Status of Pharmaceutical Industry in India -History -Evolution -Current Scenario -Market Share -Government Initiatives -Top 10 Pharmaceutical Industry -R&D Spendings -Challenges -Road Ahead

2. • Indian pharmaceutical history began from Gupta period which
was existed from approximately 320 to 550 CE where people
were dependent only on indigenous form of medicine before
British rule.
• In India Allopathic medication was started in British rule, but
production of such medicines was not in the country.
• In 1901 Acharya P C Ray started first Indian Pharmaceutical
Industry, Bangal Chemical in Calcutta.
• The government started to encourage the growth of drug
manufacturing by Indian companies in the early 1960s, and with
the Patents Act in 1970.
• However, economic Liberalization in 90s enabled the industry to
become what it is today.

4. • India enjoys an important position in the global pharmaceuticals
sector.
• The Indian pharmaceuticals market is the third largest in terms of
volume and thirteenth largest in terms of value.
• It accounts for 20 per cent in the volume terms and 1.4 per cent
in value terms of the Global Pharmaceutical Industry.
• 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.
• Labour costs are 50–55 per cent cheaper than in Western
countries. The cost of setting up a production plant in India is 40
per cent lower than in Western countries
• Indian Pharmaceutical Industry has market size of $29.61 billion
(as in 2016) is expected to reach a mark of $55 billion by 2020 at
a rate of around 15-16%

6. • India's biotechnology industry comprising bio-pharmaceutical, bio-
services, bio-agriculture, bio-industry and bioinformatics is
expected grow at an average growth rate of around 30 per cent a
year and reach US$ 100 billion by 2025.
• Biopharma, comprising vaccines, therapeutics and diagnostics, is
the largest sub-sector contributing nearly 62 per cent of the total
revenues at Rs 12,600 crore (US$ 1.89 billion)
• India’s pharmaceutical exports stood at US$ 16.4 billion in 2016-
17 and are expected to grow by 30 per cent over the next three
years to reach US$ 20 billion by 2020, according to the
Pharmaceuticals Export Promotion Council of India
(PHARMEXCIL).
• India has the 2nd largest number of USFDA-approved
manufacturing plants outside the US
• India has 2,633 FDA-approved drug products. India has over 546
USFDA-approved company sites, the highest number outside the
US
• Cost-efficiency continues to create opportunities for Indian
companies in emerging markets & Africa.

7. 2012 2013
2014
2015
2016
2017
3.6 4.4 4.6
3.7 3.7
0
10.1
12.6
14.5 14.9
16.9 16.6
Import Export

8. • 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 are supplied by Indian pharmaceutical
firms.
• The Indian pharmaceutical sector is highly fragmented with more
than 20,000 registered units.
• The Pharmaceutical industry of India meets around 70% of the
country’s demand.
• There are approximately 250 Large units and about 8000 Small
Scale units, which form the core of pharmaceutical industry in
India.
• There are mainly five government owned pharmaceutical
companies in the country.
• Himachal Pradesh, Gujarat, Maharashtra, Madhya Pradesh,
Andhra Pradesh and Punjab are hubs of pharmaceutical industry.
• Indian Pharmaceutical industry Imports 75% of API (Active
Pharmaceutical Ingredients) from China

10. • Anti-infective drugs command the largest share (16 per cent) in
the Indian pharma market.
• 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.
• 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.
• Top five segments contribute nearly 57 per cent to the total drugs
consumption

11. Anti
Infectives
16%
Cardiovascular
(CVS)
13%
Gastro
Intestinal
11%Vitamins &
Minerals
8%
Respiratory
9%
Pain/analgesic
7%
Anti Diabetic
7%
Others
29%

12. • The Government of India unveiled 'Pharma Vision 2020' aimed
at making India a global leader in end-to-end drug manufacture.
Approval time for new facilities has been reduced to boost
investments.
• The government introduced mechanisms such as the Drug
Price Control Order and the National Pharmaceutical Pricing
Authority to deal with the issue of affordability and availability of
medicines.
• The Government plans to incentivize bulk drug manufacturers,
to encourage “Make in India” programme and reduce
dependence on imports of API, nearly 85% of which come form
China.
• There are five Central Public Sector Enterprises (CPSEs) under
the administrative control of Department of Pharmaceuticals.

13. S.No. Public Sector Companies
1.
KARNATAKA ANTIBIOTICS & PHARMACEUTICALS LIMITED
(KAPL), BANGALORE
2.
RAJASTHAN DRUGS & PHARMACEUTICALS LIMITED (RDPL),
JAIPUR.
3. HINDUSTAN ANTIBIOTICS LIMITED (HAL), PIMPRI, PUNE
4.
BENGAL CHEMICALS & PHARMACEUTICALS LIMITED (BCPL),
KOLKATA
5.
INDIAN DRUGS & PHARMACEUTICALS LIMITED (IDPL),
GURGAON

14. • The bio-pharmaceutical
segment accounted for
largest revenue share of 64
per cent in India biotech
industry, during FY16.
• India is becoming a leading
destination for clinical trials,
contract research &
manufacturing activities
which is leading to the
growth of bio services sector.
• Serum Institute of India is the
largest biopharma company
in the country and accounts
for approximately 22 per cent
of biopharma market.
64%
18%
14%
4%
Market Share of Bio Pharma
In Biotechnology Industry
Bio Pharma
Bio Service
Bio Agri
Others

15. S.NO. Company
Market Capitalization
2017 (INR)
1 Sun Pharmaceutical Rs 1,55,716 Crore
2 Lupin Ltd Rs 68,031 Crore
3 Dr. Reddy's Laboratories Rs 49,293 Crore
4 Cipla Rs 47,319 Crore
5 Aurobindo Pharma Rs 41,283 Crore
6 Zydus Cadila Healthcare Rs 31,631 Crore
7 Piramal Enterprise Rs 30,975 Crore
8 Glenmark Pharmaceuticals Rs 25,302 Crore
9 GlaxoSmithKline Rs 23,010 Crore
10. Torrent Pharmaceuticals Rs 22,742 Crore

16. • In FY17, highest
expenditure on
research and
development has been
done by Sun Pharma,
followed by Lupin.
• Sun Pharma’s R&D
spending is 7.6 per
cent of the total sales
in the FY17.
• Lupin’s R&D spending
was 13.5 per cent of
sales in FY17.
0
50
100
150
200
250
300
350
400 361 359
306
174
104 85
R&D Spending of top
companies in FY17 (US$
million)

17. The nature and diversity of the Indian pharmaceutical market,
health care objectives and legal system pose unique challenges for
pharmaceuticals sector in India.
• Public and government pressure to make drug prices more
affordable.
• Inadequate penetration of current health insurance schemes.
• Pricing of Patented Drugs.
• Low investments in innovative R&D continue to be a major
weakness of Indian pharmaceutical industry.
• Requirement of Stringent Regulatory Practices.
• Comparatively small domestic market size due to low medical and
healthcare expenditure in the country.
• Strong linkages between industry and academia which are
essential for growth of the industry is lacking in India.
• Other low-cost countries such as China and Israel affecting
outsourcing demand for Indian pharmaceutical products

18. • The Indian pharmaceutical market size is expected to grow to
US$ 100 billion by 2025, driven by increasing consumer spending,
rapid urbanization, and raising healthcare insurance among
others. Pharma sector’s revenues are expected to grow by 9 per
cent year-on-year through fiscal 2020.
• 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.