the IPM is ranked 13th in terms of value. Owing to
robust growth, its ranking is expected to improve to 11th position by
2018.

17.  The Indian pharmaceuticals market is the third largest in terms of
volume and thirteenth largest in terms of value, as per a report by Equity
Master.
 India is the largest provider of generic drugs globally with the Indian
generics accounting for 20 per cent of global exports in terms of
volume.
 Of late, consolidation has become an important characteristic of the
Indian pharmaceutical market as the industry is highly fragmented.
 India enjoys an important position in the global pharmaceuticals sector.
The country also has a large pool of scientists and engineers who have
the potential to steer the industry ahead to an even higher level.
 Presently over 80 per cent of the antiretroviral drugs used globally to
combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by
Indian pharmaceutical firms

18.  The generics market is expected to grow to USD26.1 billion by
2016 from USD21 billion in 2015.
 India’s generics market has immense potential for growth
 With 70 per cent of market share (in terms of revenues), generic
drugs form the largest segment of the Indian pharmaceutical
sector.
 India supply 20 per cent of global generic medicines market
exports in terms of volume, making the country the largest
provider of generic medicines globally and expected to expand
even further in coming years
 Over the Counter (OTC) medicines and patented drugs constitute
21 per cent and 9 per cent, respectively, of total market revenues
of US$ 20 billion

19.  The IPM is highly fragmented with about 24,000 players (330 in the
organised sector). The top ten companies including domestic and MNC
companies make up for more than a third of the market.

20.  Anti-infective drugs command the largest share (16 per cent)
In FY15, anti-infectives grew at 22 per cent,
 The cardiovascular segment represents 13 per cent of the market share;
its contribution is likely to rise due to the growing number of cardiac
cases in India . Cardiovascular grew at 19.1 per cent
 The Anti- diabetic segment represents 11% & grew at 32.9 per cent,
 Gastro-intestinal contributes around 11 per cent of the total value of
pharma industry in India. With increasing number of research in
gastroenterology, segment is going to grow at significant pace in
coming years. In FY 15 , gastrointestinal grew at 23.4 per cent
 Top five segments contribute nearly 57 per cent to the total drugs
consumption.
 Pain & analgesics contributes 8% grew at 16.5 per cent , Respiratory
segment contributing 9% grew at 27.8 per cent.
 Derma market grew by 19.2 per cent and Urology by 29.5 per cent
Source: All Indian Origin Chemists &
Distributors, Department of
Pharmaceuticals, TechSci Research

21.  The life style segments such as cardiovascular, anti-diabetes, anti-
depressants and anti-cancers will continue to be lucrative and fast
growing owing to increased urbanisation and change in lifestyle
patterns.
 Going forward, better growth in domestic sales will depend on the
ability of companies to align their product portfolio towards these
chronic therapies as these diseases are on the rise.

22. 1. Indian pharmaceutical industry is highly fragmented with 23,000 players
and no company enjoys more than 7% market share.
2. However, with the introduction of product patents, many companies have
started going in for Mergers and Acquisitions and thus gain synergies in
research and development, cut costs, sustain revenues and increase
market share.
3. This will also help the companies in being better prepared once the
product patent is introduced.
4. There is a wide range of business models that Indian companies can
adopt in order to survive the post 2015 era.
5. Thus companies that are able to recognize their strengths and capitalize
on the same are the ones that will survive.
6. Many Indian companies have realized this and are in the process of
identifying the business line that would yield optimum returns.
7. From here on, success for Indian companies in the pharmaceutical
industry will be a factor of viable long-term strategies.

