Indian Pharmaceutical Industry

Indian Pharmaceutical Industry
The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally selfreliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market.
No.
COMPANY NAME
SALES IN RS.
1 2 3 4 5 6 7 8 9 10
Ranbaxy Dr Reddy's Laboratories Cipla Sun Pharma Industries Lupin Labs Aurobindo Pharma GlaxoSmithKline Pharma (GSK) Cadila Healthcare Aventis Pharma Ipca Laboratories
4,198.96 cr. Rs 4,162.25 cr. Rs 3,763.72 cr. Rs 2,463.59 cr. Rs 2,215.52 cr. Rs 2,080.19 cr. Rs 1,773.41 cr. Rs 1,613.00 cr. Rs 983.80 cr. Rs 980.44 cr.
The pharmaceutical industry is a very unique and spectacular industry, with an impressive evolution along the 20th and the beginning of the 21st centuries, as well as facing a challenging future. The situation in the industry at the global level has spectacularly changed in the past two decades, leading to new strategies and new portfolios, especially for the major pharmaceutical companies worldwide. The current pharmaceutical industry characterizes as a mature and Tab.
industry that is constantly affected by mergers and acquisitions, as well as by new scientific discoveries. Therefore, it becomes very essential to understand the global scenario and the current trends in the pharmaceutical industry for the companies to operate in a single market and serve the mankind across the globe.
Major factors of future growth

The pharmaceutical industry showed high sales growth rates in the recent past, and a number of factors suggest that this trend will continue in the future. First, due to numerous advancements in science and technology, including those in the health care industry, life expectancy in the developed countries has been steadily growing. As the result, growing proportion of elderly people promises further growth of demand for healthcare products. Moreover, according to various studies, a significant portion of elderly population in the United States and other countries does not receive proper treatment. For example, only about one third of the U.S. population who requires medical therapy for high cholesterol is actually receiving adequate treatment. As it is expected, the Medicare Prescription Drug Improvement and Modernization Act starting from the beginning of 2006 will increase access of senior citizens to the prescription drug coverage, thus increasing pharmaceutical sales. Although developing countries at the moment have a small portion of world pharmaceutical sales, these countries also have a significant potential for the pharmaceutical industry in the future. Fast growing economies in Asia, South America and Central & Eastern Europe suggest an increasing solvency of population and make these markets more and more attractive for Big Pharma companies. Further reforms of legislation systems in the countries of these regions, especially regarding patent protection issues, will inevitably result in growing pharmaceutical sales.
Strong emphasis on R&D

One of the distinctive characteristics of the Big Pharma companies is a very high level of investments in research and development. On average, it takes about 10-15 years, and millions of dollars to develop a new medicine. According to industry statistics, only about one in ten thousand chemical compounds discovered by pharmaceutical industry researchers proves to be
both medically effective and safe enough to become an approved medicine, and about half of all new medicines fail in the late stages of clinical trials. Not surprisingly, according to Research and Development in Industry: 2001 report of the National Science Foundation, in 2001 the pharmaceutical industry had one of the highest R&D expenditures as percentage of net sales. More detailed information on this issue is provided in the second part of this paper.
Skin disorder
Mineral
Supplement
Dietary
Vitamin Yearly Diahorrea Half yearly Bimonthly Monthly Vomiting Biweekly Weekly Contraception Daily
Acidity
Cold, Flu
Pain
Fever
10
Do you use OTC drugs or medication for mentioned below indication If Yes, please indicates the frequency of usage? Ho: There is no significant difference between frequency of suffering from pain and the age of a person Ha: There is a significant difference between frequency of suffering from pain and the age of a person Crosstab for fever
Frequency
Daily Weekly 1 0 1 2 4 Biweekly 3 4 2 5 14 Monthly 2 6 7 3 18 Bimonthly 3 5 4 2 14 Half yearly 3 3 1 1 8 Yearly 1 0 0 0 1
Total
13 18 15 14 60
Age Below 25 yr 25-35 35-45 Above 45 yr Total
0 0 0 1 1
Tab.8.15: Crosstab to identify the frequency of suffering with pain with respect to age of the person Chi-Square Tests
Have you seen advertisement of OTC drug recently, if Yes, please indicate if you have use or recommended it to others? Accordingly
Series 1
3.5 3 2.5 2 1.5 1 0.5 0 Daily Weekly Biweekly Monthly Bimonthly Half yearly Yearly Series 1

Indian Pharmaceutical Industry

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Indian Pharmaceutical Industry

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Indian Pharmaceutical Industry

Major factors of future growth

Strong emphasis on R&D

Age Below 25 yr 25-35 35-45 Above 45 yr Total

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