Click to edit Master subtitle style Presented by: Stuti shah (2004) Sanat Thakur (2005) Dhruti ramanuj

(2008) Meen dave (2009) Khushbu Vaghela (2010) Khushbu Soni (2025)
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A Global Country Report on Austria (Pharmaceutical sector)

Presented to: Gujarat Technological University

Present trade relation and business volume between India and Austria

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Indias Export from Austria

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Indias imports from Austria

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Introduction of Pharmaceutical Sector

Austria consist of approximately 120

pharmaceutical companies

The Austrian Association of Pharmaceutical

Companies plays an important role

There are number of small and medium sized

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50 % Small size enterprises with 9-10

employees

40% Medium size enterprises with 10-250

employees
10% of large size companies (responsible

for 84% of the total industry turnover ) with more than 250 employees.

Baxter is the biggest manufacturer

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Other
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market leaders are

Demographic development and Medical

progress are the causes of an increasing cost.

In age group of:

70-79 (23% of total costs) 60-69 (21% of total costs).

The costs per covered person are highest in

age group 80+ with 902.

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Functions of pharmaceutical sector in Austria

In Austria there are approximately 330 hospitals. Economic functions optimizing the purchase

and storage of drugs

Evaluating the cost-effectiveness of drugs

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Focusing on quality management like

ISO9000.

Providing best condition for optimum of

diagnostics, drug production and care for therapy

Hauptverband (part of the umbrella

organization of the Austrian Social Security) plays an important

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Re-allocates hospital-based key account

managers (KAM) to communicate effectively.

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Business activity of Pharma Sector in Austria

Life sciences, pharmaceuticals and

biotechnology are the key areas

Austria offers well-established networks of,

innovative biotechnology firms

Engaging pure research in the health

sector.

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 Focusing on red biotechnology, white

biotechnology sector with products like enzymes and food additive

It is specialize in Pharmaceutical agents,

Diagnostics and New therapies

21% of companies of the Austrian

biotechnology industry work in R&D

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Apeiron, Intercell AG, Marinomed

Biotechnologie GmbH, Apomedica and Apomeica are the various Austrian pharmaceutical firms are the firms engaged in different activities

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Role of pharmaceutical industry in the economy of Austria

Role as research innovators is positive Expenditure on healthcare is higher Patent provision in line with WTO/TRIPS

regulations.

Multinational co. production sites in Austria,

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Role of pharmaceutical industry in the economy of Austria

Pharmaceutical innovations bring a therapeutic

progress in medicine.
Cardiovascular drugs leaders in market. Latest pills and powders preference adds to

cost.

Acts as inflator's.
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Structure of pharmaceutical
Consumption. Generic medicines. Trends in consumption. Production.
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Structure of pharmaceutical

Trends in production. Trade channels for market entry. Price structure

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Comparative position of pharmaceutical industry with India

Pharmaceuticals are no more expensive. Pharmaceutical companies leaders product and

process innovations.

Pharmaceuticals 10 % cheaper than year 2000

5/29/12 Not affected by current financial crisis.

Present position and trend of business with India

Key asset to the European economy as well as

Indian economy.

Indian pharmaceutical market is regulated by:

Drug Policy1986, Pharmaceutical policy 2002, National Pharmaceutical policy 2006.

5/29/12 The India's pharmaceutical market grew at 15.7

Present position and trend of business with India

Indian Prime Minister, Dr Manmohan Singh, has

decided to continue with the 100 per cent foreign direct investment (FDI) regime in the pharmaceuticals sector.

In European country Austria was the 10th largest

importer of pharmaceutical products in 2008, accounting for 2.3% of total EU imports.

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Present position and trend of business with India

Austrias imports increased by an annual

average rate of 10% in value and 13% in volume, amounting to 2.4 billion or 48 thousand tones in 2008. Between 2004 and 2008.

Around 54% of Austrias exports was destined

for EU countries, and another 27% to non-EU countries.

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Policies and Norms of Austria for import/export of pharmaceutical industry

Conclusions on the basis of Uruguay Round negotiations in context of pharmaceutical products:
Elimination of custom duty Each government will fully implement the duty

elimination on the date of entry into force of the World Trade Organization (WTO) agreement, for that government.

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Policies and norms of India for import and export to Austria

Formation of the EXIM policy. Industrial licensing for all bulk drugs cleared by

Drug Controller General (India), all their intermediates and formulations will be abolished.

National pharmaceutical policy(NPP)

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Policies and norms of India for import and export to Austria

Custom Duty:

35% for standard areas 25% for preferential areas.

