Abstract
Indian pharmaceutical industry is undergoing fast paced changes. The Indian
Generics market is witnessing rapid growth opening up immense opportunities
for firms. This is further triggered by the fact that generics worth over $40
billion are going off patent in the coming few years which is close to 15% of
the total prescription market of the US. The Indian pharmaceutical companies
have been doing extremely well in developed markets such as US and Europe,
notable among these being Ranbaxy, Dr. Reddy' s Labs, Wockhardt, Cipla,
Nicholas Piramal and Lupin. The companies have their strategies in place to
leverage opportunities and appropriate values existing in formulations, bulk
drugs, generics, Novel Drug Delivery Systems, New Chemical Entities,
Biotechnology etc. The industry ranks fourth globally in terms of volume and
in terms of value, it is ranked thirteenth. The industry has thrived so far on
reverse engineering skills exploiting the lack of process patent in the
country. This has resulted in the Indian pharmaceutical players offering their
products at some of the lowest prices in the world. The quality of the
products is reflected in the fact that India has the highest number of
manufacturing plants approved by US FDA, which is next only to that in the US.
Multinational companies have traditionally dominated the industry, which is
another trend seeing a reversal. Currently, it is the Indian companies which
are dominating the marketplace with the local players dominating a number of
key therapeutic segments. The market is also very fragmented with about 30,000
entities and the organized sector consisting of about 300 entities.
Consolidation is increasing in the industry with many local players building a
global outlook and also growing inorganically through mergers and acquisitions.
Key facts
- The growth of the Indian pharmaceutical industry reflects the rise of the
industry up the value chain of activities involved in pharmaceutical R&D
- The Indian industry has attained cost advantages in process research used
for generic drugs & value added generics production
- The acceptance of provisions of the agreement on TRIPS is expected to
change the orientation of Indian companies towards R & D
- Indian companies have started investing in complex R & D activities like
novel drug delivery system and new drug discovery
Table of Contents
Introduction
- Market Size of Indian Pharmaceutical Industry
- Break-up of the Market
- Key Statistics of the Indian Pharmaceutical Industry
- Historical Background
Market Overview
- Global Pharmaceutical Sector
- GLOBAL EXPENDITURE PATTERNS
- PHARMACEUTICAL PRODUCTS AS A PERCENTAGE OF HEALTHCARE
- SPENDING
- R&D EXPENDITURES
- MANAGED CARE SPENDS
- GENERICS GAINING GROUND
- BLOCKBUSTER DRUGS
- STRUCTURAL CHANGES IN THE INDUSTRY
Characteristics of Indian Pharmaceutical Industry
- Market Overview
- PROFITABILITY
- PATENT REFORMS
- IMPLICATIONS OF INDIAN PATENT (AMENDMENTS) ACT, 2005
- COST ADVANTAGES
- LOCATION
- RISKS
- TRADITIONAL MEDICINE
- Segmentation of the Indian Pharmaceutical Industry
- MAJOR THERAPEUTIC SEGMENTS
- STRATEGIC GROUPS
Key Emerging Trends
- Organised Sector
- MULTINATIONAL PHARMACEUTICAL FIRMS
- INDIAN PHARMACEUTICAL FIRMS
- Unorganised Sector
- Collaboration between Indian Firms and Multinationals
Critical Success Factors in the Industry
- Research & Development
- Production
- Marketing, Sales and Distribution
- Alliances
- Critical Success Factors-Formulations
- Critical Success Factors -Bulk Drugs
- Post 2005 Critical Success Factors
- Critical Success Factors for Indian Companies
- Critical Success Factors for Multinationals
Research and Development
- Kinds of Research
- Bringing Out a Generic Drug
- Pharmaceutical R&D Value Chain
- R&D In India
- CHANGING SCENARIO OF INDIAN R&D
- SIGNIFICANT MILESTONES IN LOCAL R&D
Industry Structure
- Investments
- Exports
- Research and Development
- