A macro view on INDIA'S PHARMACEUTICAL INDUSTRY & its Globalization

1. GROUP NO 12
FROM ROLL NO 89 TO
96
• A Macro view on
•INDIA’S
PHARMACEUTICAL
INDUSTRY
• And it’s Globalization

5. HEALTH EXPENDITURE PER CAPITA
• The amount each country spends on health of both individual
and collective services is known as health expenditure per
capita.
• Health Expenditure Includes the consumption of health goods
and services , also public health program as well as insurance
and government spending .

6. HEALTH EXPENDITURE STATUS OF
INDIA.
• The value of Public health expenditure by states
and union terroteries of India together amounted
to 1.5 trillion Indian Rupees.
• Health budjet of India is only 0.34% of GDP .
• In Health service Indian Ranked 11Th .

9. GLOBAL STATUS OF INDIAN
PHARMACEUTICAL INDUSTRY

10. • Globally India ranks 3rd in terms of pharmaceutical
production by volume and 14th by value .
• The domestic Pharmaceutical Industry includesa
network of 3000 drugs campanies and approximately
10500 manufacturimg units.
• Approximately 40% of all pharmaceutical produced in
India are exported, accounting for around 20-25 % of
global generic drugs.

11. • US is the largest consumer of Indian Pharmaceutical
exported medicines followed by UK.
• North America alone contributes to 27% of the total
generic drug consumption of Indian Pharmaceutical
Medicines.
• Currently , Indian consumers are spending nearly 1% of
their total income on drugs and pharmaceuticals .

13. REVENUE OF INDIAN
PHARMACEUTICAL SECTOR

14. INTRODUCTION
• India is the largest provider of generic drugs
globally.
• Indian pharmaceutical sector supplies over
50% of global demand for various vaccines,
40% of generic demand in the US and 25% of
all medicine in the UK.
• Globally, India ranks 3rd in terms of
pharmaceutical production by volume and
14th by value.
• The domestic pharmaceutical industry
includes a network of 3,000 drug companies
and ~10,500 manufacturing units.

15. MARKET SIZE
• According to the Indian Economic Survey 2021, the
domestic market is expected to grow 3x in the next
decade.
• India’s domestic pharmaceutical market is estimated at
US$ 42 billion in 2021 and likely to reach US$ 65 billion
by 2024 and further expand to reach ~US$ 120-130
billion by 2030.
• India’s biotechnology industry comprising
biopharmaceuticals, bio-services, bio-agriculture, bio-
industry, and bioinformatics.
• The Indian biotechnology industry was valued at US$ 64
billion in 2019 and is expected to reach US$ 150 billion
by 2025.

16. EXPORTS
• India’s drugs and pharmaceuticals exports stood at US$
24.44 billion in FY21.
• India is the 12th largest exporter of medical goods in the
world. The country’s pharmaceutical sector contributes
6.6% to the total merchandise exports.
• As of May 2021, India supplied a total of 586.4 lakh
COVID-19 vaccines, comprising grants (81.3 lakh),
commercial exports (339.7 lakh) and exports under the
COVAX platform (165.5 lakh), to 71 countries.
• Indian drugs are exported to more than 200 countries in
the world, with US being the key market.
• Generic drugs account for 20% of the global export in
terms of volume, making the country the largest provider
of generic medicines globally.

17. ANNUAL REVENUE OF INDIAN
PHARMACEUTICAL MARKET 2015-2019
• India’s domestic pharmaceutical industry’s
annual turnover reached over 20 billion U.S.
Dollars in 2019. In 2018, the India
pharmaceutical market was valued at 18
billion U.S. Dollars.
• The pharma industry in the country has
been doing well despite a fluctuating
economy.
• There was a 9.8 percent year-on-year
growth rate recorded in the market in 2019
compared to 2018.

19. INVESTMENTS AND RECENT
DEVELOPMENTS
1. In June 2021, Sun Pharmaceuticals acquired
the patent license for Dapagliflozin from
AstraZeneca. The company will be
distributing and promoting the drug under
the brand name ‘Oxra’.
2. In May 2021, the Government of India invited
R&D proposals on critical components and
innovations in oxygen concentrators by June
15, 2021.
3. In May 2021, Cipla launched a real-time
COVID-19 detection kit ‘ViraGen’ that is
based on multiplex polymerase chain reaction
(PCR) technology

20. INVESTMENTS AND RECENT
DEVELOPMENTS
4. In April 2021, National Pharmaceutical Pricing
Authority (NPPA) fixed the price of 81
medicines including off-patent anti-diabetic
drugs allowing due benefits of patent expiry
to the patients.
5. In February 2021, the Russian Ministry of
Health allowed Glenmark Pharmaceuticals to
market its novel fixed-dose combination
nasal spray in Russia.

