Presented in partial fulfillment of the requirements for Under Graduation Programme in Management

Rx INDIAN PHARMACEUTICAL INDUSTRY

Ranked 4th in Volume terms

11th in value terms

A large number of Indian pharmaceutical companies are looking for tie-ups with foreign firms inlicense drugs Around 70% of the countries demand bulk drugs Indian pharmaceutical was valued at $7,743m in 2008 Grew at a CAGR of 13.2%during 2009 Expected to reach a value of $15,490m in 2014 Imports of bulk drugs from Global players for re-processing The implementation of Good manufacturing practices

PRESENT ESTIMATION:-$ 4.5 BILLION DURATION:- 58 YEARS NUMBER OF LABS:- 20,000 SCALE:- EURO 5.3 BILLION NUMBER OF COMPANIES:250 CONTROL ON MARKET:70% MARKET HOLDING:- 7% OF THE MARKET SHARE UNITS:- 250 LARGE & 8000 SMALL EXPECTATION:-DRUGS WORTH $100 BILLION WILL GO OFF PATENT IN NEXT FIVE YEARS

RESEARCH PRODUCT DEVELOPMENT PRE-CLINICAL TESTING 1ST PHASE(ANIMAL TESTING) 2ND PHASE(ON SOME PATIENTS TO LOOK FOR EFFICIENCY AND SIDE EFFECTS 3RD PHASE(ON LARGE NUMBER OF VOLUNTEERS TO AVOID ADVERSE REACTION IN LONG TERM) FDA REVIEW/APPROVAL 4TH PHASE (POST MARKETING TRIALS)

MERGER&AQUISITIONS
ACQUIRER DAIICHI SANKYO TARGET RANBAXY DEAL SIZE(BN $ 4.6

SUN DR REDDYS LAB

TARO BETA PHARM

0.454 0.472

PFIZER
MERCK ROCHE

WYETH
SCHERINGPLOUGH GENETECH

68.1
48 47

COMPETENT WORKFORCE:- INDIA HAS EDUCATED WORKFORCE.PROFESSIONAL SERVICES ARE EASILY AVAILABLE COST EFFECTIVE CHEMICAL SYNTHESIS:- PROVIDING WIDE VARIETY OF BULK DRUGS LEGAL & FINANCIAL FRAMEWORK:- 58 YEAR OLD SOLID LEGAL FRAME WORK AND FINANCIAL MARKETS INFORMATION & TECHNOLOGY:- GOOD NETWORK OF WORLD-CLASS EDUCATION AND INSTITUTION GLOBALIZATION:-COMMITTED TO FREE MARKET.ABOVE 70 MILLION MIDDLE CLASS MARKET CONSOLIDSATION:- INTERNATIONAL COMPANIES FINDING OPPURTUNITIES IN INDIA . GROWTH SCENARIO:-INDIAS US$ 3.1 BILLION PHARMACEUTICAL INDUSTRY IS GROWING AT THE RATE 14% PER YEAR. EXPECTATION:- THE DOMESTIC INDUSTRY IS EXPECTED TO EXCEED Rs 260 BILLION

CTO

RESEARCH & DEVELOPMENT FDA MANUFACTURING CRAMS

TELEVISION ADVERTISING,I NTERNET ,PUBLICATION MATERIAL

MEDICAL REPRESENTATIVES,P ROMOTIONAL LITERATURE,CONFE RENCES

MARKETING

DOCTORS MEDICAL STORE PATIENTS

MEDICAL STORE

THERAPEUTIC SEGMENTS
ANTI-INFECTIVES CARDIAC PAIN GYNAEC DERMA OTHERS

INDUSTRY GROWTH
60 50 40 30 20 10

GASTRO
RESPIRATORY VITAMINS CNS ANTI DIABETIC

REGULATIONS
CUSTOM DUTY OF AME TO BE REDUCED TO 5% AND ON LIFE SAVING DRUGS TO NIL EXCISE DUTY HAS BEEN FULLY EXEMTED ON ANTI-AIDS DRUGS EXTENSION OF 150% WEIGHTED DEDUCTION ON IN-HOUSE RESEARCH NPPA CONTROLS THE PRICES THROUGH DPCO FDA REGULATES THE MARKET IN US

ISSUES &CONCERNS
POOR RESEARCH AND DEVELOPMENT SPEND LACK OF STRONG LINKAGE BETWEEN INDUSTRY AND ACDEMIA NPPA PLANNING TO EXTEND DPCO TO SMALL MANUFACTURERS SPURIOUS DRUGS TARNISH IMAGE OF THE INDUSTRY FLUCTUATING OIL PRICES AND EXCHANGE RATE COSTLY MEDICAL EQUIPMENTS LOW MEDICAL EXPENDITURE AND HEALTHCARE SPENDING IN THE COUNTRY LACK OF RESEARCH ON TRADITIONAL MEDICINE

PHARMACEUTICAL REGULATORY BOARDS

MAJOR PLAYERS
R COMPANY A N K
REVENUE 2004(Rs crore) REVENUE 2004(USD million)

NPPA-Revises price, checks availability of medicines, drugs(prices control) 1995 CDSCO- Lays down standard and regulatory methods, control quality, approval of new drugs, carrying out test of specific drugs DCP- Responsible for planning, regulating chemical & petrochemical industry,redressal of grievances, formulate policies

1
2 3 4 5 6 7 8 9 1 0

Ranbaxy laboratories
Dr.Reddys laboratories

4,461

1,026

1,933

444

Cipla
Nicholas Piramal Aurobindo Pharma
Glaxo Smith Kline Lupin Laboratories Sun Pharmaceutical Industries
Cadila Healthcare Wockhardt

1,842
1,387 1,260
1,228 1,180 1,110
1,091 980

423
319 290
282 271 255
251 225

Usd 1=Rs 43.5

LOGISTIC ISSUES IN PHARMACEUTICAL INDUSTRY

INDIAN PHARMACEUTICAL SUPPLY CHAIN

SUPPLIERS PRODUCTI ON

20
18 16 14 12
CUST OMER

10
8 6 4 2

Growth US$ bn
RETAI LER

SUPPLY CHAIN IN PHARMAC EUTICAL INDUSTRY

CARRYIN G &REWARDI NG AGENT

0
2001 2001 2002 2003 2004 2005 2006

STOCKIST