HISTORY » THE ORIGIN OF MEDICINES » MEDICINES OF ANCIENT CIVILISATION

Medicinal preparations made from plants, animals or minerals.

Egyptians treated constipation with senna pods and caster oil.

Plants containing digital like compounds (cardiac stimulants) used to treat various ailments.

EVOLUTION OF PHARMACEUTICAL INDUSTRY

1901 :- BENGAL CHEMICALS AND PHARMA WORKS (CALCUTTA)

Advance in medical science and technology.UrbanizationPopulation GrowthMass ProductionAdvertising and mass marketing.

1902

1906

government first required to secure licenses

Pure Food and Drug Act of was passed.

:-

:-

Introduction to Indianpharmaceutical industry

Two percent of the world's pharmaceutical market.

Estimated market value of about US $8 billion. 4th rank in terms of total pharmaceutical

production. 13th in terms of value. Growing at an average rate of 7.2 %. Expected to grow to US $ 12 billion by 2010.

INDIAN PHARMACEUTICAL MARKET

DOMESTIC MARKET OVERSEAS MARKET Ethical drugs

Over the counter (OTC) drugs

Active pharmaceutical ingredient (API) market

The Export generic drugs and APIs

Contracted Research and Manufacturing Services (CRAMS)

KEY CHARACTERISTICS OF INDIAN PHARMA SECTOR

Pharmaceutical Regulatory Bodies in India

National Pharmaceutical Pricing Authority (NPPA) Central Drugs Standard and Control

Organization (CDSCO) - Department of Chemicals &

Petrochemicals (DCP)

Major Players Ranbaxy Laboratories

Dr Reddy’s Laboratories Cipla

Sun Pharma Industries Lupin Labs

(Rs 25,196.48 crore)

(Rs 4,162.25 crore)

(Rs 3,763.72 crore)

(Rs 2,463.59 crore)

(Rs 2,215.52 crore)

FACTORS LEADING TO THE GROWTH OF PHARAMACEUTICAL INDUSTRY Economic Growth

Population growth

Increase in chronic diseases

Healthcare infrastructure growth

Growth of health insurance

Low manufacturing costs

CURRENT SCENARIO

THE GROWTH SCENARIO

Role of Pharmaceutical Industry in IndiaGDP-India Advantage

Pharmaceutical Industry in India-Growth

Role of Pharmaceutical Industry in India GDP

Facts

Investment in the sector

FDI Inflow in the sector

Exports in financial years

Effect of recession

Recession Proof Business.career in the pharmaceutical industry as evergreen.fastest growing manufacturing industries

WHAT INDIA CAN OFFER TO WORLD MARKET

Contract manufacturing for Global Supply of APIs

Quality Generic Products

Process Technologies

Pharmaceutical Manufacturing Equipment

Alternate Medicines - Ayurvedic & Herbal

CHALLENGES AND OUTLOOK

• Government policies regarding range of price increase

• Increase in prices of raw materials

• Increasing competition

TARGET COMPANY COUNTRY TARGET ACQUIRER PRICE IN CRORES

Natrol US Plethico Pharma US $ 80.7mnBell, Sons and

Co(Druggist)LtdUK Marksans Pharma Ltd US$ 20-30 mn

Axicorp GmbH Germany Biocon Euro 30mn

Jamnes Robinson UK Vivemed Laboratories US$ 30 mnDowpharma UK Dr. Reddy’s Laboratories

Ltd.US $ 30 mn

Jet Generici Srl US Dr. Reddy’s Laboratories Ltd

Euro 1.5 mn

DRAXIS Health Canada Jubilant Organosys US$255 mnAlcon US Novartis AG US$11 bn

BASF’s Pharamectical

US Dr. Reddy’s Laboratories Ltd

US$40mn

SWOT ANALYSISSTRENGHTS

•Cost Competitiveness •Strong manufacturing base •Established network of laboratories and R&D infrastructure •Highly trained scientists•Strong marketing and distribution network •Rich biodiversity •Largest number of US FDA approved plants

WEAKNESSES

•Low investments in innovative R&D •Lack of resources to compete with MNCs•Inadequate regulatory standards •Production of spurious and low quality drugs spoils the image of the industry in international arena

•Significant export potential •Licensing deals with MNCs•Marketing alliances to sell MNC products in Indian market •Contract manufacturing agreements with the MNCs •Potential for developing India as a centre for international clinical trials

Opportunities Threats•Product patent regime poses serious challenge unless it invests in R&D •DPCO puts unrealistic ceilings on product prices & profitability & prevents in generating investible surpluses •Export effort hampered by procedural hurdles & non tariff barriers imposed abroad •Lowering of tariff protection

RECOMMENDATION

CORE COMPETENCIES

RIGHT PRODUCT-MIX

MERGER AND ACQUISITION

REFOCUS AND INVEST HEAVILY IN R&D. 

ADVANCES IN BIOTECHNOLOGY AND INFORMATION TECHNOLOGY

FINDINGS AND CONCLUSION Between 2007-08 and 2011-12 expected CAGR might be 16%.

Export market is growing much faster than the domestic market.

Future will see strong growth in the specialty branded generics and patented drug segments.

Drugs for diabetes and cardiovascular diseases are expected to see the fastest growth among all therapy areas during 2007-2011.

Vast opportunity exists for the organized market.

Cipla, Ranbaxy and GlaxoSmithKline are controlling the top three positions in the Indian pharmaceutical market.

PHARMA DIARY…..2009,June 30 – APOLLO HOSPITALS het rises 16% to Rs.

118 Crore.2009, Aug 26 – FORTIS took over WOCKHARDT.2009, Sept 2 – RANBAXY gets TAMIFLU nod.2009, Sept 8 – SUVEN gets MILESTONE PAYMENT from

ELI LILLY.2009, Sept 11 – Is GLAXO circling Dr. REDDY.2009, Sept 11 – OGLEMILAST is not dead, not yet, says

GLENMARK chief.2009, Sept 14 – WOCKHARDT offers 65% haircut to FCCB

HOLDERS.2009, Sept 14 – REDDY’S gets US FDA nod, launches

STARLIX CLONE.

• 2009, Sept 18 – GLAXO seen in talks to pick up 5% in Dr. REDDY.

• 2009, Sept 18 - NATCO PHARMA launches anti-swine flu drug NATFLU

• 2009, Sept 20 - SUN PHARMA to file 30 applications for generic drugs in US

•

Continued…..