Introduction The Indian pharmaceutical industry is now leading India, AOS science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. The Indian pharmaceutical industry has consistently risen to 9th 5 percent CAGR over the last five years and is currently estimated to be worth slightly more than $ 5. Expected to reach 7 billion U.S. dollars and 9. 48 billion marks in 2010. As the Indian pharmaceutical industry is growing and getting more and more players gear up to the global blockbuster on the Indian market, the competition is definitely going to heat up.
Many of these multinational companies are in collaboration with Indian companies, which often offer as much as 30% to 50% savings in total drug research and development costs. Recent amendments to patent laws of India and India have a more attractive drug discovery target. In 2005, India amended its patent laws in order to comply with the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), an international treaty commission minimum standards for trade and the protection of intellectual property. These changes allowed for the first time in India of patent protection for pharmaceutical products. The previous law provided patent protection only for the process of production of the drug, not the drug itself Companies in India offer two types of opportunities for drug discovery and development: outsourcing and genuine cooperation.
The outsourcing model involves an alliance between one or more companies to discrete tasks or specific operations and processes previously done in-house. In this model, the company reserves soliciting research in general, the control of the technology and related assets, including intellectual property rights. More recently, a growing number of multinational companies in more collaborations with Indian pharmaceutical companies and contract research organizations have entered, far beyond task-driven outsourcing. These transactions are more complex intellectual property.
A poll recently by Price Waterhouse Coopers report says that India could be one of the top 10 global pharmaceutical markets by 2020. Thus, any pharmaceutical companies, research and development can be done in India is likely to patent its technology in India, and choose therefore need to be familiar with Indian patentability standards1. Indian pharmaceutical industry present scenario India currently provides nearly $ 6 billion of the $ 550 billion global pharmaceutical industry, but the trend is growing at 10 percent per year, compared with 7 percent annual growth for the world market as a whole.
Even during the Indian sector, only 8 percent of the worldwide industry as a whole is by volume and was thus fourth in the world makes this 13 per cent by value and its drug exports have grown 30 percent per year. Those Äúorganized, Au sector of the pharmaceutical industry in India consists of 250 and 300 businesses, representing 70 percent of the products on the market account, with the top 10 companies 30 percent. However, if the entire industry is estimated at nearly 20,000 companies, some of which are extremely low. About 75 percent of the demand for drugs in India is met by local production. According to the German Chemicals Association, in 2005, both in India Top 10 pharmaceutical company Ranbaxy, Cipla, Dr. Reddy’s Laboratories, lupine, Nicholas Piramal, Aurobindo Pharma, Cadila Pharmaceuticals, Sun Pharmaceuticals, Wockhardt Ltd. and Aventis Pharma. India’s potential attempt to further boost its already leading position in global generics production, as well as an offshore location for multinational drug companies to curb the rising cost of the manufacturing process, R & D and other support services stop provides an opportunity it is worth an estimated 48 billion U.S. dollars in 20082nd The pharmaceutical industry in India phenomenal advances made in the last 10 years. With over 8 billion U.S. dollars domestically and another $ 5 billion in exports in 2006, which has double-digit growth both recorded it to his place in the sun. She has also started its global presence and our more than $ 2 5 billion worth of acquisitions abroad were made in the past two years. Undoubtedly, the most important turning points in the history of the Indian pharmaceutical industry is the place of the product patent law in 2005.
This has doubled, leading many pharmaceutical majors almost their R & D investment, and it is probable that runs New Chemical Entities (NCE) from the Indian R & D labs start in a few years. But before we begin to pat ourselves on the back for these commendable achievements, we must not forget that India contributes less than two percent of global pharmaceutical sales of around 650 billion U.S. dollars. While McKinsey predicts a sale of $ 20 billion by the year 2015, we need to identify key strategic driver of growth and to use this leverage to accelerate the tempo. While stable economy, with eight to nine percent GDP growth will certainly be right environment for businesses, there are other internal factors that act as catalysts.
These are the intellectual property rights (IPR), government pricing policies, changes in legislation, scientific and technical personnel and capital funding3. The Indian pharmaceutical industry is currently the largest among developing countries and one of the flagship sectors of the Indian economy. Indian pharmaceutical companies continue to move to the center of the global pharmaceutical market. It is a worldwide trend of structural development in the fields of pharmaceuticals and Indian enterprises play a key role in this context, from his superior biotech and drug synthesis skills, high quality, vertically integrated manufacturing assets to distinguish business models and significant cost savings driven. The pharmaceutical industry in India has emerged as a renowned manufacturer of medical products that are currently meeting almost 95% of the domestic health care needs. From modest beginnings in 1970, today the total Indian pharmaceutical sector is valued at U.S. $ 8 8 billion with a growth rate of 8%.