23. Source: TechSci Research

24.  Growth opportunities for pharma companies
are expected to grow in next few years, with
many drugs going off-patent in the US and
other countries, thus increasing competition
 Indian pharma companies will face
competition from big pharma companies,
backed by huge financial muscle

25.  Strict government regulations thwart entry of
new players •
 Difficult to survive because of high gestation
period

26.  Threat to substitute products is low; however,
homeopathy and Ayurveda medicines can act
as substitute

27.  Difficult-to-manufacture APIs such as
steroids, sex hormones and peptides give
bargaining power to suppliers. However,
generic APIs do not have much of that power

28.  Generic drugs offer a cost effective alternative
to drugs innovators and significant savings to
customers •
 Biosimilars offer significant cost saving for
insurance companies in India

29.  Indian pharmaceutical sector accounts for about 2.4 per cent of
the global pharmaceutical industry in value terms and 10 per
cent in volume terms
One of the highest exports
 India accounts for 20 per cent of global exports in generics. In
FY15, pharmaceuticals industry of India exported products worth
USD15 billion and the exports are expected to reach USD40
billion by 2020
Rapidly growing healthcare sector
 Indian healthcare sector, one of the fastest growing sectors, is
expected to advance at a CAGR of 17 per cent to reach USD250
billion over 2008–20
Increase in the size of middle class households
 coupled with the improvement in medical infrastructure and
increase in the penetration of health insurance in the country will
also influence in the growth of pharmaceuticals sector

30.  Ranked 5th in terms of attracting FDI
 Attracted 5 per cent of the total FDIs into India
from April 2000 to September 15 •
 Cumulative FDI inflows worth USD13.32 billion
from April 2000 to September 15
 Among fastest growing industries
 The country’s pharmaceutical industry is
expected to expand at a CAGR of 12.89 per cent
over 2015–20 to reach USD55 billion
Source: Department of Industrial Policy and Promotion, TechSci
Research Notes:

31.  Comprising of :
1. bio-pharmaceuticals,
2. bio-services,
3. bio-agriculture,
4. bio-industry and
5. Bioinformatics
Is expected grow at an average growth rate of
around 30 per cent a year and reach US$ 100
billion by 2025.

32.  Comprising of :
1. vaccines,
2. therapeutics and
3. Diagnostics
It is the largest sub-sector contributing nearly
62 per cent of the total revenues at Rs 12,600
crore (US$ 1.88 billion).

33. 0
1
2
3
4
5
6
7
8
9
2002-20032003-20042004-20052005-20062006-20072007-20082008-20092009-20102010-2011
US$/Bn
Year
Imports Exports
Source: Ministry of Chemicals &
Fertilizers, Department of

34.  The Indian pharmaceutical sector is highly
fragmented, with more than 20 000
registered companies, with the top 250
companies controlling 70% of the market.
These companies can currently meet about
70% of the countries demands for drugs; this
is mainly through the Maharashtra and
Gujarat regions, which account for 45% of the
total number of pharmaceutical
manufacturing units in India.

36. 132
4.1
0
2
4
6
8
10
12
14
16
18
20
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
% GDPPer Capita
US $
Per Capita Spent on Healthcare
% GDP Spent on Healthcare

37. 70.8
0
10
20
30
40
50
60
70
80
%oftotalhealthcarespending

38.  Population Growth
 Socio Economic Changes and Urbanization
 Increasing acceptability of modern medicine
 More affordably drugs
 More accessibility to drugs and medical care
 Cheap production cost
 Government regulations targeting growth and
competitive market
 Contract R&D
 Medical Tourism

41.  India is the third largest manufacturer of
pharmaceutical products in terms of volume and it is
growing steadily.
 The market has seen the entry of many foreign
players as well as rise of many domestic
manufacturers.
 After the formation of the new government under Mr
Narendra Modi, the sector has been given a major
boost.
 The government is trying to implement policies like
‘Make in India’ .
 So with plans to make India a superpower and
improve the market, the Government is on the right
track.

