India’s Pharmaceutical Trade

India’s Pharmaceutical Trade

Group 7Section C

1301-309 Amanpreet Kaur1301-036 Aseem Shandilya1301-156 Prateek Kumar1301-319 Anuj Kulkarni1301-412 Shubham Tandon1302-049 Erri Anvesh Reddy1302-062 Harshvardhan Singh

Pharmaceutical Industry in India: A Snapshot

Commodity 2013-2014 ($USD) %Share 2014-2015(Apr-

Sep) ($USD) %Share

PHARMACEUTICAL PRODUCTS 11,140.50 3.5434 5,915.72 3.6923

India's Total Export 3,14,405.30 1,60,215.92

Commodity 2013-2014 ($USD) %Share 2014-2015(Apr-

Sep) ($USD) %Share

PHARMACEUTICAL PRODUCTS 1,553.62 0.3451 788.35 0.3371

India's Total Import 4,50,199.79 2,33,842.44

Source: Department of Commerce http://commerce.nic.in/eidb/Default.asp

• The Indian pharmaceutical industry stands at the third position in terms of volume and 10th in terms of value. (Source: IBEF)

• FDI in Pharmaceuticals is 100%

Indian Pharmaceutical Market Segments by Size

• Largest exporter of formulations in terms of volume, with 14 per

cent market share and 12thin terms of export value

Trade between India & ChinaIMPORT EXPORT


Non Tariff Barriers in Pharmaceutical Industry

• Intellectual Property Rights Counterfeiting cases had risen sharply in china Laws are weak

• Protectionism• Government gives export subsidies and tax benefits to its domestic firm to increase the exports and

production • Language

• Communication & Documentation in Chinese• Obtaining market information is difficult

• Registration• Application for registration is often delayed • Registration charges are quite high • Example- Clarathromycine by India-Swift took 2 years for registration

Major Step Taken• MOU’S (MEMORANDUM OF UNDERSTANDING) ON

PHARMACEUTICALS (2013) Indian pharmaceutical export promotion council of India and china chamber of commerce for export and import of medicine and health care products

Recommendation

• India and China should talk about notorious registration system • IPR laws must be made more stringent

India’s pharmaceutical trade with AustraliaS.No. \Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

1 Values in US$ Million

67.01 84.96 128.31 144.85 173.61

2 %Growth 26.78 51.03 12.89 19.86

3 Total export of commodity

5,191.18 6,676.43 8,483.46 10,062.70 11,140.50

4 %Growth 28.61 27.07 18.62 10.71

5 %Share of country (1 of 3)

1.29 1.27 1.51 1.44 1.56

6 Total export to country

1,384.96 1,713.02 2,476.84 2,348.65 2,300.28

7 %Growth 23.69 44.59 -5.18 -2.06

8 %Share of commodity (1 of 6)

4.84 4.96 5.18 6.17 7.55

Export Data


India’s pharma trade with AustraliaImport Data

S.No. \Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014


5.44 7.73 10.4 10.64 11.32

2 %Growth 42.16 34.43 2.38 6.32

3 Total Import of commodity

1,097.93 1,204.81 1,685.52 1,747.65 1,553.62

4 %Growth 9.73 39.9 3.69 -11.1

5 %Share of country (1 of 3)

0.5 0.64 0.62 0.61 0.73

6 Total Import to country

12,407.37 10,789.00 15,578.52 13,085.70 9,822.52

7 %Growth -13.04 44.39 -16 -24.94

8 %Share of commodity (1 of 6)

0.04 0.07 0.07 0.08 0.12


India-Australia Pharma Trade• Australian Pharmaceuticals Industry is small in the context of global

demand• The Pharmaceutical Benefits Scheme (PBS) is central to the delivery of

medicines to all Australians• While the PBS allows for universal access to prescription products, the size

of the population means that sales are small.• Australia's population represents around 0.3 per cent of the world yet

consumes around one per cent of total global pharmaceuticals sales• In 2009 Australia was the 12th largest pharmaceuticals market by sales,

while being ranked 55th on population.• High regulatory and compliance standards act as disincentives in Australia The ‘red tape burden’ and associated additional costs that pharmaceutical

companies face in Australia must be acknowledged and addressed.

• Australia’s legislation is consistent with the TRIPS framework and the IP regime for pharmaceutical patents is in line with those operating in other developed markets

India’s pharmaceutical trade with JapanS.No. Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014


8.54 13.8 47.6 66.96 56.71

2 %Growth 61.47 245.03 40.66 -15.313 Total export

of commodity5,191.18 6,676.43 8,483.46 10,062.70 11,140.50

4 %Growth 28.61 27.07 18.62 10.715 %Share of

country0.16 0.21 0.56 0.67 0.51


3,629.54 5,091.24 6,328.54 6,100.06 6,814.07

7 %Growth 40.27 24.3 -3.61 11.718 %Share of

commodity0.24 0.27 0.75 1.1 0.83

Export Data


India’s pharmaceutical trade with JapanImport Data

S.No. Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014


14.13 19.18 21.63 20.24 11.97

2 %Growth 35.74 12.76 -6.42 -40.863 Total Import

of commodity1,097.93 1,204.81 1,685.52 1,747.65 1,553.62

4 %Growth 9.73 39.9 3.69 -11.15 %Share of

country1.29 1.59 1.28 1.16 0.77


6,734.18 8,632.03 11,999.43 12,412.29 9,480.75

7 %Growth 28.18 39.01 3.44 -23.628 %Share of

commodity0.21 0.22 0.18 0.16 0.13


India-Japan Pharma Trade• Japan is the second largest pharma market with over $120 billion turnover• In Japan, generics constitute only 11 percent• Increased health insurance burden has propelled the government to promote the adoption of

generic medicines in the market• DPC hospitals are managed under a `fixed-rate' payment reimbursement system providing

incentives to use generics• Generics market in Japan stands at US$ 3 billion growing at 8% in a total market of 120 billion• India’s Commerce Ministry has set up ‘India-Japan Pharma Alliance’ (IJPA) in Japan under the

aegis of Pharmexcil, which was co-founded by IDMA• Indian companies, such as Lupin Pharma, Orchid Pharma, Dr Reddy's Laboratories, Aurobindo