21. 1. Artificial Intelligence
The use of artificial intelligence (AI) and machine learning is accelerating the drug discovery and
development processes.
2. Big Data & Analytics
Development process require high-performance systems to properly analyze data and derive
value from it.
Pharmaceutical companies are looking to open up their critical data to third parties, thus making
data management a crucial area of focus.
The advancement in analytical techniques is also turning historical and real-time data available
with pharmaceutical companies into valuable assets for predictive, diagnostic, prescriptive, and
descriptive analytics.
3. Flexible Production
The pharma industry is exploring new ways of manufacturing due to the changing market
dynamics, such as small batches for precision medicine.
New types of bioreactor systems and continuous manufacturing processes address the
increasing focus on biopharmaceuticals.

22. 4. Precision Medicine
Precision medicine comes from the idea of treating each patient as a unique individual.
Drug exposure models determine the pharmacokinetic and pharmacodynamic properties of drugs for
arriving at the right dosage for drugs based on age, sex, comorbidities, and other clinical parameters.
5. Additive Manufacturing
The need for precision medicine is also making pharmaceutical companies rethink the manufacturing process.
This allows the development of age or physiology-dependent medical formulations, as well as precision pills.
Bioprinters also help in pushing innovation in bio inks, tissue engineering, and microfluidics.
6. Blockchain
Blockchain technology is very significant for the pharmaceutical industry in every stage of the production
and distribution of drugs.
Blockchain technology is also being explored to tackle the use of counterfeit medicines and substandard drugs
that enter into the pharmaceutical supply chain and kill thousands of patients every year. The digitalization of
transactions makes blockchain a promising solution for tracking and securing the pharma transaction
ecosystem.

23. 7. Extended Reality (XR)
Mixed reality (MR), virtual reality (VR), and augmented reality (AR) is enabling visualizations like never
before. Pharma startups are exploring the possibilities of these technologies in pharmaceutical research and
manufacturing spheres.
8. Real-World Data
Real-world data (RWD) and real-world evidence (RWE) are transforming innovations in the pharmaceutical
industry. RWD includes patient health status, treatment data, and health reports collected routinely. The
pharmaceutical industry, owing to its research-intensive nature, has to make sure that the data they use is
reliable and of real value.
9. Digital Therapeutics
Digital therapeutics deliver evidence-based therapeutic interventions using software to prevent, manage, or
treat physical, mental, and behavioral conditions. These non-pharmacological, tech-driven solutions are either
stand-alone or used along with medications, devices, or therapies. Digital therapeutics let each individual have
greater control over their health and outcomes.
10. Curative Therapies
There is a paradigm shift happening in the area of treating illnesses from managing diseases to curing
diseases altogether. Curative therapies such as cell and gene therapies are changing the way we deal with
chronic diseases or difficult to treat conditions by eliminating the need for long-term treatments. In gene
therapy, genetic material is introduced into the cells to compensate for abnormal genes or to make a
beneficial protein. Genetically engineered viruses are the most common vectors used for gene therapy.

24. GOVERNMENT INITIATIVES
The Department of Pharmaceuticals has a Vision for the development of the
Indian Pharmaceutical Industry.
This Vision is – “To make India the Largest Global Provider of Quality Medicines at Reasonable
Prices”
The Vision is to be achieved as per the following Mission:
• Develop Human Resources for Pharmaceutical Industry and Drug Research
and Development
• Promote Public‐Private Partnership for development of pharmaceuticals
Industry
• Promote Pharma Brand India through International Cooperation
• Promote environmentally sustainable development of Pharmaceutical
Industry
• Enable availability, accessibility and affordability of drugs

