P h a r m a c e u t i c a l

Pharmaceutical Industry

Indian pharmaceutical industry

• The Indian pharmaceutical industry is the world's second-largest by volume and is likely to lead the manufacturing sector of India.

• The first pharmaceutical company are Bengal Chemicals and Pharmaceutical Works, which still exists today as one of 5 government-owned drug manufacturers, appeared in Calcutta in 1930.

• The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970

WORLD SCENARIO

• The global pharmaceutical market is estimated to represent a $48 billion opportunity for India by 2011, in terms of:

• manufacturing outsourcing-supply of active pharmaceutical ingredients (APIs) and intermediates

development outsourcing-conducting preclinical and clinical trials

customized chemistry services-contract research services for compounds pre-launch.

INDIAN SCENARIO

India's pharmaceutical market grew at 15.7% during December 2011.globally, India ranks third in terms of manufacturing pharma products volume. The indian pharmaceutical industry is expected the grow at a rate of 9.9% till 2010 after that 9.5% till 2015

Emerging Trends & Opportunities

• Geographic Convergence– Established and growing destination for Generic product

development and manufacturing– Leading Indian companies seeking overseas markets and

global scale

• Generic – Innovator Convergence– Leading Indian companies trying to climb the value chain

into innovative research– India developing into a Drug Discovery services outsourcing

destination

Patents and generics

• A chemical patent or pharmaceutical patent is a patent for an invention in the chemical or pharmaceuticals industry

• Depending on a number of considerations, a company may apply for and be granted a patent for the drug

CSR It is particularly difficult for pharmaceutical companies to allocate its strategic resources necessary to CSR strategies, due to so much of its funds are allocated for R&D and promotional activities, which are relatively risky in nature. The demand for its products is based on consumer motivation, which can vary greatly amongst different countries depending on the responsibilities of consumers, government and economies, and insurance companies or a mix of the three..

28

Challenges & RecommendationsChallenges

Low Government funding & lack of efficient execution of schemes & initiatives

Shortfall in Health care infrastructure and Workforce

Inadequate accessibility to affordable quality services

Financial constraints with respect to infrastructural needs

Recommendations

Step-up in Government funding and initiatives via a special task force

Implementation of REITs and increased use of Private-Private Partnership Models

Addressing geographic accessibility through PPP and harnessing local resources

Creating a Global Source of Skill

Efficient dissemination of healthcare related information

Establishment of Industry Body with adequate representation from all stakeholders

Key successful factors

• Supplier/Partner mapping/selection– Capability / Keenness / Reliability / Competitiveness– Key team members – development, regulatory & commercial

• Optimal Number of Partners– Strategic – markets/product lines– Opportunistic – product specific

• Relationship management– Relationship oriented culture

• Contract negotiation– Clear distribution of responsibilities and timelines– Demand performance - penalties for not meeting deliverables

• Project management– Regular visits and video/teleconferences a must

RANBAXY SWOT ANALYSIS

STRENGTHS:

➢ Low cost of production. ➢ Large pool of installed capacities ➢ Efficient technologies for large

number of Generics.

• Large pool of skilled technical manpower.• ➢ Increasing liberalization of government

policies

• WEAKNESS:• ➢ Fragmentation of installed capacities.• ➢ Low technology level of Capital Goods of

this section.• ➢ Non-availability of major intermediaries for

bulk drugs.• ➢ Lack of experience to exploit efficiently the

new patent regime.

• OPPORTUNITY:• ➢ Aging of the world population.• ➢ Growing incomes.• Growing attention for health.• ➢ New diagnoses and new social diseases.• ➢ Spreading prophylactic approaches.• ➢ Saturation point of market is far away

• THREATS:• ➢ Containment of rising health-care cost.• High Cost of discovering new products and

fewer discoveries.• ➢ Stricter registration procedures.• ➢ High entry cost in newer markets.• ➢ High cost of sales and marketing.