A short presentation on the Pharmaceuticals industry in India, the key companies, issues plaguing the industry and the possible solutions

1. PHARMACEUTICAL
INDUSTRY IN INDIAMADE BY:
ANEESH S.V.L.S
S. RAM NIKHIL
PRAVEEN SINGH

2. INTRODUCTION
Indian pharmaceutical sector industry supplies over 50 per cent of global demand for various vaccines, 40 per
cent of generic demand in the US and 25 per cent of all medicine in the UK
Second-largest share of pharmaceutical and biotech workforce in the world; world’s leader in Drug Master Files
(DMFs) applications with the US
35-38% of total Abbreviated New Drug Applications(ANDA) approved (including 25 to 30 percent of total
injectable ANDAs) have been filed from Indian sites in past 5 years
Received cumulative FDI worth US$ 15.83 billion between April 2000 and June 2018; pharmaceutical exports
stood at US$ 17.27 billion in FY18 and US$ 7.67 billion in FY19 (up to August); expected to cross US$ 19 billion
Sector valued at US$ 33 billion in 2017; grew 9.7 per cent in Jul-Sep 2018 and stood at Rs. 1.26 trillion (US$
17.95 billion) for the Moving Annual Total (MAT) ended September

4. KEY PLAYERS IN THE INDUSTRY

5. PERFORMANCE, MARKET STRUCTURE
AND PRICING
Two goals of pharma industry:
 Improve competitiveness in the market for drugs
 Ensure the industry’s technology advances at a
reasonably fast rate
Structurally competitive, with low overall
concentration; heavily regulated in all major
functions
Market access is conditioned through satisfaction
of certain safety standards
Influenced by a host of practices
Most important critical success factors in the
pharmaceutical branch are customer orientation
and social responsibility
Large MNCs operate as originator drug
companies and generic companies along with
large Indian generic companies
Medium and small scale industries also engaged
in production of branded generics and contract
manufacturing-related activities
Most units in small scale sector engaged in
production of generic-generic medicines
Sales are largely driven by nature, operation and
brand of the firm
Passive market power and information
asymmetries can lead to higher market shares

6. ISSUES PLAQUING THE INDUSTRY
Inadequate funds
 Restricted funding from FIs, venture capitalists
(VCs) and the government
 may decelerate the expansion of biotechnology
sector in India
Regulatory impediments
 Rising of due meticulousness and conformity
with product standards
 leads to high costs and interruption in the launch
of new products
Severe competition
 Low margins and restricted capital to assist R&D
 result of intense pricing competition among local
producers.
 This rivalry will only deepen further as big drug
companies join in to control the cost benefit and
large reserve sources.
Biosimilars
 Growing segment; potential to divert market
share from small molecules

7. HISTORICAL DATA

8. CONCLUSION
Medicine spending expected to increase at 9-12 per cent CAGR between 2018-22 to US$ 26-30
billion
Better growth in domestic sales would depend on ability of companies to align their product
portfolio towards chronic therapies for diseases, such as cardiovascular, anti-diabetes, anti-
depressants and anti-cancers
Government has taken many steps to reduce costs and bring down healthcare expenses
Speedy introduction of generic drugs into the market has remained in focus and is expected to
benefit Indian pharmaceutical companies
Focus on rural health programmes, lifesaving drugs and preventive vaccines also bodes well for
the pharmaceutical companies.

9. REFERENCES
Indian Pharmaceuticals Industry Analysis: A Sectoral Presentation, India Brand Equity
Foundation (https://www.ibef.org/industry/indian-pharmaceuticals-industry-analysis-
presentation)
Indian Pharma Industry: Infographic on Growth of Pharmaceutical Industry in India, India Brand
Equity Foundation (https://www.ibef.org/industry/pharmaceutical-india/infographic)
The Market Structure of Industry and Pricing Behaviour in a developing Economy: An Analytical
Study of Pharmaceutical Industry of India, Niharika Sunil Bajeja, Department of Economics,
Rajkot (http://shodhganga.inflibnet.ac.in/bitstream/10603/46827/17/17_synopsis.pdf)