INDIAN PHARMACEUTICAL

INDUSTRY

India ranks third for pharma manufacturing

volume and 14th in terms of value.
The Indian pharmaceuticals industry has grown
from a mere $0.3billion in 1980, to $18 billion in
2014.
Branded generics dominate the market, making
up 70-80% of it.
The local companies enjoy a dominant position
due to their development capabilities and early
investment
The price of drugs is very low, due to intense
competition.
By 2018, the patent cliff" will wipe an estimated
$148 billion off pharmaceuticals industry
revenues due to many drugs coming out of
patents
Rising cost of R&D, the cost of bringing a
molecule to market globally is estimated to be
from $800 million to $4 billion
Increasing government pressure, with harsher
price controls and taxes.
European Medical Agency (EMA) and the US Food

UK PHARMACEUTICAL INDUSTRY

It is fifth largest in the world by total sales,

representing 7% of world sales, after the US,
Japan, Germany and France.
The UK is the third largest direct exporter of
pharmaceuticals and accounts for 10% of world
pharmaceutical R&D expenditure
Thepharmaceutical industry in the United
Kingdomdirectly employs around 72,000 & it
generated a trade balance of over 5bn per
annum for the last 5 years.
The global pharmaceutical industry has
undergone significant changes in growth rates
over the last 8 years with a marked slowing for
prescription drug annual sales growth rates.
Forecasts for future growth indicate that the
industry, as a whole, is unlikely to enjoy growth
rates of greater than 3-4% per annum going
forward.
A number of factors will determine an individual
companys future growth rate; most important
will be the rate of launch of new products,
exposure to patent expiry and geographical
penetration into high growth markets

SWOT Analysis Of Indian Pharmaceutical Industry

Strengths

Weaknesses

Opportunities

Threats

Low cost of skilled

manpower

Stringent pricing
regulations

Increase in per
capita income

Other low cost

countries affecting
demand

Access to large pool

of highly trained
scientists

Poor transport and

medical infrastructure

Global demand for

generics rising

Lack of data
protection

Increasing
population with more
sedentary lifestyle

Strong marketing
and distribution
network
Proven track record
in design of high
technology
manufacturing
devices
Low cost of
innovation,
manufacturing and
operations

Poor health
insurance coverage
Production of low
quality drugs
tarnishes image of
industry abroad
Low investment in
innovative R&D

Increasing health
insurance sector
Significant
investment from
MNCs
Medical tourism &
Cheap, diverse
clinical trials

Government
regulations changing
Lack of investment in
infrastructure
Wage inflation
R&D restricted by
lack of animal testing
and outdated patient
office

SWOT Analysis Of UK Pharmaceutical Industry

Strengths

Weaknesses

Opportunities

Threats

An impressive
record of
pharmaceutical
innovation

The cost of
conducting medical
research in the UK is
second only to the US

Increasing demand for

pharmaceutical
products

Regulatory
environment is
becoming more &
more stringent

A relatively rapid
regulatory process
for medicines
compared to other
countries
State-of-the-art
laboratory
equipment
High return on
investment (ROI)
Low cost of
innovation,
manufacturing and
operations

Authorization
to
conduct early stage
trials in animals has
to be obtained from
the
Animals
Procedures
Committee
of
the
Home Office
A
strong
pound
sterling
makes
matters
worse
for
overseas companies.
There is a shortage of
appropriately trained
clinical investigators
in the UK

Strategic agreements
with pharmaceutical
companies and
organizations of other
countriestoboostits
research

a declining
economy
Adverse drug
reactions are
responsible for
about 5% of all
admissions to
hospitals in the UK