PROJECT ON PHARMA INDUSTRY IN INDIA

Executive Summary Topic Page No 1 3 4 5 8 9 11 12 13 History of Pharmaceutical Sector SWOT Analysis Industry category and Products Market Share Government Policy Market Players Marketing and Distribution Conclusion Reference .CONTENTS Sl No. 8. 9. 2. 6. 1. 4. 7. 3. 5.

There are about 250 large units and about 8000 Small Scale Units. chemicals. The Pharmaceutical Industry. Following the de-licensing of the pharmaceutical industry. supported by Intellectual Property Protection regime is well set to take on the international market. growing at about 8 to 9 percent annually. with its rich scientific talents and research capabilities. i. drug intermediates. It is an extremely fragmented market with severe price competition and government price control. the Indian Pharma Industry is estimated to be worth $ 4. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share.. It ranks very high in the third world. Technologically strong and totally selfreliant. quality and range of medicines manufactured. International companies associated with this sector have stimulated.. i. capsules. pharmaceutical formulations. the pharmaceutical industry in India has low costs of production. Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. industrial licensing for most of the drugs and pharmaceutical products has been done away with. A highly organized sector. tablets. low R&D costs.000 registered units. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs. almost every type of medicine is now made indigenously. chemicals having therapeutic value and used for production of pharmaceutical formulations.e. These units produce the complete range of pharmaceutical formulations. Playing a key role in promoting and sustaining development in the vital field of medicines. The Indian Pharmaceutical sector is highly fragmented with more than 20. which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). in terms of technology.5 billion.EXECUTIVE SUMMARY The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. innovative scientific manpower. strength of national laboratories and an increasing balance of trade.e. orals and injectibles. assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. medicines ready for consumption by patients and about 350 bulk drugs. . From simple headache pills to sophisticated antibiotics and complex cardiac compounds. It has expanded drastically in the last two decades.

Europe.HISTORY OF PHARMA INDUSTRY The history of Indian pharmaceutical market in 1970’s was almost non-existent. Indian companies are dominating in the marketplace which was traditionally manned by MNCs. imports were Rs 20 bn while exports were Rs87 bn in year 2002. Today. India exports its Pharma Products to various countries around the globe including highly regulated markets of USA. In 1930 in Calcutta the first pharmaceutical company called Bengal Chemicals and Pharmaceutical Works. India pharmaceutical industry ranks 4th in terms of volume and 13th in terms of value. In today’s world. generics. Novel Drug Delivery Systems.72 billion (Rs 55454 crore) in 2008-09 from US$ 6. or Biotechnology etc. The bulk drugs accounts for Rs 54 bn (21%). bulk drugs. In India the output of Indian Pharmaceutical industry increased to Rs260 billion in the financial year 2002. For example it might be anything like formulations. the remaining Rs 210 bn (79%) for formulations.India has gained immense importance and carved a niche for itself in the pharmaceutical domain. There is huge expansion of Domestic Pharma sector which estimated US$ 11.3% of the global pharmaceutical sector. which accounts for 1.S . which still is today as one of 5 government-owned drug manufacturers.88 billion (Rs 32575 crore) in 2003-04. New Chemical Entities. Japan and Australia.

cost manpower in science & technology Proficiency in path-breaking research High-quality formulations and drugs High standards of purity Non-infringing processes of Active Pharmaceutical Ingredients (APIs) Future growth driver World-class process development labs Excellent clinical trial centers Chemical and process development competencies Weaknesses        Low Indian share in world pharmaceutical market (about 2%) Lack of strategic planning Fragmented capacities Low R&D investments Absence of association between institutes and industry Low healthcare expenditure Production of duplicate drugs . low.SWOT Analysis of Pharma Sector Strengths             Cost effective technology Strong and well-developed manufacturing base sss Clinical research and trials Knowledge based.

Opportunities           Incredible export potential Increasing health consciousness New innovative therapeutic products Globalization Drug delivery system management Increased incomes Production of generic drugs Contract manufacturing Clinical trials & research Drug molecules Threats      Small number of discoveries Competition from MNCs Transformation of process patent to product patent (TRIPS) Outdated Sales and marketing methods Non-tariff barriers imposed by developed countries .

WHO.000 manufacturing units. Pharma companies have developed Good Manufacturing Practices (GMP) compliant facilities for the production of different dosage forms. In addition to having GMP. Bulk drugs of all major therapeutic groups. which has now made India TRIPS compliant. for drug and discovery research & development. India possesses the highest number of US FDA approved manufacturing facilities outside the USA and currently tops in filing the drug master files (DMF) with the US FDA. it poses a challenge to the generics industry as it would no longer be able to freely continue with the production of generics of the new patented molecules without license/payment of royalty to the innovator company. The organized sector accounts for just 5% of the industry with around 300 players. Demand from the exports market has been growing rapidly due to the capability of Indian players to produce cost-effective drugs with world class manufacturing facilities. TGA (Australia). A large number of players in the unorganized segment are small and medium enterprises and this segment contributes 35% of the industry’s turnover. requiring complicated manufacturing processes are now being produced in India. This has also facilitated the domestic industry to attract contract manufacturing opportunities in the rapidly growing generics market’s With the introduction of the product patent beginning 01-Jan-05. as well as contract manufacturing. the Indian companies are now exploring new business models such as contract research. A highly fragmented industry. the Indian market has become an attractive option for the introduction of research-based products.PRODUCT CATEGORY AND MARKET SHARE The industry has seen tremendous progress in terms of infrastructure development. MCC (South Africa). . several Indian companies have also been getting plant approvals from international regulatory agencies like US FDA. as given by the Organization of Pharmaceutical Producers of India. MCA (UK). technology base and the wide range of products manufactured. As a result. while a huge 95% is in the unorganized sector. However. the Indian pharmaceutical industry is estimated to have over 10.

