Ind. Pharma 1r61v

Pre 1970

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Phase I Early Years Market share domination by foreign companies Relative absence of organized Indian companies

1970-1980

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Phase II Government Control Indian Patent Act –1970 Drug prices capped Local companies begin to make an impact

1980-1990

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Phase III Development Phase Process development Production infrastructure creation Export initiatives

1990-2000

• Phase IV • Growth Phase • Rapid expansion of domestic market • International market development • ResearcAh orientation

2000-2010

• Phase V • Innovation and Research • New IP lawA • Discovery Research • Convergence

PRESENT STATUS OF INDIAN PHARMACEUTICAL INDUSTRY The annual turnover of the Indian pharmaceutical industry is over US$ 11 billion. Globally it ranks 4th in of volume with a share of 8% in the world pharmaceutical market. In of value, it ranks 14th. Key therapeutic segments of Indian pharmaceutical industry include anti-infective, gastrointestinal and cardio-vascular. Acute therapies make up about 60% of the market. However, it is expected that with the changing lifestyle and aging population, sales o f chronic therapies (i.e. diabetes, cardiovascular) are growing rapidly.

EXPORTS: The pharmaceutical industry is also showing good performance in of exports. It has grown at a CAGR of 14% in the last decade. Major export markets include highly regulated markets such as USA, , UK and Canada. Europe is the biggest export destination for Indian pharmaceuticals ing for more than 30% of the total exports, followed by the Americas region (25%).

Government policies such as Drugs and Cosmetics Act (1940), Drugs Policy (1986), Indian Patents Act (1970), Drug Price Control Order (1995), Pharmaceutical Policy (2002), Indian Patents (Amendment) Act (2005), have played a major role in the growth of Indian pharmaceutical Industry. The Government has also formulated a Draft National Pharmaceutical Policy (2006), which will be finalized after consultation with the stakeholders. Besides, the Government has also facilitated the growth of the Indian pharmaceutical industry through institutional framework and encouraging investments in R&D.

MARKET SEGMENTATION

THE CHANGING SCENARIO India to become an outsourcing partner in manufacturing and R&D, and as a location for clinical trials. The Indian economy is growing strongly and healthcare is expanding to meet the needs of a growing population with :changing disease profile. Increase in insurance coverage, aggressive market creation, growth in the income of the Indian population and steady government investment into medical infrastructure Has further propelled the growth of the industry, such that it is on the threshold of becoming a competitor of global Pharmaceutical companies in some key areas, and a potential partner in others.

THE MAJOR REASONS FOR GROWTH OF PHARMA INDUSTRY IN INDIA The Indian economy is growing fast, and is valued at US$1.430 trillion in 2010. GDP growth, has reached 9.66% in the year 2010, Furthermore, India’s share in the world GDP has been steadily in creasing, and is expected to reach 6.28% in 2015, up from 4.17% in 2005.

The Indian government has been making efforts to improve nationwide provision of healthcare. It has launched policies that are aimed at: building more hospitals, boosting local access to healthcare, improving the quality of medical care &training  increasing public expenditure on healthcare to 2-3% of GDP, up from a current low of 1%.

 Growing middle class with higher purchasing power.  Changing disease profile  Healthcare Insurance.

SWOT ANALYSIS STRENGTH

WEEKNESS

• Higher GDP growth • Cost competitiveness • Low cost, highly skilled set of English speaking labor force • Growing treatment naïve patient population

• Poor all-round Infrastructure • Stringent price control. • Lack of data Protection.

OPPORTUNITIES

THREATS

• Global demand for genetics rising. • Rapid OTC & generic market. • Increased penetration in the non metro market • Increase in health care insurance. • Investment from MNC’s. • PPP for strengthening infrastructure

• Global demand for genetics rising. • Rapid OTC & generic market. • Increased penetration in the non metro market • Increase in health care insurance. • Investment from MNC’s. • PPP for strengthening infrastructure

Changing paradigm: Indian pharmaceutical industry Revenues from domestic market pharmaceutical revenues in 2006-07

dominated

the

total

Exports contribution is expected to sur the domestic turnover by 2010 The pharma sector would witness an upswing in the revenues from service segment due to the increase in outsourcing of Contract research & manufacturing services (CRAMS) to India.

SERVICES- 6.6% 2006

DOMESTIC- 57% PRODUCTS- 93.4%

PHARMACEUTICAL INDUSTRY

EXPORT- 43% SERVICES- 12% 2010

DOMESTIC- 38% PRODUCTS- 88% EXPORT- 62%

TOP 10 PHARMACEUTICAL COMPANIES OF INDIA

TOP 20 BRANDS