Introducing and Formulating Intellectual Property

protection Rights and TRIPS

Foreign direct investment is up to 100% will be

permitted 5/29/12

Policies and norms of India for import and export to Austria

Two major issues on account of globalization and implementation of our obligations under TRIPs:
The essentiality of improving incentives

for research and development in the Indian pharmaceutical industry

The need for reducing rigours of price 5/29/12

EU industry continues to encounter Some Tariff and Non Tariff Barriers

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In certain countries such as India.

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The key NTBs include:

A lack of transparency Regulatory barriers Intellectual property rights and the

counterfeiting of medicines

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Potential for import/export in Austria

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Imports
European country Austria was the 10th largest importer of pharmaceutical products in 2008.

It accounts for 2.3% of total EU imports Imports from EU countries increased by an

annual average rate of 12% in terms of value

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between 2004 and 2008.

Exports:
for 1.8% of total European pharmaceutical exports.

Austria was the 10th largest EU exporter, value

Around 54% of Austrias exports was destined

for EU countries, and another 27% to non-EU countries, excluding DCs. The country Russia, the leading recipient from Austria, accounted for
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of Austrian exports.

Opportunities and Threats:

+/- Although Austrias pharmaceutical imports were

increased rapidly in the review period, they remain relatively small. Exports are almost as big as the imports

Austrias

pharmaceutical

imports

from

developing countries are limited. Moreover, imports from developing countries are dominated by India.
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This country will be a strong competitor to other

+ Nonetheless, imports from developing

countries are increasing at fast rates, which could signify opportunities for developing country exporters.

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Business opportunities in future

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Business opportunities in Indian Pharmacy Industry India Business Strengths:

Extreme pharmaceutical market growth

potential, highly reliant on modernization and reform.

Long-established trade patterns with Western

Europe and the US.

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 Strong local manufacturing sector with leading

domestic players establishing a notable international presence.

Swift market approval times. Low-cost but skilled English-speaking labor

force.

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Business Opportunities:
Healthy generic and OTC drug market growth. Increased public funding for disease eradication

programmers
Increasing demand for generic drugs in its Asian

neighbors, and globally.

Large and growing population boosting

pharmaceutical and medical demand.

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 Globally expansion of larger local companies. Increasing research and development (R&D)

activity by domestic firms.

Underdeveloped market for chronic illnesses and

diagnostics.
The recognition of pharmaceutical patents from

January 2005.

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 Ongoing free trade agreement (FTA) negotiations

with the Association of South East Asian Nations (ASEAN) group of countries and Austria.
Globally Increased demand for active

pharmaceutical ingredients (APIs) produced in India.

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Business Opportunities and threats in Austria

+/-The

consumption of pharmaceutical products in Austria is increasing at significant rates, but the share of generic medicines in the total pharmaceutical market remains limited.

+ Due to Austrias cost-containment policies

involving the health-care sector, however, it is possible that a rise in the consumption of generic medicines will take place, which will 5/29/12 provide more opportunities for exporters of

+ Because of higher costs due to an ageing population, Austria could provide opportunities for developing countries. However, it is likely that a large share of the products used are non-generic pharmaceuticals, which are of less importance to developing country suppliers.

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Conclusions
Tremendous growth of Indian market Focusing on healthcare in western markets

Global ambitions to develop R&D

capabilities, to move in new drug developments and to enter in the new

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markets.

Conclusions
The sector got its momentum from government

policies which developed its inherent strength.

International drug-makers have introduced

generic or low-priced version of popular medicines and have also decreased prices of their existing products
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Conclusions
The European has set out a number of tools

available to tackle relevant trade barriers and resort to the Dispute Resolution settlement mechanism.

The EUs pharmaceutical industry is a trade

success story and retains a strong position

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with the global market.

Suggestions

The Indian pharmaceutical

market need to possess the major opportunities for Indian and multinational companies.
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Suggestions
There should be proper focus on the investment

Strategy should be devised for the

pharmaceutical companies, to face competitive pressure and maintain market standing.

Efforts should be made to develop retail sector. 5/29/12

Suggestions
The multinationals appear to have lost some

momentum and market share since 2000, so action should be taken accordingly.

Large firm should be provided patented

products, as well as equal regulatory and infrastructural support.

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Suggestions

Indian pharmaceutical companies

should do well to recognize the trends of global market and prepare for its implications.
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 Strategies must be taken into account for

these implications.
Policy makers need to provide the

appropriate incentives to encourage access and innovation.

The EU needs to trade carefully.

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The

pharmaceutical
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Thank You

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