The Indian pharmaceutical industry is the third largest by volume and fourteenth largest by value. It supplies affordable drugs domestically while also exporting $10 billion in generic medicines annually. Key strengths include low production costs, a skilled workforce, and strong manufacturing capabilities. However, the industry also faces challenges like low R&D investment, regulatory issues, and international trade barriers that could hamper further growth.

1. Indian Pharmaceutical IndustryVikramGole

2. “The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.”Richard Gerster (Development Economist)http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

3. Some factsIPI is 3rd in terms of Volume & 14th in terms of Value.India Tops the world in exporting generic medicines worth USD 10 Bn.IPI is growing at a CAGR of around 13% annually.The Indian diagnostic services are growing at a CAGR of more than 20% annually. India has 20,000+ registered Pharmaceutical Units.

4. http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

5. Key Characteristics of Indian Pharma SectorSelf-reliance by the production of 70% of bulk drugs and the entire requirement of formulations within the country.Low cost of production.Low R&D costs.Innovative Scientific Manpower.Excellent and world-class national laboratories specialising in process development and cost effective technologies.Increasing balance of trade in pharma sector.An efficient and cost effective source for procuring generic drugs especially the drugs going off patent in the next few years.An excellent centre for clinical trials in view of the diversity in population.

6. http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

7. Major Player FY2010http://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

8. StrengthsCost CompetitivenessWell-developed industry with strong manufacturing baseWell-established network of laboratories and R&D infrastructureAccess to pool of highly trained scientistsStrong marketing and distribution networkRich biodiversityCompetencies in Chemistry and process developmentIndia has the largest number of US FDA approved plants outside UShttp://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

9. WeaknessesLow investments in innovative R&DLack of resources to compete with MNCs for new drug discovery research & to commercialize molecules on a world wide basisInadequate regulatory standardsProduction of spurious and low quality drugs spoils the image of the industry in international arenahttp://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

10. OpportunitiesSignificant export potentialMarketing alliances to sell MNC products in Indian marketUSD 4.0 Bn patents are getting off patent in Yr2012-15Contract manufacturing agreements with the MNCsPotential for developing India as a centre for international clinical trialshttp://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

11. ThreatsDPCO puts unrealistic ceilings on product prices & profitabilityExport effort hampered by procedural hurdles & non tariff barriers (NTB) imposed abroadLowering of tariff protectionhttp://www.pharmaceutical-drug-manufacturers.com/pharmaceutical-industry/

12. What are the Growth Drivers if IPI…?Increasing incomes & healthcare expenditureSignificant patent expiries in developed markets present good growth opportunities for Indian generic companiesEmerging markets to become the next destinations for pharma companies.M&A a potential catalyst.Bio-similars – potentially a big long-term driverhttp://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

13. So, is there anything concern about..?Product pipeline drying upPatent expiries could cannibalise other generic molecules in IndiaBig Pharma moving into genericsUS FDA delays, compliance issues (16-26Months)National Pharmaceuticals Policy 2006 (74D-354D)http://stockshastra.moneyworks4me.com/pharma-sector-india-stock-overview-and-analysis/

14. Thank you……