SWOT ANALYSIS OF PHARMACEUTICAL INDUSTRY

INTRODUCTION ‡ Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries ‡ The 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. .

Indian Pharmaceutical Industry ‡ IPI is ranked 4th in volume term and 11th in value terms globally. ‡ The Pharmaceutical industry in india is fragmented with over 3000 small\ medium sized generic pharmaceutical manufacture. capsules . orals and vaccines is met by IPI. ‡ Around 70% of the country¶s demand for bulk drugs. . tablets . chemical . pharmaceutical formulation.

STRUCTURE OF INDUSTRY ‡ Fragmented with 24000 players ± 300 organized ‡ Leading 250 ± 70% of the market ‡ Market leaders hold 7% ‡ Manufactures : Bulk drugs ± APIs Formulations (75:25) ‡ Adopts high technology & produces high value products .

Key product ‡ ‡ ‡ ‡ ‡ Medicines Medical equipment Surgical goods Operation accessories Injections .

Key Players In Pharmaceutical Industry RANK 1 2 3 4 5 6 7 8 9 10 COMPANY NAME RANBAXY CIPLA DR.REDDY ¶S LAB NICHOLAS PIRAMAL WOCKARDT LTD LUPIN LABS CADILA HEALTH CARE LTD SUN PHARMA ALEMBIC LTD MOREPAN .

FRAMEWORK OF ANALYSIS: SWOT ANALYSIS .

low.Strength ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Cost effective technology Strong and well-developed manufacturing base Clinical research and trials Knowledge based.cost manpower in science & technology Well Established R&D infrastructure High-quality formulations and drugs High standards of purity World-class process development labs Excellent clinical trial centers Chemical and process development competencies .

Weakness ‡ Low Indian share in world pharmaceutical market (about 2%) ‡ Lack of strategic planning ‡ Fragmented capacities ‡ Absence of association between institutes and industry ± Biotechnology and Pharmaceuticals ‡ Low healthcare expenditure ‡ Production of duplicate drugs .

Opportunity ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ 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 .

Threats ‡ Small number of discoveries ‡ Competition from MNCs ‡ Trade related aspects of Intellectual property rights (TRIPS) ‡ Outdated Sales and marketing methods .

MERGERS AND ACQUISITIONS IN THE INDIAN PHARMACEUTICAL INDUSTRY .

1 UK.Reddy¶s Labs Reason Front end line in Germany Front end line in Germany Deal Value Target Country 570 Germany 11 Germany 33.Reddy¶s Labs Increasing presence in Contract Mfg 58.5 Japan Feb-06 May-04 Ranbaxy Espama Gmbh Wockhardt Daichii Sankyo Low cost manufacturin g and supply chain management Nov-05 Roche¶s API Facility Nov-05 Avecia Nicholas Piramal Increasing presence in Contract Mfg 17.Canada Dr.97 Mexico Oct-05 .Announce date Target Betapharm Acquirer Dr.

the Indian Pharma Industry is expected to be a US$ 20 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.CONCLUSION ‡ Pharma industry being a growth industry ‡ Unaffected by the business cycle ‡ As per the present growth rate. .

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