The pharmaceutical industry is focused on the discovery, development, production, and marketing of drugs, with major global players like Johnson & Johnson and Pfizer leading in revenue. The Indian pharmaceutical sector has evolved significantly over the decades, now accounting for 2.4% of the global market, with a strong emphasis on generic drug manufacturing. With initiatives like 'Pharma Vision 2020', India aims to become a major hub for drug discovery and increase its market share significantly by 2020.

2. Pharmaceutical industry
Overview of industry
The pharmaceutical industry discovers, develops, produces,
and markets drugs or pharmaceutical drugs for use as
medications.
Pharmaceutical companies may deal in generic or brand
medications and medical devices.

3. Global Players of
Industry
1. Johnson & Johnson
With nearly US$71.89
billion more in revenue,
Johnson & Johnson is by
far the world’s largest
pharmaceutical company
based on revenue.

4. 2. Pfizer (US$52.82bn)
In second place, American
biopharmaceutical company
Pfizer has moved up two
places from last year. The
company focuses on a wide
range of therapy areas
including oncology,
neuroscience, metabolic
diseases and rare disease, as
well as developing vaccines.

5. 3. Roche (US$50.11bn)
In the top three
pharmaceutical companies of
2017 is another Swiss-based
pharma, Roche. The company
develops drugs and
diagnostic instruments and
has a presence in Europe,
North America, South
America and Asia.

6. 4. Novartis (US$48.52bn)
Swiss pharmaceutical
company, Novartis, develops
pharmaceutical products in
the areas of pharmaceuticals,
oncology, generics and
biosimilars.

7. 5. Merck & Co.
(US$39.8bn)
Merck & Co. is a US
pharmaceutical company
headquartered in New Jersey.
Merck has maintained steady
market growth throughout 2016
and into 2017. Notably, their
non-small cell cancer drug
Keytruda gained regulatory
approval from the FDA and
EMA and is expected to be
a ‘game-changer’ for lung
cancer patients worldwide.

8. • According to Evaluate consensus forecast, the
pharmaceutical industry is set to grow at 6.5% per year
(CAGR) to reach $1.06trn by 2022.

10. Evolution of Indian pharmaceutical Sector
Phase-1 (1970-90)
• Indian Patent Act passed in 1970
• Several domestic companies start operations
• Development of production infrastructure
• Export initiatives taken

11. Phase-2 (1990-2010)
• Liberalised market
• Indian companies increasingly launch operations in
foreign countries
• India a major destination for generic drug manufacture
• Approval of Patents (Amendment) Act 2005, which led
to adoption of product patents in India

12. Phase-3 (2010)
• Increased patent filings by pharma players
• Likely adoption of newer sales models such as channel
management, KAM and CSO
• The National Pharmaceutical Pricing Policy, 2012
(NPPP-2012)

13. Phase-4 (2010-15)
• National Health Policy Draft 2015 to increase expenditure in health care sector.
• Patent Act Amendment 2015, it includes amendments in Patent Act 2002
• 2014: 100 per cent FDI allowed in medical device industry. The investment will
be routed through automatic route
• 2013: New Drug Pricing Control Order issued by Directorate of Food and
Drugs this will reduce the prices of drugs by 80 per cent.
• Leading Indian pharma companies are raising funds aggressively to fund
acquisition in domestic as well as international market to increase their product
portfolios.
• 2015: India has 10,500 manufacturing units and over 3,000 pharma companies

14. Phase- 5 (2016 Onwards)
• In Union Budget, 2016, FDI increased to 74 per cent in
existing pharmaceutical companies
• The Government of India unveiled 'Pharma Vision 2020'
aimed at making India a global leader in end-to-end drug
manufacture. Approval time for new facilities has been
reduced to boost investments.

15. Structure of Pharmaceutical Sector in India

17. Top 10 Indian Pharma Players
1. Sun Pharmaceutical Industries Ltd
2. Lupin
3. Dr. Reddy’s Laboratories
4. Cipla
5. Auro bindo Pharma Limited
6. Cadilac Pharmaceuticals Limited
7. Divi’s Laboratories
8. Glaxo smith kline
9. Glen mark
10.Torrent Pharma

18. Domestic Overview
• Indian pharmaceutical sector accounts for about 2.4 per
cent of the global pharmaceutical industry in value terms
and 10 per cent in volume terms and is expected to
expand at a Compound Annual Growth Rate (CAGR) of
15.92 per cent to US$ 55 billion by 2020 from US$ 20
billion in 2015.

19. • Indian drugs are exported to more than 200 countries in
the world, with the US as the key market. Generic drugs
account for 20 per cent of global exports in terms of
volume, making the country the largest provider of
generic medicines globally and expected to expand even
further in coming years.
• The Government of India plans to set up a US$ 640
million venture capital fund to boost drug discovery and
strengthen pharmaceutical infrastructure. The ‘Pharma
Vision 2020’ by the government’s Department of
Pharmaceuticals aims to make India a major hub for
end-to-end drug discovery.

20. Indian Pharma Sector Revenue
• The Indian pharmaceuticals market witnessed growth at
a CAGR of 5.64 Percent, during 2011-16, with the
market increasing from US$ 20.95 billion in 2011 to
US$ 27.57 billion in 2016.
• By 2020, India is likely to be among the top three
pharmaceutical markets by incremental growth and 6th
largest market globally in absolute size.

23. Industry Organization

24. • Structure
• Indian top 10

25. Bibliography
• https://www.google.com/search?q=patent&oq=patent&aqs=chrome..69i57.6686j0j7&
sourceid=chrome&ie=UTF-8
• https://www.google.com/search?q=generic+drug&oq=generic+drug&aqs=chrome..69
i57j0l5.4696j0j9&sourceid=chrome&ie=UTF-8
• https://www.ibef.org/industry/indian-pharmaceuticals-industry-analysis-presentation
• https://www.ibef.org/uploads/industry/Infrographics/large/Pharmaceuticals-
jul2017.jpg