Abstract
Indian pharmaceutical industry is undergoing fast paced changes. The Indian
Generics market is witnessing rapid growth opening up immense opportunities
for firms. This is further triggered by the fact that generics worth over $40
billion are going off patent in the coming few years which is close to 15% of
the total prescription market of the US. The Indian pharmaceutical companies
have been doing extremely well in developed markets such as US and Europe,
notable among these being Ranbaxy, Dr. Reddy' s Labs, Wockhardt, Cipla,
Nicholas Piramal and Lupin. The companies have their strategies in place to
leverage opportunities and appropriate values existing in formulations, bulk
drugs, generics, Novel Drug Delivery Systems, New Chemical Entities,
Biotechnology etc. The industry ranks fourth globally in terms of volume and
in terms of value, it is ranked thirteenth. The industry has thrived so far on
reverse engineering skills exploiting the lack of process patent in the
country. This has resulted in the Indian pharmaceutical players offering their
products at some of the lowest prices in the world. The quality of the
products is reflected in the fact that India has the highest number of
manufacturing plants approved by US FDA, which is next only to that in the US.
Multinational companies have traditionally dominated the industry, which is
another trend seeing a reversal. Currently, it is the Indian companies which
are dominating the marketplace with the local players dominating a number of
key therapeutic segments. The market is also very fragmented with about 30,000
entities and the organized sector consisting of about 300 entities.
Consolidation is increasing in the industry with many local players building a
global outlook and also growing inorganically through mergers and acquisitions.
Key facts
- The growth of the Indian pharmaceutical industry reflects the rise of the
industry up the value chain of activities involved in pharmaceutical R&D
- The Indian industry has attained cost advantages in process research used
for generic drugs & value added generics production
- The acceptance of provisions of the agreement on TRIPS is expected to
change the orientation of Indian companies towards R & D
- Indian companies have started investing in complex R & D activities like
novel drug delivery system and new drug discovery
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