PRESENT SCENARIO OF INDIAN PHARMACEUTICAL INDUSTRY IN VIEW OF GLOBAL MARKET

THE INDIAN GOVERNMENT HAS STARTED TO ENCOURAGE THE GROWTH OF DRUG MANUFACTURING BY INDIAN COMPANIES IN THE EARLY 1960s. AT PRESENT THERE ARE MANY NUMBER OF PHARMACEUTICAL COMPANIES IN INDIA WITH MANY NOVEL DRUG INVENTORIES

1. INDIAN PHARMACEUTICAL INDUSTRY
IN VIEW OF GLOBAL MARKET
PRESENT SCENARIO OF
PRESENTED BY:
SRIDIVYA ANNAVARAPU
I/II M.PHARM(DRA) 2015

2. INTRODUCTION
TheGovernmentstartedtoencouragethegrowthofdrug
manufacturingbyIndiancompaniesintheearly1960s,and
withthePatentsActin1970.
However,economicliberalizationin90sbytheformerPrime
MinisterP.V.NarasimhaRaoandthethenFinanceMinister,
Dr.ManmohanSinghenabledtheindustrytobecomewhatit
istoday.
India'sbiopharmaceuticalindustryclockeda17percent
growthwithrevenuesofRs.137billion($3billion)inthe
2009-10financialyearoverthepreviousfiscal
2

3. Bio-Pharmawasthebiggestcontributorgenerating60
percentoftheindustry'sgrowthatRs.8,829crore,followed
bybio-servicesatRs.2,639croreandbio-agriatRs.1,936
crore.
India'shealthcaresectorisestimatedtoreach$197billion
by2017-18.
ExportsofpharmaceuticalsproductsfromIndiaincreased
fromUS$6.23billionin2006-07toUS$8.7billionin2008-09
acombinedannualgrowthrateof21.25%.
3

4. PRESENT SITUATION
ThenumberofpurelyIndianpharmacompaniesisfairly
low.
In2002,over20,000registereddrugmanufacturersinIndia
sold$9billionworthofformulationsandbulkdrugs.
85%oftheseformulationsweresoldinIndiawhileover
60%ofthebulkdrugswereexported,mostlytotheUnited
StatesandRussia.
Thankstothe1970PatentAct,multinationalsrepresentonly
35%ofthemarket,downfrom70%thirtyyearsago.
4

5. GLOBAL SCENARIO
TheIndianpharmaceuticalindustryhasbecomethe
thirdlargestproducerintheworldandispoisedtogrow
intoanindustryof$20billionin2015fromthecurrent
turnoverof$12billion.
Thereare74USFDA-approvedmanufacturingfacilities
inIndia,morethaninanyothercountryoutsidetheU.S,
andin2005,almost20%ofallAbbreviatedNewDrug
Applications(ANDA)totheFDAareexpectedtobefiled
byIndiancompanies.
5

6. A BRIEF REPORT
ON
PHARMACEUTICAL
INDUSTRY IN
INDIA
6

7. OVERVIEW OF PHARMACEUTICAL INDUSTRY
TheIndianPharmaceuticalsectorishighly
fragmentedwithmorethan20,000registered
units.Ithasexpandeddrasticallyinthelast
twodecades.Thepharmaceuticaland
ChemicalIndustryinIndiaisanextremely
fragmentedmarketwithsevereprice
competitionandgovernmentpricecontrol.
7

8. ThePharmaceuticalIndustryinIndiameets
around70%ofcountry’sdemandforbulk
drugs,drugintermediates,pharmaceutical
formulations,chemicals,tablets,capsules,
orals,andinjectibles.Thereare
approximately250largeunitsandabout
8000smallscaleunits,whichfromthecore
ofthepharmaceuticalindustryinIndia
(including5CentralPublicSectorUnits).
8

9. TheGovernmenthasalsoplayedavitalrolein
thedevelopmentroleoftheIndiaSoftware
Industry.
In1986,theIndianGovernmentannounceda
newsoftwarepolicywhichwasdesignedtoserveas
acatalystforthesoftwareindustry.
Thiswasfollowedin1988withtheWorldMarket
PolicyandtheestablishmentoftheSoftware
TechnologyParksofIndia(STP)scheme.
9

