Indian Pharmaceutical Industry

Indian Pharmaceutical Industry

By Pathan Naveed call 9890146190, email:pathan_naveed@yahoo.com

India -3^rd Largest Producer of Pharmaceuticals around the globe is already a US$ 8.2 Billion pharmaceutical market. The Indian pharmaceutical industry is further expected to grow by 10% in the year 2010.

India’s Pharmaceutical sector has seen a unprecedented change, much of is due to the introduction of Product Patents introduced on January1,2005, earlier it was a process patent which had helped Indian pharmaceutical industry to grab huge success as a worldwide exporter of high quality generic drugs. Post gate era has opened new avenues for the Pharmaceutical multinationals to return many of which had left India during 1970s. Now they are looking not only for its traditional Contract Manufacturing but also as a highly attractive place for research and development [R&D], especially in the conduct of clinical Trials and other services, presents an opportunity worth 48$billion .Developing and innovative new drug from discovery to worldwide marketing involves investments of around $1billion, and the global industry’s profitability is under attack as costs continue to increase and price come under pressure due to different factors like recession, India offers a excellent hub for manufacturing as costs are almost 50% lowest then in Western Nations, R&D costs are about one-eighth and clinical trial expenses one-tenth ,India also offers a large , well-educated, English speaking workforce , with 700,000 scientists and engineers graduating every year ,including 122,000 chemists and chemical engineers with 1,500PhDs.

The main opportunities for Indian Pharmaceutical industry are in the areas of

Generics.

Biotechnology.

Outsourcing[Contract manufacturing, India's Other Advantages

• Low-cost skill base

• Current Good Manufacturing Practice (cGMP) and U.S. FDA compliance levels

• High visibility in generics

• High-quality, compliant manufacturing

• Strong financial position with ability to scale up

• Manufacturing capacity

• Access to new technologies

• Cost efficiency and track record

• Industry position

• Recognition of product patents]

Both Indian Multinationals and Foreign Multinationals are targeting one billion inhabitants who lead more western-style lives, and are demanding innovative drugs to treat the chronic illnesses that these changing lifestyles may produce. These domestic players most of them are working as a Indian MNC’s are utilizing both organic growth and Mergers and acquisitions [M&A}, Partnerships will be key for Indian Companies Development to tape the untapped market. The most prime aspect of the growth depends on government as to increase the access to medicine, DPCO is not the answer for the essential drugs as it is already the lowest in the world; The solution lies in pro active measure like Public Private Partnerships and encouragement of R&D , easy access to Conduct of Clinical Research, Industry –academia Collaboration and an grant system.

India currently represents U.S $6 billion of the $550 billion global Pharmaceutical Industry and its share will increase at 10 percent a year compare to 7% global market overall. Indian sector represents just 8% of total industry volume and its drug exports are growing 30% annually. The organized sector consists of 300 companies which account for 70% Products of the market with the top ten companies represents 30%. However the total sector is nearly 20,000 pharmaceutical units which are extremely small and 75%demand for medicines is met by these local manufactures.

Over the counter medicines [OTCs] are worth about $940 million and is growing 20%/annum or double the rate of Prescription Medicine. The government is keen to spread the OTC outlets other than Pharmacies and the now has launched an Initiative called “Janaushadi” run by central government, the government has also been advised to sell medicine in Post offices by Organization of Pharmaceutical producers of India.

By

Pathan Naveed[B.pahrmacy, B.J.m.S]

Corporate consultant

The Health International.