Pharmaceutical Industry

Submitted by- ankit mishra

1. Introduction 2. About indian pharma industries 3. Growth of pharma industries 4. Key players 5. Market share 6. Key products 7. Impact on G.D.P. 8. S.W.O.T.analysis 9. Conclusion

INTRODUCTION
Pharmaceutical

Industry in India is one of the largest and most advanced among the developing countries Indian pharmaceutical industry has come a long way from waiting for imports of bulk drugs from global players to breaking new grounds in medical research worldwide.

The

INDIAN PHARMACEUTICAL INDUSTRY

IPI is

ranked 4th in volume terms and 11th in value terms globally. Around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and vaccines is met by IPI. The Pharmaceutical industry in India is fragmented with over 3,000 small/medium sized generic pharmaceutical manufacturers.

GROWTH OF THE INDUSTRY

Worth

of the pharma industry $ 6

billion Accounts for - 1% of the world's pharma industry in value terms and 8% in volume terms. . Revenues generated - US$ 7.6 bn and have grown at an average rate of 10% over last five years

KEY PRODUCTS
Medicines Medical equipments Surgical goods Operation accessories I.V.fluids Injections

Key players in pharmaceutical industries

Ranbaxy* Dr. Reddy's Cipla Lupin Nicholas Piramal Sun Pharmaceuticals GSK Cadila Healthcare Aurobindo Wockhardt*

MARKET SHARE
Sales
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

3% 9%

33% 55%

IndianTraditional MedicineMarket Size, 2009 (USD m) Ayurveda-55% Homeopathy-33% Unani-9% Biochemic-3% Indian Traditional Medicine System (ISM) -2009 ISM market for products in India in 2006 USD 400m, grew at 8% Over 82% of it Ayurveda,

ROLE OF PHARMACEUTICAL INDUSTRY IN INDIAS GDP

It

ranks 4th in the world, pertaining to the volume of sales The estimated worth of the Indian Pharmaceutical Industry is US$ 6 billion The growth rate of the industry is 13% per year The current revenues are estimated at US$5.5 billion and it is expected to grow at a compounded annual growth rate of 19% and touch US$25 billion in revenue by 2015.

Strengths :1.Cost Competitiveness 2 Developed Industry with Strong Manufacturing Base 3.Well Established R&D infrastructure 4. Access to pool of highly trained scientists, Weaknesses:1. Low investments in innovative R&D. 2. Lack of resources to compete with MNCs for New Drug Discovery & Research 3. Lack of strong linkages between industry and academia.

Opportunities :1. Significant export potential. 2. Marketing alliances for MNC products in domestic market and international market. 3.Contract manufacturing arrangements with MNCs

Threats :1.Product patent regime poses serious challenge to domestic industry unless it invests in research and development 2. R&D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement 3. Export effort hampered by procedural hurdles in India as well as non-tariff barriers imposed abroad.

FUTURE OF INDIAN PHARMA INDUSTRY

The key

to survival would be the exponential growth of R&D expenditure. Indian companies need product patent protection to encourage research in developing inexpensive drugs that suit the Indian disease profile. The obligations imposed on India are going to have a significant impact on Indias successful bulk and formulation-oriented pharmaceutical industry. Indian companies could focus on producing patented drugs under license from foreign companies or generating revenues from producing generic drugs.

CONCLUSION
Pharma industry being a growth industry Unaffected by the business cycle As per the present growth rate, the Indian Pharma Industry is expected to be a US$ 25 billion industry by the year 2015 India has  competitive strength in research services  availability of low cost skilled doctors and scientists  large patient population with diverse disease characteristics  adherence to international quality standards VLSS agencies recommends investment in this industry to be a wise decision.