Indian Pharmaceutical Industry: Strategies, Trends and Opportunities

Table of Contents

Introduction

• Market Size of Indian Pharmaceutical Industry
• Break-up of the Market
• Key Statistics of the Indian Pharmaceutical Industry
• Historical Background

Market Overview

• Global Pharmaceutical Sector
  • GLOBAL EXPENDITURE PATTERNS
  • PHARMACEUTICAL PRODUCTS AS A PERCENTAGE OF HEALTHCARE
  • SPENDING
  • R&D EXPENDITURES
  • MANAGED CARE SPENDS
  • GENERICS GAINING GROUND
  • BLOCKBUSTER DRUGS
  • STRUCTURAL CHANGES IN THE INDUSTRY

Characteristics of Indian Pharmaceutical Industry

• Market Overview
  • PROFITABILITY
  • PATENT REFORMS
  • IMPLICATIONS OF INDIAN PATENT (AMENDMENTS) ACT, 2005
  • COST ADVANTAGES
  • LOCATION
  • RISKS
  • TRADITIONAL MEDICINE
• Segmentation of the Indian Pharmaceutical Industry
  • MAJOR THERAPEUTIC SEGMENTS
  • STRATEGIC GROUPS

Key Emerging Trends

• Organised Sector
  • MULTINATIONAL PHARMACEUTICAL FIRMS
  • INDIAN PHARMACEUTICAL FIRMS
• Unorganised Sector
• Collaboration between Indian Firms and Multinationals

Critical Success Factors in the Industry

• Research & Development
• Production
• Marketing, Sales and Distribution
• Alliances
• Critical Success Factors-Formulations
• Critical Success Factors -Bulk Drugs
• Post 2005 Critical Success Factors
• Critical Success Factors for Indian Companies
• Critical Success Factors for Multinationals

Research and Development

• Kinds of Research
• Bringing Out a Generic Drug
• Pharmaceutical R&D Value Chain
  • R&D CAPABILITIES
• R&D In India
  • CHANGING SCENARIO OF INDIAN R&D
  • SIGNIFICANT MILESTONES IN LOCAL R&D

Industry Structure

• Investments
• Exports
• Research and Development
• Policies and Regulations
  • INDIAN PATENTS ACT 1970
  • DPCO (DRUG PRICE CONTROL ORDER) -1970
  • GATT AND WTO
• Implications of WTO
  • ON PRICES OF DRUGS
  • ON R&D
• Intellectual Property Rights (IPR)
• Changing Scenario of Product Patent Regime
• Critic' s View
  • PRICE ESCALATION
  • MNC DOMINANCE
  • R&D EXPENDITURE
  • TECHNOLOGY
• Conclusion

Marketing & Distribution in Indian Pharmaceutical Industry

The Changing External Environment

Porters Five Forces Model

• Threat of New Entrants
• Intensity of Competition
• Threat of Substitutes
• Bargaining Power of Buyers
• Bargaining Power of Suppliers

Pharmaceutical Outsourcing in India

• Industry Drivers
  • R&D COSTS
  • PATENTS EXPIRY
  • NEW OPPORTUNITIES
• Pharmaceutical Outsourcing Models
  • CONTRACT MANUFACTURING
  • CONTRACT RESEARCH
• Clinical Trials Outsourcing
  • MARKET SIZE
  • REGULATIONS
  • CHALLENGES
• Future Directions

Future Outlook for the Indian Pharmaceutical Industry

• Strategic Options for Indian Firms
• Entering Overseas Markets
• Alliance Strategies
• Patenting Strategies
• Biotechnology
• Vaccine Strategies
• Implications for MNCs
• Product Patents
• Industry Profitability
• Alternative Medicine
• Emerging Trends
• Key Growth Barriers for the Industry
• Consolidation
• Bulk Drug Exports
• Imports
• Policy Recommendations

Indian Medical Equipments Market

• Market for Medical Devices
• Industry Trends
• Key Market Segments

Indian Healthcare Market

• Market Overview
• Private Sector
• Key Players in the Indian Healthcare Industry
  • APOLLO GROUP
  • MAX HEALTHCARE
  • HINDUJA GROUP

Indian Biotechnology Industry

• Market Overview
  • KEY PLAYERS
• Projected Market Size of Indian Biotechnology Industry
• Industry Growth
  • BIOPHARMACEUTICALS
• Future Developments
• Alliances
• Indian Bioinformatics Industry
  • KEY PLAYERS IN THE INDIAN BIOINFORMATICS INDUSTRY

