Pharmaceutical industry

Topics: Pharmaceutical industry, Pharmacology, Generic drug Pages: 5 (2508 words) Published: March 5, 2015
Pharmaceutical industry in India
From Wikipedia, the free encyclopedia
The Pharmaceutical industry in India is the world's third-largest in terms of volume.[1] According to Department of Pharmaceuticals of the Indian Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion.[2] While the domestic market was worth US$12.26 billion. The industry holds a market share of $14 billion in the United States. [3] According to India Brand Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between 2012-16.[citation needed] India is now among the top five pharmaceutical emerging markets of the world.[citation needed] Exports of pharmaceuticals products from India increased from US$6.23 billion in 2006–07 to US$8.7 billion in 2008–09 a combined annual growth rate of 21.25%.[2] According toPricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion.[4] 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] This patent act removed composition patents from food and drugs, and though it kept process patents, these were shortened to a period of five to seven years. 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.[6] India's biopharmaceutical industry clocked a 17 percent growth with revenues of Rs. 137 billion ($3 billion) in the 2009–10 financial year over the previous fiscal. Bio-pharma was the biggest contributor generating 60 percent of the industry's growth at Rs. 88.29 billion, followed by bio-services at Rs. 26.39 billion and bio-agri at Rs. 19.36 billion.[7] In 2013, there were 4,655 pharmaceutical manufacturing plants in all of India, employing over 345 thousand workers.[8] Contents

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1 History
2 Patent protection
3 Product development
4 Small and medium enterprises
5 Challenges
6 Pharmaceuticals and biotechnology
7 Comparison with the American biotechnology industry
8 Biotechnology industry and the IT industry
9 Government support for biotechnology
10 Foreign investment in biotechnology
11 Challenges in biotechnology
12 See also
13 Notes and references
14 External links
History[edit]
The number of purely Indian pharma companies is fairly less. Indian pharma industry is mainly operated as well as controlled by dominant foreign companies having subsidiaries in India due to availability of cheap labor 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 formulations were sold in India while over 60% of the bulk drugs were exported, mostly to the United States and Russia. Most of the players in the market are small-to-medium enterprises; 250 of the largest companies control 70% of the Indian market.[9] [10]Thanks to the 1970 Patent Act, multinationals represent only 35% of the market, down from 70% thirty years ago.[11][12] Most pharmaceutical companies operating in India, even the multinationals, employ Indians almost exclusively from the lowest ranks to high level management. Homegrown pharmaceuticals, like many other businesses in India, are often a mix of public and private enterprise. In terms of the global market, India currently holds a modest 1–2% share, but it has been growing at approximately 10% per year....
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