The document summarizes the status of the global and Indian pharmaceutical industries. It notes that the global pharmaceutical market is expected to reach $1.18 trillion by 2024, driven by aging populations and chronic disease growth. The top companies globally in 2024 are predicted to be Pfizer, Novartis, and Roche. Oncology is the largest area of R&D spending. In India, the market was worth $18.12 billion in 2018 and is expected to grow to $55 billion by 2020. India supplies over 50% of global generic demand and has strong advantages in low-cost production. The top publicly listed Indian pharmaceutical companies are Sun Pharma, Dr. Reddy's, Cipla, Aurobind

1. 1
NATIONAL &
INTERNATIONAL
STATUS OF
PHARMACEUTICAL
INDUSTRY
-PRIYESH PANDYA
M. PHARMACY (I.P.)

2. GLOBAL PHARMACEUTICAL MARKET
• The pharmaceutical industry is responsible for
the development, production and marketing of
medications.
• The industries is expected to register growth led
by aging population, changing lifestyles, hectic
daily activities, unhealthy eating, increasing
incidence of chronic diseases across the global
population providing growth opportunities for
the industry players.
• Prescription drug sales expected to reach
$1.18trn in 2024. Immuno-oncology line
extensions significantly contribute to growth;
emergence of novel technologies such as cell and
gene therapy mark an inflection point in
pharma’s evolution
• Pfizer will be the leading prescription drug
company in 2024 with sales of $51.2bn, ahead of
Novartis and Roche
2

3. • Keytruda set to be the top selling drug worldwide in
2024, as Humira loses top spot due to adalimumab
biosimilar entry in the EU and expected USA biosimilar
competition from 2023.
• Vertex’s triple combination, VX-659/VX-445 +
Tezacaftor + Ivacaftor, is anticipated to be the most
valuable project in the pharmaceutical industry pipeline
with an NPV of close to $20bn.
• Oncology is the area with the largest proportion of
clinical development spending with 40% of total pipeline
expenditure, with close to 20% market share of pharma
sales in 2024.
• R&D spend is forecast to grow at a CAGR of 3.0% to
2024, lower than the CAGR of 4.2% between 2010 and
2018, partially driven by companies focusing on smaller
indications with lower clinical development cost burden.
• Roche leads the way in biotechnology, with a forecasted
$38.7bn of biologic sales in 2024, despite a decrease in
biotech market share of -5.4% owing to the effect of
biosimilars.
• Johnson & Johnson are forecast to narrowly overtake
Roche to be the biggest spender on pharmaceutical R&D
in 2024.
3
Rank Company World wide prescription
sales ($bn)
2018 2024 CAGR
1 Pfizer 45.3 51.2 +2.1%
2 Novartis 43.5 49.8 +2.3%
3 Roche 44.6 46.7 +0.8%
4 Johnson &
Johnson
38.8 45.8 +2.8%
5 Merck & co 37.4 42.5 +2.2%
6 Sanofi 35.1 40.7 +2.5%
7 GSK 30.6 38.7 +4.0%
8 AbbVle 32.1 35.0 +1.4%
9 Takeda 17.4 32.3 +10.8%
10 AstraZeneca 20.7 32.2 +7.7%
Table: World wide prescription drug sales (2018-2024)
Top 10 companies & total market

4. 4
Table: Top 10 most valuable R&D projects (ranked by net present value)

5. 5
Fig. Pharmaceutical R&D in 2024: Top 10 companies
More than any other industry, the pharmaceutical sector is highly dependent on its research and
development segment. Some pharmaceutical companies invest 20 percent and more of their
revenues in R&D measures.

6. NATIONAL STATUS
• India holds a strong position in the generic drugs market globally & is
the largest provider of the generic in the world.
• The Indian pharmaceutical sector is highly fragmented with more than
20,000 registered unit.
• There are approx. 250 large units, 8000 small scale units and 5 central
public sector units which are:
• Indian drug pharmaceutical limited.
• Hindustan antibiotic limited.
• Bengal chemical & pharmaceutical limited.
• Rajasthan drug pharmaceutical limited.
• Karnataka antibiotic pharmaceutical limited.
• Pharmaceutical industry in India rank 3rd in world in terms of volume
and rank 14th in terms of value.
• India is 2nd to generate USFDA. Total 5350 NDA or ANDA approvals
have been done by USFDA in between 2009 to 2018, among which
about 34.5% has been achieved by Indian companies. In last year
about 290 ANDA approvals has been achieved by Indian industries.
6

