indian pharmaceutical industry by big pharma jobs

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Indian Pharmaceutical Industry Big Pharma Jobs (Division: Big Ideas HR Consulting Pvt. Ltd.)

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Page 1: Indian pharmaceutical industry By Big Pharma Jobs

Indian Pharmaceutical Industry

Big Pharma Jobs(Division: Big Ideas HR Consulting Pvt. Ltd.)

Page 2: Indian pharmaceutical industry By Big Pharma Jobs

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.

Page 3: Indian pharmaceutical industry By Big Pharma Jobs

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.

Page 4: Indian pharmaceutical industry By Big Pharma Jobs

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.

Page 5: Indian pharmaceutical industry By Big Pharma Jobs

Indian Pharmaceutical Companies Imports and Exports

0

1

2

3

4

5

6

7

8

9

US

$/B

n

Year

Imports

Exports

Source: Ministry of Chemicals &

Fertilizers, Department of

Page 6: Indian pharmaceutical industry By Big Pharma Jobs

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.

Page 7: Indian pharmaceutical industry By Big Pharma Jobs

SWOT Analysis Of Indian Pharmaceutical Industry

Page 8: Indian pharmaceutical industry By Big Pharma Jobs

Investment Comparison

132

4.1

0

2

4

6

8

10

12

14

16

18

20

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

Page 9: Indian pharmaceutical industry By Big Pharma Jobs

Private Spending on Healthcare as a % of Total Spending

Page 10: Indian pharmaceutical industry By Big Pharma Jobs

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

Page 11: Indian pharmaceutical industry By Big Pharma Jobs

Key Players Locally

Page 12: Indian pharmaceutical industry By Big Pharma Jobs

International Players