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- 2. OBJECTIVES OF MYSTUDY ON PHARMACEUTICAL Know the current scenario of pharmaceutical industry. Know the working of the pharmaceutical industry. To know about their distribution channel.
- 3. OVERVIEW OF PHARMACEUTICALINDUSTRY 1.1 INTRODUCTION The pharmaceutical industry is the world’s largest industry due to worldwide revenues of approximately US$2.8 trillion. The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest in terms of value, as per a report by Equity Master. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global EXPORTS. The Indian pharmaceutical sector is highly fragmented with more than 21,000 registered Units. It has expanded drastically in last 2 decades. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
- 4. 1.2 Market Size TheIndian pharma industry, which is expected to grow over 15 per cent per annum between 2015 and 2020, will outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same periods. The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the sixth largest pharmaceutical market globally by absolute size, as stated by Mr. Arun Singh, Indian Ambassador to the US. Branded generics dominate the pharmaceuticals market, constituting nearly 80 per cent of the market share (in terms of revenues).
- 5. 1.3 The Indiapharmaceutical Exports: 1.3.a The Growth Story While India continues to be a major exporter of generic to traditional markets such as US, UK, Russia, etc, it is also increasing its reach to other nations like Canada, Germany, Brazil, Japan, etc The India pharmaceutical industry is the largest supplier of cost effective generic medicines to the developed world. India Exports of Pharmaceutical Products 1996-2017 | Data
- 7. •1.4 Advantages inIndia •The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide range of specialties involving complex drugs manufacture, development, and technology. Pharmaceutical companies in India are growing at the rate of 4.5 billion, registering further growth of 8-9% annually. •The reports say that 250 leading Indian pharmaceutical companies control 70% of the market. India has a pool of personnel with high managerial and technical competence as also skilled workforce. •Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. India has a solid legal framework and strong financial markets.
- 8. Company Name Salesin INR billion Cipla 69.77 Ranbaxy Lab 76.86 Dr Reddy’s Labs 66.86 Sun Pharma 40.15 Lupin Ltd 53.64 Aurobindo Pharma 42.84 Jubilant Life 26.41 Cadila Health 31.52 Ipca Labs 23.52 Wockhardt 26.50 2. MAJOR PHARMACEUTICAL COMPANIES IN INDIA 2.1Some of the leading Indian players by sales (INR Billion)
- 10. 2.2 LOCATION OFPHARMACEUTICAL INDUSTRY IN INDIA
- 11. UNIT 1 PRODUCTION OFMEDICINES UNIT 2 Now Empty 3. FINDINGS Cipla: Cipla was founded by khwaja Abdul Hamied in 1935 and was known as The Chemical, Industrial and Pharmaceutical Laboratories, through it is better known by the acronym Cipla Today. Cipla was registered in august, 1935 as a public limited enterprise and it began with an authorized capital of Rs 6 lakh. Through set up in 1935, it was only in 1937 that Cipla also has an extensive export market and regularly exports to more than 150 countries in regions such as North America, South American, Asia, Europe, Middle East, Australia, and Africa. For the year ended 31st March, 2007 Cipla’s exports were worth approximately Rs 17,500 million. Cipla is also considerably well known for its technological innovation and processes for which the company received know-how loyalties to the tune of Rs. 750 million during 2006-07. HEADQUATER: MUMBAI KEY PEOPLE: Y.K Hamied, chairman Umang Vohra, (CEO) PRODUCTS: Pharmaceuticals and Diagnostic. EMPLOYEES: 22,036 3.1CIPLA BADDI PLANT
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- 14. NATIONAL SALES MANAGER ZONAL SALES MANAGER REGIONALSALES MANAGER AREA SALES MANAGER ORGANISATION STRUCTURE CEO MR (MAKETING EXECUTIVE),(MARKITING REPERSENTATOR AROMED STORE C&F(Carry and Forward)AGENTS STOCKIST/WHOLESALE R RETAILOR CONSUMER CIPLA , RANBAXY,LU PIN, SUN PHARMA
- 15. CHAPTER 4 Government initiativesin the industry The government has taken various policy initiatives for this industry: The government is planning to set up Rs 1000 crore venture capital funds to boost domestic pharma industry and provide cheaper loans to entities looking to establish or upgrade manufacturing facilities. The government is working on various proposals, including single win clearance for drug approvals, to rejuvenate the local pharma sector and make medicines more affordable. In order to promote the pharmaceuticals manufacturing, the government is set to approve six pharma parks this year at an estimated investment of Rs 180 crore, which will have sufficient infrastructure and facilities for testing and treatment of drugs and also for imparting training to industry professionals. The Government of India plans to set up around eight mini drug-testing laboratories across major ports and airports in the country, which is expected to improve the drug regulatory system and infrastructure facilities by monitoring the standards of imported and exported drugs and reduce the overall time spent on quality assessment. India is expected to rank among the top five global pharmaceutical innovation hubs by 2020, based on Government of India's decision to allow 50 per cent public funding in the pharmaceuticals sector through its Public Private Partnership (PPP) model.
- 16. Investments The Union Cabinethas given its nod for the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent under the automatic route for manufacturing of medical devices subject to certain conditions. The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 13.85 billion between April 2000 and March 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Some of the major investments in the Indian pharmaceutical sector are as follows: •India’s largest drug maker Sun Pharmaceutical Industries Limited has entered into a distribution agreement with Japan's Mitsubishi Tanabe Pharma Corporation to market 14 prescription brands in Japan. •Lupin Ltd plans to acquire a portfolio of 21 generic brands from Japan-based Shionogi & Co Ltd for Rs 10.08 billion (US$ 150.3 million), which will help to strengthen its presence in the world’s second largest pharmaceutical market. •International Finance Corporation (IFC), the investment arm of the World Bank, plans to invest upto US$ 75 million in Glenmark, which is looking to raise around US$ 200 million for expansion and the launch of several new products in India and other emerging markets over the next three years.
- 17. •Cipla Limited plansto invest around Rs 600 crore (US$ 89.47 million) to set up a biosimilar manufacturing facility in South Africa for making affordable cancer drugs and growing its presence in the market. Cipla Ltd, one of the major pharmaceutical and biotechnology companies in India, has acquired two US-based generic drug makers, InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc., for US$ 550 million, which is expected to strengthen Cipla's US business.
- 18. CHAPTER 5 INDUSTRY CHALLENGES Tomorrow’schallenge is to develop new medicines that can prevent or cure currently incurable diseases. Today’s challenge is to get to tomorrow – and that’s a tall order in itself. Rising customer expectations: The commercial environment is getting harsher, as healthcare payers impose new cost constraints on healthcare providers and scrutinize the value medicines offer much more carefully. They want new therapies that are clinically and economically better than the existing alternatives, together with hard, real-world outcomes data to back any claims about a medicine’s superiority. Highly fragmented industry: The Indian pharma industry is highly fragmented. The market is overloaded with generic manufacturers. Low margin of profits due to government pricing policies – Drug Price Control Order The main issue raised by most of the pharma companies is that the profits which they earn are basically peanuts and this income is not sufficient enough. The companies sight that the reforms of the Government for the essential medicines has caused them to lower the price of drugs. This has been done by the Government for the betterment of the public. So the Government has to think of a way to promote the pharma companies as well. Funding for the pharma companies might be a way to move forward. Low input for research and development due to pricing norms The above mentioned challenge directly affects the R&D of the companies. Why? Simple enough answer, the lower the profits for the companies, the lower the investments. So the companies sight that due to the low income they are not able to develop products the way they want.
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