7. • Indian pharmaceutical industry supplies over 50 percent of global demand for various
vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.
• India accounts for 20 percent of global exports in generics. India’s pharmaceutical exports
stood at US$ 6.7 billion in FY20 (up to August’19). The exports are expected to reach
US$ 20 billion by 2020.
• Indian pharmaceutical sector is expected to grow at a CAGR of 22.4 per cent in the near
future and medical device market expected to grow US$ 55 billion by 2020. India is the
second largest contributor of global biotech and pharmaceutical workforce. The
pharmaceutical sector was valued at US$ 33 billion in 2017.
• Indian healthcare sector, one of the fastest growing sectors, is expected to cross US$ 372
billion by 2022
• The domestic generics market is expected to reach US$ 27.9 billion by 2020. India’s
generics market has immense potential for growth. Indian pharma companies received a
total of 415 product approval.
• By 2024-25, India’s biotech industry is estimated to increase to US$ 100 billion.
7

8. Advantages in India
8

9. EVOLUTION OF INDIAN PHARMACEUTICAL SECTOR
9

10. • India’s domestic pharmaceutical market turnover
reached Rs 129,015 crore (US$ 18.12 billion) in 2018,
growing 9.4 per cent year-on-year (in Rs) from Rs
116,389 crore (US$ 17.87 billion) in 2017.
• Medicine spending in India is projected to grow 9-12
per cent over the next five years, leading India to
become one of the top 10 countries in terms of
medicine spending.
• 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.
• The Ayurveda sector in India is expected to reach US$
4.4 billion by 2018 end and grow at 16 per cent CAGR
till 2025.
• The Indian pharmaceuticals market stood at Rs 12,492
crore (US$ 1.79 billion) for the month of September
2019 and sales stood at Rs 36,725.2 crore (US$ 5.25
billion) in the three months ended September.
• In September 2019, the Indian pharmaceutical sales
grew by 11.5 per cent year-on-year.
10
Indian Pharma Market

11. 11
Fig: Growth Drivers of Indian Pharma
Sector

12. 12
FAVOURABLE POLICY MEASURES SUPPORT GROWTH
• Pharma Vision 2020:
• Pharma Vision 2020 by the government’s Department of Pharmaceuticals aims to make India a major hub for
end-to-end drug discovery.
• Reduction in approval time for new facilities:
• Steps taken to reduce approval time for new facilities.
• NOC for export license issued in two weeks compared to 12 weeks earlier.
• Single-window clearance:
• As per NBDS, a proposal has been made to set up the National Biotechnology Regulatory Authority (NBRA) to
provide a single-window clearance mechanism for all bio-safety products to create efficiencies & streamline the
drug approval process.
• Support for technology upgrades and FDIs:
• Government is planning to relax FDI norms in the pharmaceutical sector.
• In March 2017, the government decided to create a digital platform to regulate and track the sale of quality
drugs, and it can be used by people living in the country as well as abroad.
• Pharmaceutical Parks:
• Government of India is planning to set up mega bulk drug parks in order to reduce industry’s dependency on
raw material imports.
• As of October 2018, the Uttar Pradesh Government will set up six pharma parks in the state and has received
investment commitments of more than Rs 5,000-6,000 crore (US$ 712-855 million) for the same.
• In October 2019, Telangana government proposed Hyderabad Pharma City with financial assistance from
Central government of Rs 3,418 crore (US$ 489 million).

13. • Union Budget 2019-20
• The allocation to the Ministry of Health and Family Welfare has increased by 18 per cent to Rs 62,659 crore
(US$ 8.96 billion).
• The National Health Mission Scheme is the largest government funded healthcare program, which is
expected to benefit 7.31 million poor families in the country by providing a cover of up to Rs 5 lakh (US$
7,314.22) per family per year on floater basis in the impaneled hospitals across India.
• The government has allocated Rs 32,995 crore (US$ 4.71 billion) towards the National Health Mission under
which rural and urban people will get benefited.
• Rs 6,400 crore (US$ 915 million) has been allocated to health insurance scheme Ayushman Bharat – Pradhan
Mantri Jan Arogya Yojana (AB-PMJAY).
• In 2017, the Department of Pharmaceuticals released a draft National Pharmaceutical Policy with the following
objectives:
• Make all essential drugs accessible to masses through affordable prices
• Provide the Indian pharmaceutical sector with a long term stable policy environment
• Make India self sufficient in end to end domestic drug manufacturing
• Maintain world class quality for domestic consumption and exports
• Create a positive environment for research and development in the pharma sector.
As per the new policy, the Department of Pharmaceuticals will have control over the National List of Essential
Medicines (NLEM), which decides the drugs for which the Government of India can control the prices.
13

