...The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. The Indian pharmaceutical industry has become the third largest producer in the world and is poised to grow into an industry of $ 20 billion in 2015 from the current turnover of $ 12 billion The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970.[5] However, economic liberalization in 90s by the former Prime Minister P.V. Narasimha Rao and the thenFinance Minister, Dr. Manmohan Singh enabled the industry to become what it is today. The lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market, and while they streamed out. Indian companies carved a niche in both the Indian and world markets with their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Although some of the larger companies have taken baby steps towards drug innovation, the industry as a whole has been following this business model until the present. The number of purely Indian pharma companies is fairly low. Indian pharma industry is mainly operated as well as controlled by dominant foreign companies having subsidiaries in India due to availability of cheap labour in India at lowest cost. In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of formulations and bulk drugs. 85% of these...
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...evergreening enables protection of a drugs patent beyond its initial term despite only small, trivial changes to the invention itself. However, what these critics fail to recognize are the benefits of incremental innovations within the pharmaceutical industry. These incremental innovations can produce a reformulated medicine to encourage children’s compliance (more tolerable drug forms), increase a drugs heat-stability so it can be effective in many environments across the globe or even increase the number of dosing options for a particular drug. Critics believe that this use of incremental innovation is purely a strategy for delaying the entry of generics into the marketplace. It must be understood that once the patent’s exclusivity period of the existing medicine is over, any company may produce that particular chemical entity as long as regulatory requirements are met2. Generic drug companies in India have argued that evergreening has directly threatened their ability to produce drugs at a cost that is accessible to poor people. However, as we now know, the generic drug company can produce the original version of the compound (which most likely worked quite well) and poor patients can still have access to first generation drugs. Evergreening can also serve many public health benefits. Earlier in 2013, the FDA announced that they would not allow generic versions of OxyContin to be produced. This is due to the reformulated version of the drug produced by Purdue Pharma L.P. According...
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...any inaccuracy of information contained in this report or for any errors or omissions in its content, regardless of the cause of such inaccuracy, error or omission. Furthermore, to the extent permitted by law, PricewaterhouseCoopers, its members, employees and agents accept no liability and disclaim all responsibility for the consequences of you or anyone else acting, or refraining from acting, in relying upon the information contained in this report or for any decision based on it, or for any consequential, special, incidental or punitive damages to any person or entity for any matter relating to this report even if advised of the possibility of such damages. The member firms of the PricewaterhouseCoopers network (www.pwc. com) provide industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries share their thinking, experience and solutions to develop fresh perspectives and practical advice. A growing healthcare sector Healthcare is one of India’s largest sectors, in terms of revenue and employment, and the sector is expanding rapidly. During the 1990s, Indian healthcare grew at a compound annual rate of 16%. Today the total value of...
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...INDIAN PHARMACEUTICAL INDUSTRY – AN OVERVIEW 1. Overview The Indian Pharma industry is one of the fastest growing sectors with approximately 20,000 manufacturing units. The industry that is highly price sensitive ranks thirteenth in the global pharmaceutical market in value terms and fourth in volume terms. The country has tremendous export potential in the areas like custom synthesis, R&D, clinical trials, and Bioinformatics. The industry produces 60,000 finished medicines and roughly 400 bulk drugs, which are used in formulations with about 20% of the manufacturers in the bulk drugs segment. India has approximately 1% share of global pharma industry, which is worth US$406 billion. This implies that there is a huge market waiting to be unfolded. The figure below explains the evolution of Indian pharmaceutical industry: Figure 1: Progress Of Indian Pharmaceutical Industry Source: Pharmabiz.com (Article by Dr. Laxman Prasad) 2. Industry Structure and Size 2.1 Industry Structure The Indian Pharma industry is highly fragmented and can broadly be classified in to two categories: organized and unorganized sector. Figure 2: Revenues of Organised vs. Unorganised Sector Source: Secondary Research The organized sector contributes about 70% of the total revenues and consists of 260 units in both manufacturing as well as formulation segment. This sector can further be divided into Indian and multinational companies. The unorganized sector is...
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...Pharmaceuticals and Life Sciences Global pharma looks to India: Prospects for growth Table of contents Introduction 03 Background 04 A fast growing economy An expanding pharmaceutical market Government-provided healthcare improving, but private healthcare dominates Domestic market overview 09 Background Consolidation underway, despite challenges Contract manufacturing Vaccines Over the counter market holds significant potential Reaching the untapped rural market Growing Research & Development 15 Overview Clinical trials Biotech and biosimilars on track for growth Other growth areas Bioinformatics 20 Stem cell research Medical devices Global Pharma’s evolving business models and options in India 23 Background Export-oriented business (Contract Research and Manufacturing Services) Licensing Franchising Joint ventures Wholly-owned subsidiaries Practical concerns 27 Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
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...UNIFORM CODE OF PHARMACEUTICAL MARKETING PRACTICES The Indian Pharmaceutical Industry is one of the most rapidly growing science based industries in terms of remarkable capabilities in both the manufacture and technology. India being among one of the five pharmaceutical emerging markets has an average annual growth of 8-9 percent with an approximate worth of $ 4.5 billion. With more new drug launches, new drug applications, phase II clinical trials taking place this year the growth can be expected to be 13-14 percent in the future. Considering the rise in the pharmaceutical sector and to bring about uniformity in the marketing of these drugs, a Code has been introduced by the Department of Pharmaceuticals (DoP), Government of India. This code named as Uniform Code of Pharmaceutical Marketing Practices (UCPMP) was introduced on December 12, 2014 and became effective from January 01, 2015. UCPMP initially set to be a voluntary code for the Pharmaceutical Industries was then decided to be made as statutory Code when DoP was urged by the Organization of Pharmaceutical Producers of India (OPPI). UCPMP is expected to facilitate good marketing practices, increased levels of transparency and accountability across healthcare industry and remove ambiguity on all aspects of marketing by the pharmaceutical industries. The code covers various parameters like the general points to be followed by the industry, claims and comparisons related to other products, textual and audiovisual promotional...
