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Indian pharmaceutical industry


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Overview of Indian Pharmaceutical Industry, Growth of Indian Pharma,

Published in: Business, News & Politics

Indian pharmaceutical industry

  1. 1. Indian Pharmaceutical Industry<br />VikramGole<br />
  2. 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<br /> (Development Economist)<br /><br />
  3. 3. Some facts<br />IPI is 3rd in terms of Volume & 14th in terms of Value.<br />India Tops the world in exporting generic medicines worth USD 10 Bn.<br />IPI is growing at a CAGR of around 13% annually.<br />The Indian diagnostic services are growing at a CAGR of more than 20% annually. <br />India has 20,000+ registered Pharmaceutical Units.<br />
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  5. 5. Key Characteristics of Indian Pharma Sector<br />Self-reliance by the production of 70% of bulk drugs and the entire requirement of formulations within the country.<br />Low cost of production.<br />Low R&D costs.<br />Innovative Scientific Manpower.<br />Excellent and world-class national laboratories specialising in process development and cost effective technologies.<br />Increasing balance of trade in pharma sector.<br />An efficient and cost effective source for procuring generic drugs especially the drugs going off patent in the next few years.<br />An excellent centre for clinical trials in view of the diversity in population.<br />
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  7. 7. Major Player FY2010<br /><br />
  8. 8. Strengths<br />Cost Competitiveness<br />Well-developed industry with strong manufacturing base<br />Well-established network of laboratories and R&D infrastructure<br />Access to pool of highly trained scientists<br />Strong marketing and distribution network<br />Rich biodiversity<br />Competencies in Chemistry and process development<br />India has the largest number of US FDA approved plants outside US<br /><br />
  9. 9. Weaknesses<br />Low investments in innovative R&D<br />Lack of resources to compete with MNCs for new drug discovery research & to commercialize molecules on a world wide basis<br />Inadequate regulatory standards<br />Production of spurious and low quality drugs spoils the image of the industry in international arena<br /><br />
  10. 10. Opportunities<br />Significant export potential<br />Marketing alliances to sell MNC products in Indian market<br />USD 4.0 Bn patents are getting off patent in Yr2012-15<br />Contract manufacturing agreements with the MNCs<br />Potential for developing India as a centre for international clinical trials<br /><br />
  11. 11. Threats<br />DPCO puts unrealistic ceilings on product prices & profitability<br />Export effort hampered by procedural hurdles & non tariff barriers (NTB) imposed abroad<br />Lowering of tariff protection<br /><br />
  12. 12. What are the Growth Drivers if IPI…?<br />Increasing incomes & healthcare expenditure<br />Significant patent expiries in developed markets present good growth opportunities for Indian generic companies<br />Emerging markets to become the next destinations for pharma companies.<br />M&A a potential catalyst.<br />Bio-similars – potentially a big long-term driver<br /><br />
  13. 13. So, is there anything concern about..?<br />Product pipeline drying up<br />Patent expiries could cannibalise other generic molecules in India<br />Big Pharma moving into generics<br />US FDA delays, compliance issues (16-26Months)<br />National Pharmaceuticals Policy 2006 (74D-354D)<br /><br />
  14. 14. Thank you……<br />