14. Top 10 publicly listed pharmaceutical companies
in India by market capitalization in 2019
Rank Company Market Capitalization
2019 (INR crores)
1 Sun Pharmaceutical Industries Ltd. 1,05,247 Crore
2 Divis Laboratories Ltd. 48,845 Crore
3 Dr. Reddys Laboratories Ltd. 46,905 Crore
4 Cipla Ltd. 37,195 Crore
5 Biocon Ltd. 35,106 Crore
6 Lupin Ltd. 34,243 Crore
7 Piramal Enterprises Ltd. 33,350 Crore
8 Torrent Pharmaceuticals Ltd. 31,573 Crore
9 Glaxosmithkline Pharmaceuticals Ltd. 28,334 Crore
10 Abbott India Ltd. 27,569 Crore
14

15. • Some of the top companies in India:
1. Sun Pharmaceuticals Industries Limited
• SUN PHARMA is an Indian multinational pharmaceutical company headquartered in Mumbai,
Maharashtra known for the manufacturing and selling of pharmaceutical formulations and active
pharmaceutical ingredients (APIs).
• The company was founded in the year 1983 by Dilip Sanghvi (now the Managing Director of Sun
Pharma) in Vapi, Gujarat with five products to treat psychiatry ailments.
• Today, the company’s major therapeutic areas including cardiology, psychiatry, neurology,
gastroenterology, and diabetology. The company also provides Active Pharmaceutical Ingredients (APIs)
such as warfarin as blood diluters, carbamazepine as anti-convulsant, etodolac as NSAID, and
clorazepate as well as anti-cancers, steroids, peptides, sex hormones, and controlled substances.
• After Acquiring RANBAXY in the year 2014, Sun Pharma became India’s top pharma company with a
net worth of US$390 million (2019) and around 32, 000 employees (2019).
• Sun Pharma has many other acquisitions and joint ventures with many foreign companies that proved to
be the major milestones for the company’s development and success. This year company commercialized
ILUMYA TM, YONSATM, and XELPROSTM in the US. CEQUATM is expected to be launched in the
US in FY20.
• The company is expecting to continue to build a global specialty pipeline with focused research and
development (R&D) investments with its demerged arm SPARC. The principal focus areas for specialty
portfolio include segments like dermatology, ophthalmology and oncology.
15

16. 2. Cipla:
• Cipla was founded by Khwaja Abdul Hamied as ‘The Chemical, Industrial and Pharmaceutical
Laboratories’ in 1935 in Mumbai. Cipla has a major sell of Active Pharmaceutical ingredients
to other manufacturers for marketing. It also has a sell of pharmaceutical and personal care
products, including Escitalopram (anti-depressant), Lamivudine and Fluticasone propionate.
• The company is the world’s largest manufacturer of antiretroviral drugs and a therapy leader in
India for anti-malarial with a market share of over 34%. The company manufactured the
world’s first oral iron chelator with the name, Deferiprone in 1995.
• Cipla has 34 manufacturing units in 8 locations across India and a presence in over 80
countries with around 26000 employees working in making Cipla one of the top
pharmaceutical companies in India as well as in the world.
• Cipla has a total net worth of US$4 billion with an increase of 4.83 % over the revenue. The
company spends over 7.4% of its revenue on R&D activities.
• The primary focus areas for R&D is the development of new formulations, drug-delivery
systems, and APIs. The company also focuses on closely monitoring the repurposing and
repositioning of existing drugs. The interesting area of research includes prodrugs,
metabolites, liposomal drugs, Nano-particles and many more. The ultimate objective is to
develop products for faster regulatory approvals in the niche market.
16

