INTRODUCTION

2. INTRODUCTION • In 1930, in Calcutta the first pharmaceutical company called Bengal Chemicals and Pharmaceutical Works, which still is today as one of 5 government-owned drug manufacturers was started. • The history of Indian pharmaceutical market in 1970s was almost non- existent. Today, India has gained immense importance and carved a niche for itself in the pharmaceutical domain. •  India is the third largest player in the world with 500 different APIs and ranks fourth globally in terms of production volumes, and 13th globally in domestic consumption value.

4. Indian Pharmaceutical Industry – the evolution.. 70’s thru 90’s 90’s onwards Prior to 1970 • Growth of APIs and Formulations • APIs to US & Europe • Reverse engineering of APIs • Leveraged excellent Chemistry skills • Research only in Government institutions • Import substitution • Export Led growth • Global generics opportunity • – US and EU key markets • Globalization of key local players • Outsourcing wave – contract research and manufacturing • Emerging Discovery research in Indian Pharma companies • Transition to product patent regime • Dominated by MNCs • Prices comparable to International prices • Government started IDPL and HAB • 1972 patent law allowed only process patents Key Driver Patent Regime

7. INDIAN SCENARIO • The Pharmaceutical Industry in India is one of the largest in the world. • It ranks 4th in the world, pertaining to the volume of sales. • The estimated worth of the Indian Pharmaceutical Industry is US$ 6 billion. • The growth rate of the industry is 13% per year. • Almost most 70% of the domestic demand for bulk drugs is catered by the Indian PharmaIndustry. • The Pharma Industry in India produces around 20% to 24% of the global generic drugs. • The Indian Pharmaceutical Industry is one of the biggest producers of the active pharmaceutical ingredients (API) in the international arena. • The Indian Pharma sector leads the science-based industries in the country. • The growing size of the geriatric population in India will be a key factor in influencing the growth segment of the chronic segment.

8. GLOBAL SCENARIO

9. CONTD..

10. SWOT Analysis Of Indian Pharmaceutical Industry

11. Key Players Locally

12. International Players Source: fiercepharma.com/special-reports/top-pharma-companies-2012-revenues

13. KEY MERGERS

14. FUTURE OUTLOOK

15. RECOMMENDATIONS • Income tax exemptions should be given on clinical trials & contract research done outside the company and abroad. • Spurious drug problem should be tackled. • India should exploit it’s age old know how on traditional & herbal medicines. • R&D and Human resources development are a major recommendation concern. • Allowing for private investments in medical education was a major step in this direction. Beyond setting up new medical education centres, the government needs to encourage innovative ways to address the talent deficit. The Bachelor of Rural Medicine and Surgery (BRMS) programme, launched in Tamil Nadu, is a case in point.

16. CONCLUSION • Our outlook on the Indian Pharmaceutical Industry remains favourable, reflecting our view that earnings,n growth will continue, benefitting from healthy growth in the domestic formulations business. On the CRAMS front, Indian players are focusing on providing services across the value chain spanning from development stage to commercial scale production. • Key challenges facing the industry are potential implementation of the new pricing policy in India, increasing competitive pressure in the chronic segments, aggressive approach such as authorized generics by innovators in the US and healthcare reforms in European markets are some of the factors that could impede profitability for pharma companies.