Key Players in the Indian Pharmaceutical Industry

Key Players in the Indian Pharmaceutical Industry

Key Multi National Corporations

• Glaxo Smithkline
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Pfizer
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Novartis
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
• Aventis
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Wyeth
  • INTRODUCTION
  • PRODUCTS AND SERVICES
• Merck
  • INTRODUCTION
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP

Key Indian Firms in the Indian Pharmaceutical Industry

• Ranbaxy
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Nicholas Piramal India
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Dr. Reddy' s Labs
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Cipla
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Lupin
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • COMPANY STRATEGY
  • REVENUE BREAK-UP
• Wockhardt
  • INTRODUCTION
  • BUSINESS MODEL
  • PRODUCTS AND SERVICES
  • REVENUE BREAK-UP

Case of a Leading Pharmaceutial Firm: Ranbaxy Laboratories

• History
• Ranbaxy' s Successful Report Card
• Why Has Ranbaxy Been This Successful?
• Evolution of Ranbaxy: Time Line Analysis
  • 1970-EARLY 1980S
  • EARLY 1980S-1994
  • 1994 - 1997
  • 1997 -1999
  • POST 1999
• Leveraging Mergers & Alliances
  • RESEARCH AND DEVELOPMENT
  • ALLIANCES FOR ENTRY INTO US AND EUROPEAN MARKETS
  • GROWTH OF MARKET SHARE AND PRODUCT PORTFOLIO
• Company Acquisitions
• Brand Acquisitions
• Creating Value through Functional Strategies
  • MARKETING
  • RELATIONSHIP MARKETING
  • CO-MARKETING
  • SALES STRENGTH
  • BRAND RECOGNITION
• Ranbaxy' s Product Strategy
• Ranbaxy' s R&D Strategy
• Ranbaxy' s Human Resources Strategy
• Information Technology

Revenue Model for a Pharmaceutical Company

• Strategic Options for Pharmaceutical Firms
  • INVEST IN RESEARCH AND DEVELOPMENT CAPABILITIES
  • GROW A WIDE PRODUCT PORTFOLIO
  • GROWTH THROUGH MERGERS AND ACQUISITIONS
  • GROWTH THROUGH BRAND ACQUISITION
  • GROWTH THROUGH LICENSING AGREEMENTS
  • CO MARKETING AGREEMENT WITH COMPETITORS
  • REMAIN A GENERICS PLAYER
• How to Build Sustainable Competitive Advantage
  • PRODUCT PORTFOLIO MANAGEMENT
  • INTEGRATED HEALTHCARE COMPANY
  • DISTRIBUTION
  • DISEASE MANAGEMENT/ SERVICE PROVIDER
  • CLINICAL TEST CENTRES
  • HEALTHCARE FUNDING SYSTEMS
  • RE-ENGINEERING
  • OUTSOURCING SERVICES

Case of a Leading Pharmaceutial Firm: Dr Reddys Labs

• Company Background
• Branded Generics
• International Marketing
• People Management
• Research & Development
• Future

List of Tables

• TABLE 1: KEY PHARMACEUTICAL COMPANIES IN INDIA
• TABLE 2: LEADING THERAPEUTIC SEGMENTS
• TABLE 3: MARKET SHARE OF MAJOR THERAPEUTIC SEGMENTS
• TABLE 4: LEADING BRANDS IN MAJOR THERAPEUTIC SEGMENTS
• TABLE 5: BRAND ACQUISITIONS IN THE INDIAN PHARMACEUTICAL INDUSTRY
• TABLE 6: R&D INVESTMENT OF INDIAN PHARMACEUTICAL COMPANIES
• TABLE 7: WHERE INDIA STANDS ON PATENTS
• TABLE 8: COST OF DRUG DEVELOPMENT
• TABLE 9: COMPARISON OF COSTS OF DRUG DEVELOPMENT
• TABLE 10: COMPARISON OF COSTS OF DRUG MANUFACTURING
• TABLE 11: CLINICAL TRIAL LABORATORIES IN INDIA
• TABLE 12: INDIAN MEDICAL EQUIPMENT MARKET SIZE
• TABLE 13: INDIAN HEALTHCARE MARKET STATISTICS
• TABLE 14: LIST OF BIOTECHNOLOGY FIRMS IN INDIA
• TABLE 15: ALLIANCES BETWEEN INDIAN ENTITIES AND MNC BIOTECHNOLOGY FIRMS
• TABLE 16: ALLIANCES BETWEEN INDIAN IT AND INDIAN BIOTECHNOLOGY ENTITIES
• TABLE 17: KEY PLAYERS AND THEIR CHARACTERISTICS
• TABLE 18: KEY BRANDS OF GLAXO SMITHKLINE IN INDIA
• TABLE 19: KEY BRANDS OF PFIZER IN INDIA
• TABLE 20: KEY BRANDS OF NOVARTIS IN INDIA
• TABLE 21: KEY BRANDS OF AVENTIS IN INDIA
• TABLE 22: KEY BRANDS OF WYETH IN INDIA
• TABLE 23: KEY BRANDS OF MERCK IN INDIA
• TABLE 24: KEY BRANDS OF RANBAXY
• TABLE 25: KEY BRANDS OF NICHOLAS PIRAMAL
• TABLE 26: KEY BRANDS OF DR REDDY' S
• TABLE 27: KEY BRANDS OF CIPLA
• TABLE 28: KEY BRANDS OF LUPIN
• TABLE 29: KEY BRANDS OF WOCKHARDT
• TABLE 30: RANBAXY' S IT INITIATIVES
• TABLE 31: TYPICAL PRICE DROPS AFTER A DRUG GOES OFF PATENT

