OVERVIEW OF INDIAN PAHARMACEUTICAL INDUSTRY (IPI)

Transcript:OVERVIEW OF INDIAN PAHARMACEUTICAL INDUSTRY (IPI):
OVERVIEW OF INDIAN PAHARMACEUTICAL INDUSTRY (IPI) AND AN INTRODUCTION OF ITS EVOLUATION IPI is the lifeline of Indian Health Sector. The study and historical background of IPI would show that it achieved a big success. To day in the era of globalization its success is remarkable. It has been able to maintain a growth rate of 7% during last few years. Presently IPI is exposed to meet the challenge of new opportunity and also some risk as well. The playing field of domestic pharmaceutical companies changed completely with the start of Product - patent regime from January, 2005. 1 The factors responsible for the change of dynamic in regulated market of USA and Europe are : Higher health cost. Increasing competition for generics. Patent expiration of block buster drugs Increasing R & D costs. These factors translate into significant growth opportunity for IPI (a) In the form of exports of generics to the regulated markets. 2 (b) Contract manufacturing / research for global pharmaceutical companies. Further, off patent of drugs in the regulated market is estimated at US $ 70-80 billion in next 5 yrs. For IPI this is a huge opportunity in next 5 yrs. to establish their presence in the markets Six growth segments could identified as a growth path for IPI. The segments identified are : (a) Bulk drugs (b) Domestic formulations (c) Export to non regulated market (d) Export to regulated market (e) NCE (New Chemical Entity) research and (f) clinical research. 3 The recognition of Product patent has provided more confidence and protection of global pharmaceutical industries. Utilizing the large pool of skilled manpower and lower cost of product the IPI can take advantage once it adopts various regulatory standards. In order to ensure long term sustainable growth the Indian Pharmaceutical companies have invested in New Clinical Entity (NCE) research and are looking for global partners for perusing Collaborative research. 4 The availability of large patient base, skilled manpower and lower costs for carrying out clinical trails has made India a favorable destination for R&D out-sourcing. In addition diverse disease profile and abundance of patients, India provides better ground for clinical trails. India has leveraged this advantage to attract clinical trails, process out sourced by the companies involved in innovation. 5 Evolution of India Pharma Industry The foundation of Indian Pharmaceutical Industry was laid down when Bengal Chemical & Pharmaceutical Works ltd. was established in