42.  This for the pharma sector is a very positive
sign but there are certain speed breakers on
the road for the companies.
 The challenges faced by the companies are :

43.  This has somehow always been a problem for the
companies. United States Food and Drug
Administration is trying to block the growth of the
companies { As believed by many ]
Why is the approval of USFDA important ?
 The approval of USFDA is important because the
largest consumer of pharma products is the USA and
India is a major exporter. The opinion of the USFDA is
considered to be the standard in the sector as well.
 The companies are trying to improve their standards
and this issue can be solved by having officials who are
more stringent and inspections on a regular basis can
be done

44. The Indian pharma industry is highly fragmented. The market
is overloaded with generic manufacturers.
 Why is this a problem?
 This is a cause for concern because high fragmentation
causes instability, volatility and uncertainty. This is certainly
not a good omen for the pharma sector.
 Pharmaceutical companies can review their strategies to
survive in a volatile environment.
 Some of the actions that can be taken by the companies are
they can periodically review their product portfolio and
build more customer centric products.
 The companies need to build their organisation in such a
way that will enable better operational ability and agility.

45.  The main issue raised by most of the pharma
companies is that the profits which they earn are
basically peanuts and this income is not
sufficient enough.
 The companies sight that the reforms of the
Government for the essential medicines has
caused them to lower the price of drugs.
 This has been done by the Government for the
betterment of the public.
 So the Government has to think of a way to
promote the pharma companies as well.
 Funding for the pharma companies might be a
way to move forward.

46.  The above mentioned challenge directly
affects the R&D of the companies.
Why?
 The lower the profits for the companies, the
lower the investments. So the companies
sight that due to the low income they are not
able to develop products the way they want.

47.  IP regulation has always been a thorn in the skin
for the companies, especially the foreign
companies.
 The companies strongly feel that the rules have
to be amended and the so-called victim of the
lax regulations have been the foreign entrants.
 The solution to this answer might be provided
by the IPR Think Tank formed by the
Government to draft a stronger national IP
policies

48.  1) Defining the market;
 2) Designing the brand proposition and marketing
plan; and
 3) Delivering the plan in the marketplace.
>> Within each of these components there are a
number of skills and capabilities necessary to deliver
excellence.
>>The goal is to identify which capabilities have the
greatest impact on your business and where you have
the greatest gaps versus best practice.

49.  Generate actionable customer insights
 Segment key customers and target key
stakeholders
 Identify unmet needs and size volume
opportunity.
 Understand current brand and competitor
equity
 Define product/service opportunity and
economic value proposition

50.  Develop relevant, compelling and differentiated brand
positioning
 Build brand plan and articulate strategic imperatives
to deliver brand including . . .
 – Key brand messages and communication strategy
for each important stakeholder (e.g. physicians,
patients, payors, pharmacists, KOL’s)
– Pricing and promotions strategy
– Expressed link to clinical plan
 Develop physician/patient programs to build
compliance and persistency.
 Define brand Portfolio and Architecture
 – Role of individual and corporate brands

51.  Align organization (e.g. sales force, global/local, commercial /
clinical) and optimize communication delivery vehicles
 Customize interaction mix for key customers given brand
objectives
 Partner with payors to maximize preferred access while
minimizing discounts
 Set clear targets for brands that measure both volume and brand
equity performance (Brand Scorecard)
 Understand impact of programs on revenue (ROI) and other
objectives
 Monitor customer satisfaction to ensure customer experience is
 consistent with brand promise
 Build internal capabilities as needed in the areas that matter the
most

52.  The Indian pharmaceutical market size is expected to grow to US$ 100
billion by 2025, driven by increasing consumer spending, rapid
urbanisation, and raising healthcare insurance among others.
 Going forward, better growth in domestic sales would also depend on the
ability of companies to align their product portfolio towards chronic
therapies for diseases such as such as cardiovascular, anti-diabetes, anti-
depressants and anti-cancers that are on the rise.
 The Indian government has taken many steps to reduce costs and bring
down healthcare expenses.
 Speedy introduction of generic drugs into the market has remained in
focus and is expected to benefit the Indian pharmaceutical companies.
 In addition, the thrust on rural health programmes, lifesaving drugs and
preventive vaccines also augurs well for the pharmaceutical companies

53. THANK YOU