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2 The pharma industry develops, produces & markets drugs licensed for use as
medication.
2 Most of today's major pharmaceutical companies were founded in the late
19th and early 20th centuries.
2 Key discoveries of the 1920s and 1930s, such as insulin and penicillin, became
mass--manufactured and distributed.
mass
2 Numerous new drugs were developed during the 1950s and mass- mass-produced
and marketed through the 1960s which include blood pressure drugs &
various other heart medications.
2 In the 1960s after the 
 tragedy came to light, in which the use of a
new tranquilizer in pregnant women caused severe birth defects. In 1964, the
World Medical Association issued its  


 
 


 ,, which set
standards for clinical research and demanded that subjects give their informed
consent before enrolling in an experiment.
2 The first Indian pharmaceutical company, Bengal Chemicals and
Pharmaceutical Works, which still exists today as one of 5 government-
government-owned
drug manufacturers, appeared in Calcutta in 1930.
2 For the next 60 years, most of the drugs in India were imported by
multinationals either in fully-
fully-formulated or bulk form & only began to
manufacture drugs after 1960¶s.
 „ CTOR OUTLOOK

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 CLA„„IFICATION
The Indian pharmaceutical industry can be classified into
V organized sectors
V unorganized sectors
1. Generic 2. thical

On the basis of management control, the organized sector can be further classified
into
V MNCs
V Indian companies

On the basis of the product manufactured, the pharmaceutical industry can be

classified into
V Bulk drugs: They are the key ingredients that form the basic raw material
for the manufacture of formulations.
V Formulation: Particular mixture of a bulk drug or a combination of different
bulk drugs.

Formulations constitute nearly 81% and bulk drugs account for the remaining
19%. Indian pharmaceutical industry has about 2400 licensed manufacturers
and more than 100,000 drugs.
 INDIAN PHARMAC UTICAL MARK T
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 TOP 10 PHARMAC UTICAL COMPANI „

2 Ranbaxy

2 Cipla

2 Dr. Reddy's Laboratories

2 Glaxo„mithKline

2 Piramal Healthcare
2 mydus Cadila

2 „un Pharma Industries

2 Lupin Laboratories

2 Alkem

2 „anofi - Aventis
 P „T IMPL M NTATION
POLITICAL IMPACT

2 A „ m unit has been set up in Himachal Pradesh, Karnal, exclusively for

the pharma industries.
2 „pecial conomic mones („ m are the special provisions given by the
government to improve trading, by reducing taxation, better privileges for
the employees, easy availability of raw materials & so on.
2 By doing so various top notch pharma companies have started their plants
under this provision.
2 This particular move by the Indian govt. is helping the economy grow big
time which, in turn has helped the pharma sector to grow & establish
widely.
2 This move has succeeded in encouraging more pharma companies to open
up their plants under „ m.
2 This „ m unit provided employment opportunities to the local people.
2 It also accommodates for all the basic requirements of the people like
school, medical facilities & so on, thus .
 CONOMIC IMPACT
Role of Pharmaceutical Industry in India GDP-
GDP- Facts

2 The Pharmaceutical Industry in India is one of the largest in the world.

2 It ranks 4th in the world, pertaining to the volume of sales.
2 The estimated worth of the Indian Pharmaceutical Industry is U„
6 billion.
2 The growth rate of the industry is 13% per year.
2 Almost most 70% of the domestic demand for bulk drugs is catered by the
Indian Pharma Industry with top players controlling about 7% of the market
share.
2 The Pharma Industry in India produces around 20% to 24% of the global
generic drugs
2 The Indian Pharmaceutical Industry is one of the biggest producers of the
active pharmaceutical ingredients (API in the international arena.
2 The Indian Pharma sector leads the science-
science-based industries in the country.
2 The pharmaceutical sector has the capacity and technology to
manufacture complex drug.
2 Around 40% of the total pharmaceutical produce is exported
2 55% of the total exports constitute of formulations and the other 45%
comprises of bulk drugs.
2 xport has become an important driving force for growth in this industry
with more than 50 % revenue coming from the overseas markets.
2 The Indian Pharma Industry includes small scaled, medium scaled, large
scaled players, which totals nearly 300 different companies.
2 There are several other small units operating in the domestic sector.
 „OCIAL IMPACT

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::
`.. at what expense?
Industry „trengths
VCapital Investment in Technology: Owing to the availability of advanced
technology at low costs, the companies can produce drugs at lower costs.

VCost ffective: The filing cost of ANDAs and DMFs is comparatively low for
the Indian companies.

VManpower: There is a large pool of technical experts available at modest

salaries.

VContract Research & Contract Manufacturing: There is a good scope for

contract research and contract manufacturing.

VInfrastructure: There is a well-developed infrastructure for the

pharmaceutical industry.

VGeneric Drugs: In the last few years, the generic drug-manufacturing

segment has received huge investments, in the process making it more
competitive and efficient.

VHigh-quality formulations and drugs

Weakness
Low Indian share in world pharmaceutical market (about 2%
VLack of strategic planning
VLow R&D investments
VAbsence of association between institutes and industry
VProduction of duplicate drugs

Opportunities
Incredible export potential
VIncreasing health consciousness
VNew innovative therapeutic products
VGlobalization
VDrug delivery system management
VProduction of generic drugs
VContract manufacturing

Threats
„mall number of discoveries
Competition from MNCs
Outdated „ales and marketing methods
Non-tariff barriers imposed by developed countries
 I„„U

VDaiichi „ankyo and Ranbaxy 'formed a team' after the FDA accused
Ranbaxy of false data and test results

VBanned 30 of Ranbaxy's drugs made in its Poanta „ahib and Dewas plants
and stopped fresh marketing approvals of drugs made in both the facilities.

VThe company said some drugs were stored at room temperature when they
were actually refrigerated, and it claimed to have tested the shelf life of
certain products, those test were never made.

VThe company has for the first time in its history recorded losses in three
successive quarters.

VIn addition, the company has been saddled by mark to market forex losses.
Its net loss in the quarter ended March 2009 was in excess of Rs 750 crore.
The company¶s share price has crashed from Rs 613 in June 2008 to Rs 220
at close on Friday, May 22 on the B„ .