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...Ranbaxy Laboratories Ltd 1. Summary: Indian pharmaceutical industry is estimated at $8 billion in 2013 and had been growing at an average rate of 8–9 %. The industry was highly fragmented with more than 1000 players out of which 30% of market was controlled by top ten companies and the rest of 70% by small companies. The Global pharmaceutical industry was estimated at $ 600 billion in 2013. Indian pharmaceutical industry has become more innovative and enterprising with more investment in R&D especially since the WTO agreement was signed. Indian drug makers command 10 per cent share in the USD 30 billion US generic drug market and also has the highest (over 150) US Foods & Drug Administration (FDA) approved facilities. US accounts for one-fourth of the Indian drug exports. The share of Indian pharma companies in the total approvals for generic drugs called Abbreviated New Drug Application (ANDA) has risen steadily. From 32 per cent in 2009, it went up to 38.5 per cent in 2013. Increasing share of Indian companies in total ANDAs approved by the USFDA can be attributed to increase spending by them for research and development (R&D) activities. As per CMIE’s database, the industry’s R&D expenses to sales ratio jumped to around five per cent in 2012-13 from around three per cent in 2003-04. The export of drugs from India is expected to grow by 4.2 per cent to USD 15.2 billion in 2013-14. Around USD 16.3 billion of drugs are likely to be shipped from the country in 2014-15. This translates...
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...Industry Snapshot The Indian pharmaceutical industry is highly dynamic and offers great opportunities for both domestic and foreign companies. The industry is estimated to have generated revenue worth US$ 13.1 billion in FY 2011, according to a new Research and Market’s report, “Indian Pharma Sector Forecast 2014.” India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets, according to Ikon Marketing Consultant (IMC). Also, Associated Chambers of Commerce and Industry (Assocham) has said it expects the Indian pharmaceutical industry to reach US$ 20 billion by 2015, making it one of the world's top 10 pharmaceuticals markets. India has a strong local manufacturing base and domestic players are developing substantial international presence. Healthcare is also one of the largest service sector industries in India, in terms of revenue and employment. Rising health awareness and increasing government expenditure on healthcare sector is driving growth in the sector. Medical tourism and health insurance are also on a rise, with significant growth in healthcare sector and establishment of large number of hospitals, both public and private. The Indian healthcare industry, estimated at US$ 50 billion, is expected to reach over US$ 75 billion by 2012, and US$ 100 billion by 2015. Talent Challenges While specialised talent is critical for any knowledge industry, it is more so within the pharmaceuticals industry...
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...Tanveer Mohd Ansari-1211151 Contents Introduction .................................................................................................................................................. 3 Global Pharma Industry ............................................................................................................................ 3 Major players of the world pharmaceutical industry ................................................................................... 5 Major Players ............................................................................................................................................ 6 Pfizer Inc................................................................................................................................................ 6 GlaxoSmithKline .................................................................................................................................... 6 Sanofi-Aventis ....................................................................................................................................... 6 Novartis ................................................................................................................................................. 6 Indian Pharma Industry................................................................................................................................. 7 Drivers of the Demand ................................................................
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...Economic Analysis 7 6) Chapter 2: Industry Analysis 9 * Industry Life Cycle * Porters 5 Forces * SWOT * PESTLE * Correlation 7) Chapter 3: Company Analysis 24 * Company Profiles (10 Companies) * Financial Ratio Analysis * DCF Valuation * Valuation Shares 8) Conclusion 74 9) Bibliography 76 RESEARCH OBJECTIVES Research Project Topic: “Analysis and Valuation of the Indian Pharma Sector” The research objectives of this specialization project are: 1) Identifying the key indicators of the Global Pharma Industry 2) Understand and analyze the Indian Pharma Industry and identify the prominent players. 3) To examine the trends in the pharma industry 4) Fundamental and Technical Analyses of the Top 10 pharma companies in India. The main objective of this study is: 1) Valuation of the Top 10 Pharma companies 2) Finding the correct share price of the company 3) Making investment decision of- Buying, Selling or Holding the stocks of the respective pharma company. EXECUTIVE SUMMARY * Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1...