10. CURRENT SCENARIO
India is now among the top five pharmaceutical
emerging markets.
The Indian Pharmaceutical Industry is estimated to
grow at 20 % compound annual growth rate (CAGR)
over the next five years.
There will be new drug launches, new drug fillings,
and Phase II clinic trials throughout the year.
10

11. Bio-pharmaisthelargestsectorcontributingabout
62%ofthetotalrevenue,withrevenuegenerationto
thetuneofoverUS$2.03billion.
Thebio-pharmasectorcomprisesvaccines,
therapeuticsanddiagnostics.
India’sbiotechnologyindustrycomprising
bio-pharmaceuticals,bio-services,bio-agriculture,bio-
industryandbioinformaticsmayreachtheUS$7
billionmarkbytheendofFY15accordingtoan
industrybody.
11

12. Diagnostics Outsourcing / Clinical
Trials
SomeofthemajorIndianPharmaceutical
firms,includingSunPharma,Cadila
HealthcareandPiramalLifeScienceshad
appliedforconductingclinicaltrialsonat
least12newdrugsin2010,indicatinga
growinginterestinnewdrugdiscovery
research.
12

13. Growth of Exports
Export data of Indian Pharma Industry.
In terms of value, exports of Indian Pharmaceutical Products
increased at a CAGR of 26.1 percent to touch US $ 10.1
billion during FY 06-13
13

14. Anti-inflectivedrugscommandthelargestshare
(16%)intheIndianPharmaMarket.
Indian Pharmaceutical market segments by value
14

15. MAJOR PHARMACEUTICAL COMPANIES IN INDIA
Company Name Sales in INR billion
CIPLA 69.77
RANBAXY LAB 76.86
Dr.REDDY’S LABS 66.86
SUN PHARMA 40.15
LUPIN LTD 53.64
AUROBINDO PHARMA 42.84
JUBILANT LIFE 26.41
CADILA HEALTH 31.52
IPCA LABS 23.52
WOCKHARDT 26.50
15

16. CIPLA
CiplawasfoundedbyY.KHamiedintheyearof1935andwas
knownasPharmaceuticallaboratories.
CiplawasregisteredinAugust,1935asapubliclimitedenterprise
anditbeganwithanauthorizedcapitalofRs.6Lakhs.
Todaythecompanyhasitsfacilitiesspreadacrossseverallocations
acrossIndiasuchasMumbai,Goa,Patalganga,andBangalore.
Ciplaalsohasanextensiveexportmarketandregularlyexportsto
morethan150countriesinregionssuchasNorthAmerica,South
American,Asia,Europe,MiddleEast,Australia,andAfrica.
Fortheyearended31
st
March,2007Cipla’sexportswereworth
approximatelyRs.17,500million.
16

17. Ranbaxyisamongthepredominantpharmaceutical
companiesinIndiaandwasfoundedin1961.Ranbaxyisa
researchbasedPharmagiantandbecameapubliclimited
companyin1973.
Ranbaxywasrecentlyrankedamongthetop10
internationalpharmaceuticalcompaniesintheworldhave
presenceacross49countries.
Ranbaxyisalsoreputedforits11state-of-the-art
manufacturingfacilitiesincountrieslikeChina,India,
Brazil,SouthAfrica,andNigeria.
Ranbaxyhasalsowonseveralawardsandrecognitionsfor
itspioneeringinitiativesinthedevelopingmarketsofthe
world.
17

18. •InthepresentscenarioRanbaxyCommandsmorethan5
%shareoftheIndianpharmaceuticalmarketRanbaxy’s
productportfolioisdiverseandincludesdrugsthat
infectiousdiseases,gastro-enteritis,painmanagement,
cardiovascularaliments,dermatology,andcentralnervous
systemrelatedailments.
•Thecompanyisespeciallywellknownforhavingthe
highestresearchanddevelopment(R&D)budgetamong
PharmacompaniesintheworldwhichisashighasUS$
100million.
•RanbaxyIndiaoperationsarehandledby2,500employees
andtheCompany’smarketshareinIndiaiswortharound
US$6billion.
18