The Indian pharmaceutical industry is a net exporter of bulk and generic products and is one of the 17th in the world in terms of bulk drugs and formulation exports. In 2004-05 was in the net pharmaceutical exports more than U.S. $ 3. 75 billion accounted for formulations to 55%, while the remaining 45% came from bulk drugs. U.S., Germany, Russia, Britain and China are the top five export markets for the Indian pharmaceutical industry sector4. Indian Pharmaceutical Industry: Scenario-2020 The pharmaceutical industry in India is expected to grow from $ 5. 5 billion now to $ 25 billion in 2010 and $ 75 billion U.S. dollars by 2020. By 2020, the global integration of most industries in the global economy would be much more pronounced, and the pharmaceutical industry is no exception. In fact, the Indian pharmaceutical industry, currently has close links with the global pharmaceutical market, are even more integrated. Overall, the pharmaceutical market is in transition is run by changing the demand structure, realignment of supply chains and global regulatory changes.
To predict the state of the Indian pharmaceutical market in 2020, it is useful to the current global environment of the pharmaceutical market and its main trends and analysis of the impact that these factors will have on the global as well as on the domestic pharma understand the market. Key trends in the global pharmaceutical industry have been declining R & D productivity, increasing use of generic drugs and the increase outsourcing5. India is expected that 30% of the contract in the world of research in the next 10-15 years, host, driven by the attractions of low costs and high quality standards, says the India Brand Equity Foundation IBEF. The IBEF cites a McKinsey forecast for the value of the pharmaceutical clinical trial outsourcing to India at $ 1 23 billion in 2010. This would be projected 7% of the total world market by Biopharm put at $ 18. 5 billion in 2010. India offers a huge cost advantage in clinical trials in comparison with Western countries.
A multinational company might move R & D in India to save 30-50%, says IBEF. Indian companies on the conduct of clinical trials, less than one tenth of U.S. costs. The U.S. National Institutes of Health study registry (www. clinical trials. Gov.) lists 272 trials actively recruiting patients in the country, of which 60% of Phase III. There currently are 70 CROs in India, according Biopharm, AOS Contract Research Annual Review 2006 – a figure that is projected to grow in the coming years. Several Western CROs have formed, including Aptuit (U.S.), Synergy Research Group (Russia) and ethica Clinical Research (Canada), alliances or joint ventures with their Indian counterparts in recent months.
Investment has also flowed in the opposite direction, with U.S. CROs Radiant Research and Taractec both groups of Indian purchase this year6. India is expected to be in the league of the top 10 pharmaceutical markets by 2020. According to the Government of India 06-07 in the annual report of the Indian pharmaceutical industry is worth about 12 billion U.S. dollars (more than 55,000 Rs crores) already includes the 4 U.S. dollars. 5 billion in the export of drugs, pharmaceuticals and fine chemicals. The pharmaceutical industry needs more R & D productivity and a better focus to exploit the enormous opportunities available. India, with its inherent competitive advantages and cost-effective production capacity, has now become one of the most popular destinations for Contract Research and Manufacturing Services (CramS). According to the KPMG report, India holds a huge potential for the $ 20 billion CramS businesses tap into the expected to reach 31 billion U.S. dollars by 2010. India, with its intrinsic competitive advantages remains as one of the most preferred outsourcing destinations and is now playing an important role in the production and drug development value chain of various companies7 innovator.
The Indian pharmaceutical industry is entering a period checked in the value chain components and revised in order to realize optimal value. While the cost increases of the companies that are customers are demanding more innovative pharmaceutical products at more competitive prices. The change in the patent regime has also announced a change in industry dynamics. Are on the one hand, patents on blockbuster drugs expire, and on the other hand, there are not enough drugs in the pipeline. The changing dynamics of the industry both nationally and internationally, has forced the pharmaceutical players to rethink their traditional business strategies. Conclusion The Indian market has some unique advantages. India has a 60-year-old vibrant democracy. It has an educated work force and English is the language of business.
It has a solid legal framework and strong financial markets. More than 9,000 companies are publicly listed. Professional services are easily accessible. There is already an established international industry and business. It has a good network of world-class educational institutions and established strengths in information technology. The country is now committed to an open economy and globalization. Above all, it has about 200 million middle class market that is growing steadily. Over time, the international pharmaceutical industry has been finding great opportunities in India. The Indian pharmaceutical players in the future continues to look forward with confidence. There are enormous opportunities for pharmaceutical players on both the domestic as well as at the global level, but chances are with challenges to be overcome, it is necessary to achieve sustainable growth in the future. The future will be very promising many more milestones in the journey of the Indian pharmaceutical industry.
References 1) http://www. dddmag. com / destination-India. aspx
2) http://www. KPMG. de/library/brochures_surveys/15646. asp
3) http://www. Nanowerk. com / news / newsid = 4226th php
To drive 4) Jayashri Kulkarni, sustainable growth strategies and leadership, pharmaceutical Bio World in January 2007, p. 72-80.
5) http://www. democraticunderground. com / discuss / duboard. php? view_all az = & address = 103×334073
6) http://www. prlog. org/10035055-india-to-host-30-of-global-clinical-research-by-2020. html
7) http://www. silobreaker. com / Document Reader. aspx? Item = 5_817288715
