Drugs and Pharmaceuticals

Drugs and pharmaceutical industry plays a vital role in the economic development of a nation.

It is one of the largest and most advanced sectors in the world

On the global platform, India holds thirteenth position in terms of value of production in pharmaceuticals. 

The Indian drugs and pharmaceutical industry, over the years, has shown tremendous progress in terms of infrastructure development, technology base creation as well as product usage.

INTRODUCTION

The industry offers several opportunities for investments and trade owing to the following features:-

Low cost of production of quality bulk drugs and formulations.

Strong scientific, innovative and technical manpower.Excellent and world-class national laboratories

specializing in process development.Increasing balance of trade in pharma sector.Efficient and cost effective source for procuring

generic drugs, especially the drugs going off patent in the next few years.

The Drugs and Cosmetics Act, 1940 The Pharmacy Act, 1948 The Drugs and Magic Remedies Act, 1954 The Narcotic Drugs and Psychotropic Substances Act, 1985 The Medicinal and Toilet Preparations Act, 1956

Laws Pertaining to Manufacture and Sale of Drugs in India

It was in 1930 when the first pharmaceutical company in India came into existence in Kolkata.

It is called the "Bengal Chemicals and Pharmaceutical Works".

This Indian company is still there and today it is the part of five drug manufacturing companies that are owned by the government

History of Indian Pharma Industry

India provide product patent protection in pharmaceuticals till 1970

This did not have any positive effect because, the MNC’s who held the patents were not keen on manufacturing and R&D activities, they preferred imports to local production in India.

India Patents Act 1970:Evolution and Impact.

On the one hand because of lack of competition , drug prices in India were very high

On the other hand India was dependent on imports for many of the essential bulk drugs. The imports dependence constricted consumption in a country deficient in foreign exchange and inhibited the growth of the industry

India: The Drugs And Cosmetics (Amendment) Bill, 2013.In the last few years, the Indian

pharmaceutical sector has seen an immense growth and recognized itself as one of the largest in terms of volume.

Further, the approval of 100 % FDI in the pharmaceutical sector India as one of the emerging markets for direct investment in pharmaceutical sector

Various large multinational pharmaceutical companies have shown interest to enter into acquisitions and tie-ups with Indian pharmaceutical companies

The government is actively considering a proposal to have a separate policy for allowing 100% foreign direct investment  in the manufacture of medical devices, through the automatic route.

The aim is to encourage greater investment from abroad in the sector

FDI in Drugs and Pharmaceuticals.

Drugs and pharmaceuticals

Higher GDP growth leading to increased disposable income in the hands of general public and their positive attitude towards spending on healthcare.

Highly skilled set of labour force and proven track record in design of high technology manufacturing devices.

Low cost of labor, innovation, manufacturing and operations.

Property rights supported by well-developed judicial system.

Strengths

Stringent pricing regulations affecting the profitability of pharma companies.

Poor all-round infrastructure is a major challenge.

Presence of more unorganized players versus the organized ones, resulting in an increasingly competitive environment, characterized by stiff price competition.

Poor health insurance coverage.

Weaknesses

Opening of the health insurance sector and increase in per capita income - the growth drivers for the pharmaceutical industry

Health insurance is growing.

The government is increasing spend on healthcare

Indian population is spending an increased amount of money on healthcare, Changing disease profile and favorable demographics

Opportunity

Other low-cost countries such as China , Thailand and Israel affecting outsourcing demand for Indian pharmaceutical products

Skilled Labour shortage

Wage inflation

Competition from other emerging economies

Threats

Pharma companies in India

Sales revenue 2013-2014 (in crores)

1) Dr. Reddys Laboratories Rs 8,434

2) Cipla Rs 8,202.42

3) Lupin Rs 7,122.51

4) Aurobindo pharma Rs 5,425.1

5) Cadila health care Rs 3,675.7

6) Jubilant life sciences Rs 3,146.3

7) Ipca Laboratories Rs 2,778.42

8) Torrent pharma Rs 2,766.23

9) Glaxo smithkline Rs 2,546.15

10) Workhardt Rs 2,471.18

Top 10 pharmaceuticals companies in INDIA

Submitted By

THARIQ ASHARAF

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