HISTORY » THE ORIGIN OF

MEDICINES »

MEDICINES OF ANCIENT
CIVILISATION
 Medicinal preparations made from plants,
animals or minerals.

 Egyptians treated constipation with senna pods

and caster oil.

 Plants containing digital like compounds (cardiac

stimulants) used to treat various ailments.
 EVOLUTION OF PHARMACEUTICAL
INDUSTRY
Advance in medical science and
technology.
Urbanization
Population Growth
Mass Production
Advertising and mass marketing.
1901 :- BENGAL CHEMICALS AND PHARMA WORKS
(CALCUTTA)

1902 :- government first required to secure

licenses

1906 :- Pure Food and Drug Act of was passed.

 Introduction to Indian
pharmaceutical industry
Two percent of the world's pharmaceutical
market.
Estimated market value of about US $8 billion.
4th rank in terms of total pharmaceutical
production.
13th in terms of value.
Growing at an average rate of 7.2 %.
Expected to grow to US $ 12 billion by 2010.
 INDIAN PHARMACEUTICAL MARKET

DOMESTIC MARKET OVERSEAS MARKET

 Ethical drugs
The Export generic drugs
 Over the counter (OTC) and APIs
drugs Contracted Research and
 Active pharmaceutical Manufacturing Services
ingredient (API) market (CRAMS)
 KEY CHARACTERISTICS OF INDIAN
PHARMA SECTOR

Pharmaceutical Regulatory
Bodies in India

National Pharmaceutical Pricing

Authority (NPPA)
Central Drugs Standard and Control
Organization
Department
(CDSCO) - of Chemicals &
Petrochemicals (DCP)
Major Players
 Ranbaxy Laboratories (Rs 25,196.48 crore)

 Dr Reddy’s Laboratories (Rs 4,162.25 crore)

 Cipla (Rs 3,763.72 crore)
 Sun Pharma Industries (Rs 2,463.59 crore)
 Lupin Labs (Rs 2,215.52 crore)
CURRENT SCENARIO

THE GROWTH SCENARIO

FACTORS LEADING TO THE GROWTH
OF PHARAMACEUTICAL INDUSTRY
Economic Growth

Population growth

Increase in chronic diseases

Healthcare infrastructure growth

Growth of health insurance

Low manufacturing costs

Role of Pharmaceutical Industry in India
GDP
Facts
Pharmaceutical Industry in India-Growth
Role of Pharmaceutical Industry in India
GDP-India Advantage
Investment in the sector
FDI Inflow in the sector
Exports in financial years
Effect of recession

Recession Proof Business.

career in the pharmaceutical industry

as evergreen.
fastest growing manufacturing industries
WHAT INDIA CAN OFFER TO WORLD
MARKET

Contract manufacturing for Global Supply of APIs

Quality Generic Products

Process Technologies

Pharmaceutical Manufacturing
Equipment

Alternate Medicines - Ayurvedic & Herbal

 CHALLENGES AND
OUTLOOK

• Government policies regarding range of price

increase

• Increase in prices of raw materials

• Increasing competition
 TARGET COMPANY COUNTRY TARGET ACQUIRER PRICE IN CRORES
Natrol US Plethico Pharma US $ 80.7mn
Bell, Sons and UK Marksans Pharma Ltd US$ 20-30 mn
Co(Druggist)Ltd

Axicorp GmbH Germany Biocon Euro 30mn

Jamnes Robinson UK Vivemed Laboratories US$ 30 mn

Dowpharma UK Dr. Reddy’s Laboratories Ltd. US $ 30 mn

Jet Generici Srl US Dr. Reddy’s Laboratories Ltd Euro 1.5 mn

DRAXIS Health Canada Jubilant Organosys US$255 mn
Alcon US Novartis AG US$11 bn
BASF’s Pharamectical US Dr. Reddy’s Laboratories Ltd US$40mn
 SWOT ANALYSIS
STRENGHTS
•Cost Competitiveness
•Strong manufacturing base
•Established network of laboratories and R&D
infrastructure
•Highly trained scientists
•Strong marketing and distribution network
•Rich biodiversity
•Largest number of US FDA approved plants
Opportunities
•Significant export potential
•Licensing deals with MNCs
•Marketing alliances to sell MNC products
in Indian market
•Contract manufacturing agreements with the
MNCs
•Potential for developing India as a centre for
international clinical trials
WEAKNESSES
•Low investments in innovative R&D
•Lack of resources to compete with MNCs
•Inadequate regulatory standards
•Production of spurious and low quality
drugs spoils the image of the industry in
international arena
Threats
•Product patent regime poses serious
challenge unless it invests in R&D
•DPCO puts unrealistic ceilings on product
prices & profitability & prevents in
generating investible surpluses
•Export effort hampered by procedural
hurdles & non tariff barriers imposed
abroad
•Lowering of tariff protection
RECOMMENDATION
RIGHT PRODUCT-MIX

CORE COMPETENCIES

MERGER AND ACQUISITION

REFOCUS AND INVEST HEAVILY IN

R&D. 
ADVANCES IN BIOTECHNOLOGY AND
INFORMATION TECHNOLOGY
FINDINGS AND CONCLUSION
Between 2007-08 and 2011-12 expected CAGR might be 16%.

Export market is growing much faster than the domestic

market.

Future will see strong growth in the specialty branded generics

and patented drug segments.

Drugs for diabetes and cardiovascular diseases are expected to

see the fastest growth among all therapy areas during 2007-2011.

Vast opportunity exists for the organized market.

Cipla, Ranbaxy and GlaxoSmithKline are controlling the top

three positions in the Indian pharmaceutical market.
 PHARMA DIARY…..
2009,June 30 – APOLLO HOSPITALS het rises 16% to Rs.
118 Crore.
2009, Aug 26 – FORTIS took over WOCKHARDT.
2009, Sept 2 – RANBAXY gets TAMIFLU nod.
2009, Sept 8 – SUVEN gets MILESTONE PAYMENT from ELI
LILLY.
2009, Sept 11 – Is GLAXO circling Dr. REDDY.
2009, Sept 11 – OGLEMILAST is not dead, not yet, says
GLENMARK chief.
2009, Sept 14 – WOCKHARDT offers 65% haircut to FCCB
HOLDERS.
2009, Sept 14 – REDDY’S gets US FDA nod, launches
STARLIX CLONE.
 Continued…..
• 2009, Sept 18 – GLAXO seen in talks to pick up 5% in Dr. REDDY.

• 2009, Sept 18 - NATCO PHARMA launches anti-swine flu drug

NATFLU

• 2009, Sept 20 - SUN PHARMA to file 30 applications for

generic drugs in US
•