Sr

NO.

Name Roll No.

1 Kamlesh Bhagat B-02

2 Hetal Bhatt B-03

3 Mou Chakraborty B-05

4 Shakti Jain B-12

5 Mayuri Vadher B-31

The Indian pharmaceutical industry, with US$4 billion in domestic sales and over US$3 billion in exports

The Pharmaceutical Industry in India is the world's third-largest in terms of volume.

India is among the top 20 pharmaceutical exporting countries and the exports have grown very significantly at a CAGR of around 19% in the 11th plan period. Indian drugs are exported to around 200 countries in the world with highly regulated markets of USA,UK etc. Domestic market was worth US$12.26 billion.

India is now among the top five pharmaceutical emerging markets of the world.

The Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between 2012-16.

India's bio pharmaceutical industry clocked a 17 percent growth with revenues of Rs. 137 billion ($3 billion) in the 2009–10 financial year over the previous fiscal.

There were 4,655 pharmaceutical manufacturing plants in all of India, employing over 345 thousand workers.

There are 24,000 licensed pharmaceutical companies. Of the 465 bulk drugs used in India, approximately 425 are manufactured here. India has more drug manufacturing facilities that have been approved by the U.S. Food and Drug Administration than any country other than the US. Indian generics companies supply 84% of the AIDS drugs that Doctors without Borders uses to treat 60,000 patients in more than 30 countries.

It is very much evident from above fig that chronic therapy area (Gastro Cardiac, Respiratory, Neuro Psychiatry and Ant diabetics) is dominating the market in long run.

The number of purely Indian Pharma companies is fairly low.

In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of formulations and bulk drugs.

Most of the players in the market are small-to-medium enterprises control 70% of the Indian market. Due to the 1970 Patent Act, multinationals represent only 35% of the market, down from 70% thirty years ago.

The Indian pharmaceutical industry is poised to grow into an industry of $20 billion in 2015 from the current turnover of $12 billion.

Total turnover of industry between 2008-2009 is US$21.04 billion.

The outlook for small and medium enterprises (SME) is not as bright.

Business is left is shifting to companies with facilities in the four tax-free states – Himachal Pradesh, Jammu & Kashmir, Uttaranchal and Jharkhand.

SMEs wrestled with the tax structure

The first and most significant change was the 1 January 2005 enactment of an amendment to India’s patent law that reinstated product patents for the first time since 1972.

Under this new law, India will be forced to recognisenot only new patents but also any patents filed after 1 January 1995.

In the domestic market, this new patent legislation has resulted in fairly clear segmentation. The multinationals narrowed their focus onto high-end patients who make up only 12% of the market

Indian Pharmaceutical Companies Imports and ExportsImport- as per Directorate of commercial intelligence and statistcs.(D.G.C.I.S) Kolkata, The value of imports of Medical and Pharmaceuticals Products for the latest period is :

In the year 2011 the import has declined. The country is almost self sufficient in production of most of formulations/ pharmaceuticals products. Manufacturers of drug and pharmaceuticals are free to produce and drugs approved by Drug control authority.

Export- as per DGCIS, Kolkata of” Dug and Pharmaceuticals and Fine Chemical” :

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Starting to adapt product development processes. Firms have made their ways into the global market Local firms have slowly been investing more money

into their R&D programs

SWOT Analysis Of Indian Pharmaceutical Industry(as per 12th plan)

Strengths Weaknesses Opportunities Threats

•Low cost of skilled manpower•Access to large pool of highly trained scientists•Strong marketing and distribution network•Proven track record in design of high technology manufacturing devices•Low cost of innovation, manufacturing and operations•Strong Low cost manufacturing sector.• Significant breadth

and depth of productexpertise

•Stringent pricing regulations•Poor transport and medical infrastructure•Lack of data protection•Very competitive environment•Poor health insurance coverage•Production of low quality drugs tarnishes image of industry abroad•Low investment in innovative R&D

•Increase in per capita income•Global demand for generics rising•Increasing population with more sedentary lifestyle•Increasing health insurance sector•Significant investment from MNCs•Medical tourism•Cheap, diverse clinical trials•Global outsourcing hub due to low cost of skilled labor

•Other low cost countries affecting demand•Government regulations changing•Expanding of Drugs Price Control Order•Lack of investment in infrastructure•Wage inflation•R&D restricted by lack of animal testing and outdated patient office•Counterfeiting threat•spent only 5–10% of revenues on R&D. lagging behind Western pharmaceuticals.• Pharma in India also lack the academic collaboration that is crucial to drug development in the West and so far.

It established the Department of Biotechnology in 1986 under the Ministry of Science and Technology.

A number of dispensations offered by both the central government and various states to encourage the growth of the industry

India’s science minister launched a program that provides tax incentives and grants for biotech start-ups.

They are offering such goodies as exemption from VAT and other fees, financial assistance with patents.

100% foreign direct investment without compulsory licensing from the government.

The minister of science and technology and ocean development, visited five cities in the US to encourage investment in India

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Source: Ministry of Chemicals & Fertilizers, Department of Pharmaceuticals

A National Pharmaceuticals Policy is one that aims at ensuring that people get good quality drugs at the lowest possible price, and

That doctors prescribe the minimum of required drugs in order to treat the patient's illness

Due to pressure from the developed countries, across the world uniformity in patent laws is being implemented under WTO (World Trade Organization - earlier GATT i.e. General Agreement on Tariffs & Trade). Presently, different countries have different patent types and life period. WTO has decided upon a product patent life of 20 years in all countries.

Most companies in the biotech sector are extremely small.

Bio-tech there still plays the role of pharma’slittle sister.

India accounted for 2% of the $41 billion global biotech market and in 2003 was ranked 3rd in the Asia-Pacific region.

The Indian biotech market is dominated by bio pharmaceuticals; 75% of 2004–5 revenues came from bio-pharmaceuticals, which saw 30% growth last year.

Company Net Sales (30th July 2013 $Bn) Employees

Cipla 1.39 20,000

Dr Reddy’s Laboratories 1.14 16,300

Ranbaxy Labs 1.07 14,600

Aurobindo Pharma 0.92 8,635

Lupin Ltd 0.91 11,355

Sun Pharma 0.68 11,200

Novartis India 0.14 4,500 (115,000 Worldwide)

Sources: moneycontrol.com, drreddys.com, cipla.com, ranbaxy.com, lupinworld.com, novartis.in, aurobindo.com, sunpharma .com

Local and International key Players

Company Net Sales (2012 $ Bn) Employees

Johnson & Johnson (USA) 67.2 117,000

Pfizer (USA) 58.9 91,000

Novartis (Switzerland) 56.7 115,000

Roche (Switzerland) 47.8 80,000

Merck (USA) 47.3 86,000

Sanofi (French) 46.4 113,000

GlaxoSmithKline (UK) 39.9 97,000

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