Pharma, Neuland Labs and Zydus Cadilla, have forayed into the Japanese market• APIs are the main export component since Japan requires bioequivalence test to be conducted in

Japan itself• Under the Cepa, signed in February 2011, Japan accords national treatment to Indian drug makers

vis-à-vis its domestic manufacturers but does not recognise pharmaceutical products exported by India to that market under a preferential tariff regime in terms of standards and quality

Pharmaceutical Exports-RussiaS.No. \Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

1 Values in US$

Million

258.96 431.93 401.1 562.46 535.89

2 %Growth 66.79 -7.14 40.23 -4.723 Total

export of commodity

5,191.18 6,676.43 8,483.46 10,062.70 11,140.50

4 %Growth 28.61 27.07 18.62 10.715 %Share of

country (1 of 3)

4.99 6.47 4.73 5.59 4.81


980.69 1,689.43 1,778.27 2,295.68 2,121.26

7 %Growth 72.27 5.26 29.1 -7.68 %Share of

commodity (1 of 6)

26.41 25.57 22.56 24.5 25.26

Pharmaceutical Imports-RussiaS.No. \Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014


0.6 0.39 2.56 0.39 0.43

2 %Growth -36.12 562.52 -84.59 8.573 Total Import

of commodity

1,097.93 1,204.81 1,685.52 1,747.65 1,553.62

4 %Growth 9.73 39.9 3.69 -11.15 %Share of

country (1 of 3)

0.06 0.03 0.15 0.02 0.03


3,566.79 3,600.02 4,764.31 4,231.56 3,894.40

7 %Growth 0.93 32.34 -11.18 -7.978 %Share of

commodity (1 of 6)

0.02 0.01 0.05 0.01 0.01

S.No. Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-20141 Values in

US$ Million269.43 287.82 354.51 383.18 400.8

2 %Growth 6.82 23.17 8.09 4.6

3 Total export of commodity

5,191.18 6,676.43 8,483.46 10,062.70 11,140.50

4 %Growth 28.61 27.07 18.62 10.71

5 %Share of country (1 of

3)

5.19 4.31 4.18 3.81 3.6


6,221.39 7,284.96 8,589.93 8,612.54 9,779.07

7 %Growth 17.1 17.91 0.26 13.54

8 %Share of commodity (1

of 6)

4.33 3.95 4.13 4.45 4.1

India’s pharmaceutical trade with UKExport Data


S.No. Year 2009-2010 2010-2011 2011-2012 2012-2013 2013-20141 Values in US$

Million159.2 152.65 202.59 249.59 271.28

2 %Growth -4.12 32.72 23.2 8.69

3 Total Import of commodity

1,097.93 1,204.81 1,685.52 1,747.65 1,553.62

4 %Growth 9.73 39.9 3.69 -11.1

5 %Share of country (1 of

3)

14.5 12.67 12.02 14.28 17.46


16,973.68 20,050.72 23,454.92 25,204.73 22,505.08

7 %Growth 18.13 16.98 7.46 -10.71

8 %Share of commodity (1

of 6)

0.94 0.76 0.86 0.99 1.21

India’s pharmaceutical trade with UKImport Data


• In 2013, the pharmaceutical sector’s contribution to the balance of trade was the third greatest of 9 major industrial sectors (£2.8 billion)• Rank 10th in global pharmaceutical top markets• Two of the world’s top 10 Pharmaceutical companies,

GlaxoSmithKline (GSK) and AstraZeneca (AZ) based out of UK• Two of the world’s top 10 Pharmaceutical companies,

GlaxoSmithKline (GSK) and AstraZeneca (AZ) based out of UK

Key Issues• Decreasing employment in Pharmaceutical Industry – From 73000 in 2012 to 70000 in 2013• Decreasing expenditure in R&D – Decline by £700 million last year• Declining market share of products launched in last five years as compared to other

developed markets• Parallel Trade in drugs

Expenditure in R&D Market Share of Product Launches

Country Analysis MatrixCOUNTRIES FACTOR JAPAN UK USA CHINA AUSTRALI

A RUSSIA

WEIGHTS X1 FX1 X2 FX2 X3 FX3 X4 FX4 X5 FX5 X6 FX6RISKS

POLITICAL STABILITY 6 4 24 2 12 3 18 6 36 1 6 5 30 CORRUPTION 8 3 24 2 16 4 32 5 40 1 8 6 48

FINANCIAL & ECONOMIC FOREIGN EXCHANGE 7 6 42 1 7 2 14 4 28 3 21 5 35

GDP /GNP 6 3 18 4 24 1 6 2 12 6 36 5 30 GOVERNMENT HEALTH

EXPENDITURE/ INFRASTRUCTURE

5 4 20 5 25 6 30 1 5 3 15 2 10

INFLATION 6 5 30 1 6 2 12 4 24 3 18 6 36

DEMOGRAPHIC TOTAL POPULATION 6 5 30 4 24 2 12 1 6 6 36 3 18

AGEING POPULATION 6 1 6 3 18 4 24 6 36 2 12 5 30TOTAL 50 31 194 22 132 24 148 29 187 25 152 37 237

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India’s Pharmaceutical Trade