indian pharmaceutical industry by big pharma jobs
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Indian Pharmaceutical Industry
Big Pharma Jobs(Division: Big Ideas HR Consulting Pvt. Ltd.)
Industry background
O This total is expected to
reach $1.5 trillion by
2020, due to an
increase in population
of 7.6 billion people,
13% of which will be
over 60.
The global sales of medicines reached $942 billion
in 2011.
Issues for the Industry
O Between 2012-2018, the “patent cliff" will wipe an estimated $148 billion off pharmaceuticals industry revenues due to many drugs coming out of patents
O Rising cost of R&D, the cost of bringing a molecule to market globally is estimated to be from $800 million to $4 billion.
O On average, out of every 10,000 molecules been developed; only one or two are likely to reach the market.
O Increasing government pressure, with harsher price controls and taxes.
O European Medical Agency (EMA) and the US Food and Drug Administration (USFDA) are focusing on risk management; thereby putting pressures on profitability of pharmaceutical companies.
The Indian Pharmaceutical Industry
O The Indian pharmaceuticals industry has grown from a mere $0.3billion in 1980, to $12 billion in 2012.
O Branded generics dominate the market, making up 70-80% of it.
O The local companies enjoy a dominant position due to their development capabilities and early investment, as from 1970 to 2005, Indian law only recognized process patents and not product patents, which many companies took advantage of.
O The price of drugs is very low, due to intense competition. While India is 10th globally in terms of value, it is 3rd in term of volume of drugs produced.
Indian Pharmaceutical Companies Imports and Exports
0
1
2
3
4
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6
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8
9
US
$/B
n
Year
Imports
Exports
Source: Ministry of Chemicals &
Fertilizers, Department of
The Indian Set-Up
O The Indian pharmaceutical sector is highly fragmented, with more than 20 000 registered companies, with the top 250 companies controlling 70% of the market. These companies can currently meet about 70% of the countries demands for drugs; this is mainly through the Maharashtra and Gujarat regions, which account for 45% of the total number of pharmaceutical manufacturing units in India.
SWOT Analysis Of Indian Pharmaceutical Industry
Investment Comparison
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0
1000
2000
3000
4000
5000
6000
7000
8000
9000
% GDPPer CapitaUS $
Per Capita Spent on Healthcare
% GDP Spent on Healthcare
Source: theguardian.com/news/datablog/2012/jun/30/healthcare-spending-world-country
Private Spending on Healthcare as a % of Total Spending
Growth Factors for Indian Market
O Population Growth
O Socio Economic Changes and Urbanization
O Increasing acceptability of modern medicine
O More affordably drugs
O More accessibility to drugs and medical care
O Cheap production cost
O Government regulations targeting growth and competitive market
O Contract R&D
O Medical Tourism
Key Players Locally
International Players
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