25. In order to realize the Mission, the Department has set the following Goals for 12th
plan:
• Production size of US$60bn and export size of over US$25bn.
• Upgradation of SMEs to WHO‐GMP and training of professionals therein.
• Establishment of Pharma Growth Clusters.
• Facilitate growth of Central pharma PSUs.
• Develop Pharma Infrastructure and Catalyze Drug Discovery and Innovation
• Develop Pharma Human Resources through increased M.Pharma and Ph.D
programs in NIPERS
• Provide Infrastructure and staff for new NIPERs and strengthen NIPER Mohali
• Open 10 new NIPERs
• Jan Aushadi Campaign and implementation of Business Plan for setting up of
3000Jan Aushadhi Stores (upto subdivision level in the country)
• Incentivizing Private Sector for development of new Drugs for diseases endemic to
India

26. India and US Market

27. According to the Indian Economic Survey 2021, the domestic market is expected to grow 3x in the next decade.
India’s domestic pharmaceutical market is estimated at US$ 42 billion in 2021 and likely to reach US$ 65 billion by
2024 and further expand to reach ~US$ 120-130 billion by 2030.
India's biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and
bioinformatics. The Indian biotechnology industry was valued at US$ 64 billion in 2019 and is expected to reach US$
150 billion by 2025.
India’s medical devices market stood at US$ 10.36 billion in FY20. The market is expected to increase at a CAGR of
37% from 2020 to 2025 to reach US$ 50 billion.
Some more Facts that prove India’s Pharmaceutical industry dominance
in US Market.

28. Why India is called the pharmacy of the world?
Case study on Indian Pharma Industry.
Introduction
• Affordable healthcare is a basic human need which must be ensured by the
governments.
•This problem gets worse when many pharma giants with uncontrolled profit motive
in the pharmaceutical industry start creating their own monopoly through their own
patented products.
•During 1950’s and 1960’s, even in india, western multinational pharmas had
monopolised india’s drug market.

29. The turning point of Indian
pharma industry
CIPLA and the Indian Patents Act 1970- Indian Patent Act,1970 was enacted replacing the` The
patents and designs Act,1911’
Our Pharma Industry revolution starts from 1935 and CIPLA came into picture.
The company did commendable work during the world war 2 by suppling life saving drugs to the
south-east Asian countries.
Then the Patents act,1970 was passed- and then the New Indian Pharma revolution was started.
The new act allowed Indian pharma companies to make low-cost generic versions of critical life
saving drugs. Example of this is:

30. In 1999, WHO declared AIDS in Africa “ The biggest killer”.
Till the then big Pharma companies had started charging $10,000 per patent which was not affordable for poor
nations.
In 2001, Indian company started offering the supply of AIDS drugs at low cost in Africa by CIPLA.
CIPLA offered HIV medicines to the patients with 99% cost reduction.
Following, India has also been manufacturing low cost drugs for non-communicable diseases such as Tuberculosis,
Malaria, Hepatitis C etc.
India also has setup largest no. of US FDA compliant pharmaceutical plants to strengthen the export of low cost
medicine and vaccines.
India’s consisted increasing pharma producing capacity is due to its world-class research and development
facilities.

31. Economic survey 2020-21 suggest that Indian Pharma sector can Capitalize on the COVID induced opportunities.
Economic survey also suggested to reform the existing current regulatory system.
CHALLENGES-
1) India’s overdependence over china for API is a major challenge for the sector. Over 70% API is taken from china by
India.
2) Also India need to level up from generic medicines to novel chemical entities.
WAY FORWARD-
1)India should Diversify its API Sources.
2) For sustainable growth of the sector, Indian pharma sector and the government both have to work together in
collaboration to achieve the common goals.
3) We need to update our pharma industry by developing AI based drugs.

32. Investment and exports
• Pharmaceutical exports from india stood at USS 20.70
billion in FY20
• Pharmaceutical export include bulk drugs, intermediates,
drug formulations, biologicals, ayush and herbal products
and surgical.
• 100% foreign direct investment (FDI) is allowed under the
automatic route for greenfield pharma.
• 100% FDI is allowed in brownfield pharma; wherein 74% is
allowed under the automatic route and thereafter through
government approval route

34. INDIAN PHARMACEUTICAL MARKET FORECAST
• India ranks 3rd worldwide for pharmaceutical production by
volume and 14th by value. The country has an established
domestic pharmaceutical industry, with a strong network of
3,000 drug companies and ~10,500 manufacturing units.

36. Market Size
• According to the Indian Economic Survey 2021, the domestic
market is expected to grow 3x in the next decade. India’s
domestic pharmaceutical market is estimated at US$ 42 billion
in 2021 and likely to reach US$ 65 billion by 2024 and further
expand to reach ~US$ 120-130 billion by 2