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...state-of-the-art technology are the most important factors for Americans in making a decision to travel abroad for treatment2. The cost-conscious factor and availability of accredited facilities have led to the emergence of several global medical tourism corridors3. Asia leads the medical tourism industry worth billions4. Amongst these corridors of health, India has the second largest number of accredited facilities3. INTRODUCTION: The health care industry within the United States continues to face unprecedented increases in costs, along with the task of providing care to an estimated 33 million uninsured or underinsured Americans, which constitutes about 10.4% of the U.S. population7. The demand for low-cost health care services is driving patients to seek treatment on a globally competitive basis, while balancing important quality of care issues. The trend, known as medical tourism, which refers to traveling to another country for medical care, is on rise8. In the past few years, Asia has taken the lead as one of the most preferred destination for medical value travel9. Forbes reported that medical tourism is growing by 20% per year. The latest estimates put it as a $50 to 65 billion industry with upward of 1.25 million Americans seeking treatment in other countries each year3, for cut-price healthcare. They are doing this in a bid to avoid the astronomical cost of undergoing treatment at home. U.S. HEALTH CARE STATISTICS: In 2013, Nerd Wallet Health analyzed data from the...
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...the largest contributor to this shortfall, with total production of only 99.9mt, a decline in production of nearly 18mt. The rice output in the kharif season amounted to 12mt less than that in 2008. However, this shortfall is expected to be compensated to an extent by the rabi harvest. Wheat production in the rabi season is expected to be almost flat with the previous year’s levels and rice production, currently at 14.7mt, may eventually turn out to be higher than 2008 production. Taking this into consideration, the shortfall in rice production for the year as a whole may be restricted to 11mt. While looking at some of the agricultural products, one finds that India is the largest producer of tea, jute and jute like fiber. India is not only the largest producer but also the largest consumer of tea in the world. India accounts for more than 15% of the global tea trade. Indian tea is exported in various forms, such as tea bags...
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...FDI and the Evolution of Indian Patent Law Web version: August 2007 Authors: Katherine Connor Linton and Nicholas Corrado1 Abstract India has charted its own intellectual property (IP) path over the last 35 years, attempting to foster the growth of a domestic pharmaceutical industry and access to medicine while, more recently, also addressing the requirements of the international IP regime. Multinational companies (MNCs) have responded to India’s movement towards compliance with the W TO intellectual property agreement, TRIPS, by increasing the quantity and quality of foreign direct investment (FDI) in the areas of pharmaceutical research and development (R&D) and manufacturing. By contrast, MNCs have adopted a more cautious attitude toward the patenting and commercialization of new pharmaceutical products in India, waiting to see how Indian courts and patent offices interpret the new laws, and awaiting the enactment of longdebated data protection legislation. The ultimate success of the Indian “calibrated approach” to fostering the domestic industry and access to medicine while also addressing international IP requirements remains to be seen. 1 Katherine Connor Linton (katherine.linton@usitc.gov) is the International Trade Analyst for Intellectual Property and Nicholas Corrado was a law student intern in the Office of Industries of the U.S. International Trade Commission (USITC). The views expressed are those of Ms. Linton and responsibility for any errors remains with...
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...7/1/2011 Contents Introduction 2 What is clinical research? 2 The state of health in India 2 Clinical Research Market in India 3 Factors that Continue to Make India Attractive for Future Clinical Trial Outsourcing: 4 Challenges for the Indian Clinical Research Industry 6 Cinical research profession 7 Conclusion 8 Introduction Successful persons in business are noted to be blessed with innovation, perseverance and a broad vision. Its critical to have the “big picture” in mind while we want to position and well-establish the smallest things, after all the intensity of effect that something can cause cannot be under-estimated. A tiny sim-card that provides enormous data and communication coverage, an atom bomb which caused ruthless destruction in Japan, a small silicon chip that provides powerful processing speed in our computers, a tablet of aspirin that at times saves life; none can be ignored. It is important, thus, to identify the patterns, the trends, the relationships between smaller items in the “big picture” to channelize our efforts towards a unique direction. Behind every innovation lies a unique idea, and behind every successful idea lies the large audience it will cater to. Clinical research is one such area that can help a large population with some of their grave needs through small yet life-changing discoveries. What is clinical research? As per wikipedia.com, “Clinical research is a branch of medical science that determines the...
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...Indian Pharma Industry – an overview April 13, 2012 The demand for pharmaceutical products in India is significant and is driven by low drug penetration, rising middle-class & disposable income, increased government & private spending on healthcare infrastructure, increasing medical insurance penetration etc. The Indian pharmaceutical industry is growing at about 8 to 9 percent annually according to “A Brief Report Pharmaceutical Industry in India,” published in January 2011. The Pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are approximately 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). I. Current Scenario: India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, Indiaranks third in terms of manufacturing pharma products by volume. According to McKinsey, the Pharmaceutical Market is ranked 14th in the world. By 2015 it is expected to reach top 10 in the world beating Brazil, Mexico, South Korea and Turkey. More importantly, the incremental market growth of US$ 14billion over the next decade is likely to be the third largest among all markets. The US and China are expected to add US$ 200bn and US$ 23bn respectively. McKinsey & Company’s report, “India Pharma 2020:...
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