19. Dr.Reddy’sLaboratoriesisoneofthepopularpharmaceuticalcompanies
withbaseinmorethan100countries.ThemedicinesofDr.Reddy’s
LaboratoriesLimitedareeasilyavailableallacrosstheglobe.
Dr.Reddy’sPharmaceuticalCompanyisverymuchcustomerfriendly.It
takescareofthefactthatmaximumpeoplegetbenefitedbytheproductsof
thispharmaceuticalcompany.
Ittriestomeetthemedicalneedsofthepeople.
ThoughDr.Reddy’sLaboratoriesislocatedinvariouspartsoftheworldbut
ithasitsheadquartersinourIndia.
ThesubsidiariesofthiscompanyarefoundatvariouscountrieslikeUS,
Germany,UK,Russia,andBrazil.
16countrieshavetherepresentativeofficesofDr.Reddy’sLaboratories
limited.
21Countrieshavethirdpartydistribution.
19

20. SUN PHARMA
SunPharmaceuticalswasestablishedintheyear1983.the
companystartedwithonly5productstocurepsychiatric
illness.
Sunpharmaisknownasworldwideasthemanufactureof
SpecialtyActivePharmaceuticalsIngredientsand
formulations(API)
However,thecompanyisalsoconcernedwithchronic
treatmentssuchascardiology,psychiatry,neurology,
gastroenterology,diabetology,andrespiratoryaliments.
ActivePharmaceuticalsIngredients(API)includespeptides,
steroids,hormones,andanti-cancerdrugsandtheirquality
isinternationallyapproved.
20

21. •TheinternationalofficesofSunPharmaceuticals
IndustriesLtd.ArelocatedinBritishVirginIslands,
Russia,andBangladesh.
•InIndia,theofficesareinVapi,Silvassa,Panoli,
Ahmednagar,andChennai.
21

22. AurobindoPharma,anIndia-basedPrivate
Pharmaceuticalcompanyhavingpresencearoundthe
world.
AurobindoPharmawasestablishedintheyear1986and
starteditsoperationsin1988-89inPondicherry,India.
NowtheCompanyisheadquarteredatHyderabad,India.
AurobindoPharmaisoneofthemostrespectedgeneric
pharmaceuticalsandactivePharmaceuticalIngredients
(API)manufacturingcompanyoftheworld.
22

23. AurobindoPharmaoperatesinover100countriesacross
theworld.
Further,thePharmaceuticalmajormarketsareover180
APIsand250formulationsthroughoutthesedestinations.
SoFar,Aurobindohasreceived45ANDAapprovals(both
finalandtentative)fromUSAalone.
23

24. ANTIBIOTICS
ANTI-RETROVIRALS
CVS
CNS
GASTROENTEROLOGICAL
ANTI-ALLERGIC 24

25. CHALLENGES
Overthepastdecade,pharmaceuticalcompanieshaveentered
adifficultperiodwhereshareholdersthemarket,andregulators
havecreatedsignificantpressuresforchangewithinthe
industry.
Asaresultlargerpharmaceuticalcompaniesareshiftingtonew
businessmodelwithgreateroutsourcingofdiscoveryservices,
clinicalresearchandmanufacturing.
Leadersofthelargestglobalpharmaceuticalcompanies
recognizetheneedfortransformationalchangeintheir
organizations,butwillneedtomoveswiftlytoensuresustained
growth. 25

26. FUTUREGROWTH
Indiawillseethelargestnumberofmergerinthe
pharmaceuticalandhealthcaresector,accordingto
consultingfirmGrantThornton.Asthegrowthof
Indianpharmacompanieswillalsobedrivenbythe
fastestgrowingmoleculesinthediabetes,skincare,
andeyecaresegment.
26

27. 27

28. 28

29. 29

30. 30

31. 31

32. 32

33. 33

34. 34

35. 35

36. 36

37. 37

38. 38

39. 39

40. 40

41. 41

42. 42

43. 43

44. 44

45. 45

46. 46

47. 47

48. 48

49. 49

50. 50