The document discusses the evolution of the Indian pharmaceutical industry over five phases from 1950 to 2010. It describes the industry's size, major players, exports, and relationship to GDP. The industry has grown from being dominated by foreign companies to becoming a major domestic and international player. It faces strengths in areas like manufacturing but weaknesses in research and development. Opportunities for growth include increased exports and partnerships with multinational companies. Threats include pressure from patent regulations and drug price controls. The industry is projected to continue strong growth and become a $20 billion market by 2015.

1. By Abhishek Sharma
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2.  Indian Pharmaceutical Evolution
 Pharmaceutical Market(CDSCO)
 Major Players
 SWOT Analysis
 GDP Relation
 Future
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3. Indian Pharmaceutical Industry Evolved in
Five Phases
 Phase 1- Early Years (1950-1970)
Foreign companies dominating the Market
Absence of organized Indian companies
 Phase 2 – Government Control (1970-1980)
Indian Patent Act-1970
Drug prices capped
Local companies begin to make impact
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4.  Phase 3 – Development Phase (1980-1990)
Development in process
Infrastructure creation
Initial stage of export market
 Phase 4 – Growth Phase (1990-2000)
Expansion of domestic Market
Development of international Market
Development in research
 Phase 5 – Innovation and Research (2000-2010)
IP law
Discovery research
Convergence
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6.  Industry size Rs. 1 Lakh Crs approx. ($20 bn.) and is
growing at the rate of 14%
 Domestic market size stands at 58 Thousand Crs
approx. equivalent to US $11.6 bn
 Export is approx Rs 42 Thousand Crs ($9 bn.)growing
at the rate of 10% p.a.
 Import is approx Rs 12,500 Crs ($2.2 bn.)
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7.  India is 3rd largest in terms of volume 13th in terms of
value
 Export of Biotech products and Biopharmaceuticals
US $1.36 bn.
 India is 800 WHO-GMP certified and 172 US FDA
Approvals along with 153 EDQM certified facilities
 India has the largest number of manufacturing
facilities outside US
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8.  Drugs from India exported to more than 200 countries
 Vaccines from India are exported to more than 151
countries
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9.  Sun Pharma
Sun Pharma has market Capitalization around
Rs 73,018.88 Cr.
 Cipla
Cipla has market capitalization of around Rs 33,280 Cr.
 Dr Reddys Labs
Dr. Reddys Lab has market capitalization of around
Rs 31,106.79 Cr.
 Lupin
Lupin has market capitalization of Rs 26,196 Cr.
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10.  Strengths
 Cost effective
 Strong Manufacturing Base
 Ability of high quality skilled workforce
 Excellent marketing and distribution network
 Diverse ecosystem
 Weakness
 Less investment is research and development
 Lack of coordination between industry and academic
 Negligible expenditure on healthcare in the country
 Manufacturing of fake and low quality medicines
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11.  Opportunities
 Increased export potential
 Marketing tie ups with multinational companies to sell
their products in domestic market
 Immense scope to position India as a centre for
international clinical trials
 Key player in global pharmaceutical R&D
 Export of generic drugs to developed market
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12.  Threats
 Product patent regime is a major threat to domestic
industry unless the industry takes up R&D initiative
aggressively
 Drug price control order puts undue pressure on
product prices, affecting the profitability of
pharmaceutical companies.
 The new MRP based excise duty regime threatens the
business of smaller pharmaceutical companies
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13.  Pharma industry generally grows at about 1.5-1.6 times
the Gross Domestic Product
 Globally, India ranks third in terms of manufacturing
Pharma products by volume
 According to a study by FICCI-Ernst & Young India will
open a probable US$ 8 billion market for MNCs selling
expensive drugs by 2015
 The study also says that the domestic Pharma market
is likely to reach US$ 20 billion by 2015
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14.  The Minister of Commerce estimates that US$ 6.31
billion will be invested in the domestic pharmaceutical
sector
 Public spending on healthcare is likely to raise from 7
per cent of GDP in 2007 to 13 per cent of GDP by 2015
 Dr Reddy's Laboratories has tied up with
GlaxoSmithKline to develop and market generics and
formulations in upcoming markets overseas.
 Due to the low cost of R&D, the Indian pharmaceutical
off-shoring industry is designated to turn out to be a
US$ 2.5 billion opportunity by 2012
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15. Thank You
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