List of Figures

• FIGURE 1: MARKET SIZE OF INDIAN PHARMACEUTICAL INDUSTRY
• FIGURE 2: VALUE OF PHARMACEUTICAL EXPORTS
• FIGURE 3: VALUE OF PHARMACEUTICAL IMPORTS
• FIGURE 4: PROJECTED BREAK-UP OF INDIAN PHARMACEUTICAL INDUSTRY
• FIGURE 5: VALUE OF BULK DRUG PRODUCTION IN INDIA
• FIGURE 6: STRATEGIC GROUP MAPPING OF INDIAN PHARMACEUTICAL INDUSTRY
• FIGURE 8: VALUE ADDED BY PHARMACEUTICAL PRODUCTS
• FIGURE 9: EVOLUTION OF KNOWLEDGE BASE OF INDIAN PHARMACEUTICAL INDUSTRY
• FIGURE 10: DISTRIBUTION CHAIN OF PHARMACEUTICAL COMPANIES IN INDIA
• FIGURE 11: PORTER' S 5 FORCES MODEL APPLIED
• FIGURE 12: NEW DRUG APPLICATION REVIEW PROCESS WITH THE U.S. FOOD & DRUG ADMINISTRATION
• FIGURE 13: SIZE OF INDIAN CLINICAL TRIALS MARKET
• FIGURE 14: PATENT EXPIRATION BY THERAPEUTIC CATEGORIES
• FIGURE 15: NUMBER OF HOSPITALS IN INDIA
• FIGURE 16: NUMBER OF DISPENSARIES IN INDIA
• FIGURE 17: NUMBER OF PRIMARY HEALTH CENTRES IN INDIA
• FIGURE 18: NUMBER OF HOSPITAL BEDS IN INDIA
• FIGURE 19: NUMBER OF DOCTORS IN INDIA
• FIGURE 20: MARKET SIZE OF INDIAN BIOTECHNOLOGY INDUSTRY
• FIGURE 21: MARKET SIZE OF INDIAN BIOINFORMATICS INDUSTRY
• FIGURE 22: MARKET BREAK-UP OF INDIAN BIOINFORMATICS INDUSTRY
• FIGURE 23: GLAXO SMITHKLINE INDIA PRODUCT PORTFOLIO
• FIGURE 24: PFIZER INDIA PRODUCT PORTFOLIO
• FIGURE 25: WYETH INDIA PRODUCT PORTFOLIO
• FIGURE 26: MERCK INDIA REVENUE BREAK-UP BASED ON BUSINESS SEGMENTS
• FIGURE 27: RANBAXY REVENUE BREAK-UP
• FIGURE 28: NICHOLAS PIRAMAL BREAK-UP OF REVENUE FROM FORMULATIONS
• FIGURE 29: NICHOLAS PIRAMAL REVENUE BREAK-UP
• FIGURE 30: DRL . REVENUE BREAK-UP
• FIGURE 31: LUPIN BUSINESS PROFILE
• FIGURE 32: LUPIN THERAPEUTIC PORTFOLIO
• FIGURE 33: RANBAXY' S FOCUS DURING 1970-EARLY 1980S
• FIGURE 34: RANBAXY' S FOCUS DURING 1980-1994
• FIGURE 35: RANBAXY' S FOCUS DURING 1994-1997
• FIGURE 36: RANBAXY' S FOCUS FROM 1997 ONWARDS
• FIGURE 37: VALUE CHAIN OF RANBAXY
• FIGURE 38: STRATEGIC OPTIONS AVAILABLE FOR PHARMACEUTICAL FIRMS