17. 3. Aurobindo Pharma
• Aurobindo Pharma Limited is a pharmaceutical manufacturing company headquartered in
HITEC CITY, Hyderabad, India.
• The company was founded by P.V. Ramprasad Reddy and K. Nityanand Reddy in 1986 but
commenced operations in 1988-89 with a single unit manufacturing semi-synthetic penicillin
(SSP) in Puducherry.
• Aurobindo Pharma has a key presence in therapeutic segments such as neurosciences,
cardiovascular, anti-retroviral, anti-diabetics, gastroenterology, and cephalosporins.
• The company has 2 manufacturing facilities worldwide with 22000+ employees globally. The
company manufactured more than around 33 billion diverse dosage forms in 2018-19 making
revenue of US$ 2.8 billion in 2018-19.
• The company has launched 50 new products, including 12 injectables in the market in 2018-
19.
• Aurobindo Pharma plans to expand its product portfolio with high-value products in oncology,
hormones biosimilars and novel drug delivery solutions like depot injections, inhalers, patches,
and films.
• The company focuses on scaling up to LEAP ahead where LEAP stands for Lead with a range
of products; Expand into new areas; Attaining capabilities and strengthening compliance;
Promote an execution-oriented growth mindset.
17

18. 4. Dr. Reddy’s Laboratories Limited
• Dr. Reddy’s was founded in 1984 by Anji Reddy in Hyderabad, Telangana, India.
• The company began as a supplier to Indian Drug manufacturers. Over 190 medications and 60
API.
• In 1987, Reddy's launched Norilet, the company’s first recognized brand in India.
• Reddy’s also became the first Indian company to export the active ingredients for
pharmaceuticals to Europe.
• The company had a total revenue of US$2.1 billion in 2017-18. Around 22000 employees
work worldwide for Dr. Reddy’s Pharma.
• The top active pharmaceutical ingredients from Dr. Reddy’s Pharma include ranitidine,
losartan, clopidogrel, Ramipril, atorvastatin, and many others.
• In 1992, Reddy’s formed a joint venture with Biomed, the biggest pharmaceutical producer in
Russia.
• Reddy’s also involved in targeting specialty generics products in western markets to create a
foundation for drug discovery.
• In 1992, Dr. Reddy’s research foundation was established in order to do research in the area of
new drug discovery. Reddy’s research thrust focuses on large niche areas in western markets –
anti-cancer, anti-diabetics, cardiovascular and anti-infection drugs.
18

19. 5. Lupin Limited
• Headquartered in Mumbai, Maharashtra, India, Lupin Limited is a multinational
pharmaceutical company founded by Desh Bandhu Gupta in the year 1968.
• The company is a significant player in key therapy areas such as pediatrics, cardiovascular,
anti-infectives, diabetology, asthma, and anti-tuberculosis from which collected total revenue
of INR 155.77 billion in 2018-19.
• Lupin stands 1st in the anti-TB segment globally. Around 50000 employees work globally for
the company’s progress and development.
• It is 8th largest generic company by revenue.
• The company’s research program covers the entire pharma product chain. Lupin’s R&D covers
generics research, process research, pharmaceutical research, ADDS research, intellectual
property management, Novel Drug Discovery and Development, and biotechnology research.
• In FY 2019, the company launched 22 new products in the US market. The company launched
Solosec® successfully in the US and started women's health specialty business in full
intensity. The company also launched the first orphan drug - NaMuscla® in the UK, Germany,
and France.
• The company also focuses on social responsibility and thus, has a foundation under the name
The Lupin Human Welfare and Research Foundation (LHWRF).
• In FY 2020, Lupin is planning to bring its first biosimilar to market, commercialize its first
inhalation product in the US and launch an injectables portfolio.
19

20. References:
• Top 10 pharmaceutical companies in India https://www.pharmajobportal.com/2019/11/top-pharma-
companies-in-india.html
• Top pharma companies in India https://www.moneyworks4me.com/best-index/bse-stocks/top-
pharma-companies-in-india/
• Indian pharmaceutical industry https://www.ibef.org/industry/pharmaceutical-india.aspx
• Evaluate pharma world preview https://info.evaluate.com/rs/607-YGS-
364/images/EvaluatePharma_World_Preview_2019.pdf
• Global Pharmaceutical Industry - Statistics & Facts https://www.statista.com/topics/1764/global-
pharmaceutical-industry/
• The Growing Pharmaceuticals Market: Expert Forecasts and Analysis
https://blog.marketresearch.com/the-growing-pharmaceuticals-market-expert-forecasts-and-
analysis
• https://pharmastate.blog/indian-pharma-industry-snapshot-2018/
20

21. THANK YOU
21