the anti-infective top domestic production in volumes. is estimated to be around Rs 160 bn. faster than the acute therapy segment. More than 85% of the formulations produced in the country are sold in the domestic market. In 2005. the proportion of formulations and bulk drugs is in the order of 75:25. the chronic therapy segment accounted for around 26% of the domestic formulation business.In calendar year (CY) 2005. India is largely self-sufficient in case of formulations. . According to estimates. The Indian pharmaceutical industry consists of manufacturers of bulk drugs and formulations.000 formulations manufactured in India in more than 60 therapeutic segments. though difficult to assess. of which 19% came from MNCs while the remaining 81% was contributed by Indian companies. turnover of the organized sector companies aggregated to Rs 302 bn. though some life saving. The chronic therapy segment includes anti-diabetics. Bulk drugs include the active pharmaceutical ingredients (APIs) which are used for the manufacture of formulations. Among the therapeutic segments. cardiac and neuroS-psychiatry formulations. growing at a rate of 10%. There are believed to be over 60. Turnover of players in the unorganized segment. new-generation-technology-barrier formulations continue to be imported.

The company's product range comprises of anthelmintics. IVAX Corp. UK. Nicholas Piramal is the second largest pharmaceutical healthcare company in India.6 crore as compared to Rs 394. Allergan Inc. Italy. Dr. cardiovascular drugs. anti-ulcerants. Stemetil. oncology. The brands manufactured by the company include Gardenal. Phensedyl and Haemaccel. anti-bacterials. Reddy's Q1 FY10 result shows the revenues of the company at Rs... Rejoint. critical care products. For the financial year 2008-09 the company registered an increase of 22% in sales and other income over the previous year. plant supply. Cipla is an Indian pharmaceutical company renowned for the manufacture of low cost anti AIDS drugs. antibiotics. diagnostic kits and biotechnology products.KEY PLAYERS IN PHARMACEUTICALS INDUSTRY      Ranbaxy Laboratories Limited is the biggest pharmaceutical manufacturing company in India. it is the world's second largest pharmaceutical company. commissioning and know-how transfer. The company has 6 FDA plants that produce active pharma ingredients and 7 FDA inspected and ISO 9001 and ISO 14001 certified plants. Glaxo Smithkline (GSK) is a United Kingdom based pharma company. applied for 22 new generic product registrations and filed 4 DMFs. support. 18. engineering. Reddy's Laboratories manufactures and markets a wide range of pharmaceuticals both in India and abroad. Cipla also offers other services like quality control. Ranbaxy Laboratories 2009-2010 Q3 Net Profit Results showed a profit of Rs 116. USA etc. consulting. The company is ranked at the 8th position among the global generic pharmaceutical companies and has presence in 48 countries including world class manufacturing facilities in 10 countries and serves to customers from over 125 countries. F.5 crore deficit. The company's portfolio of pharma products consist of central nervous system. Ismo.189 million which is up by 21%. Supradyn. oncology. Dr. nutritional supplements. project appraisal. Nicholas Piramal has entered into join ventures and alliances with several international corporations like Cheissi. recorded during the corresponding period last fiscal. anti-asthmatics and corticosteroids. The company has 60 active pharmaceutical ingredients to manufacture drugs. During this quarter the company introduced 24 new generic products. . Hoffmann-La Roche Ltd. respiratory.

Zydus Cadila also known as Cadila Healthcare is an Indian pharmaceutical company located in Gujarat. On November 2009.8cr which was increase of 39%. .3cr which is higher than the estimated Rs773cr. vaccines. The net profit was Rs124. anti-infectives and gastro-intestinal/metabolic products among others. the increase was on account of higher sales and improvement in the OPM. the FDA had announced that the H1N1 vaccine manufactured by GSK would join the list of the four vaccines approved. The company's 1QFY2010 results show the net sales at Rs880.

Typically. If the pharmaceutical companies want to improve their Return-OnInvestment (ROI). the pharmaceutical marketing strategies (as well as advertising strategies) are different from other businesses because pharmaceuticals or drugs can negatively affect both. New Pharmaceutical Marketing Strategies While most of the pharmaceutical companies successfully employ a host of marketing strategies to target various types of customers. the pharmaceutical industry faces some very serious strategic issues. However. a few countries (till date two countries. they have to adopt new communication technologies (digital media) along with their conventional sales force of medical representatives. . marketing plan for advertising or promoting products is crucial to pharmaceutical industry too. However. However. the expense of this sales force of any pharmaceutical company comprises anything ranging from 15-20% of annual product revenues. with changing times and new developments. Any pharmaceutical marketing strategy targets the health care professionals or the Doctors who in turn prescribe the drugs to the patients (end consumers) liable to pay for the products.strategies included in the marketing plan of any pharmaceutical company is not 'direct to consumer'.New Zealand and United States) allow Direct-to-consumer advertising (DTC advertising) for pharmaceutical products.MARKETING AND DISTRIBUTION . . the current business and customer trends are continuously creating new challenges as well as opportunities for increasing profitability.

pharmaceuticals_drug-manufacturers.com/pharmaceuticals-industry Business.REFERENCES     www.com/pharmaceuticals www.com/uk/orc/bin www.mapsofindia.com/india/pharmac .oup.naukrihub.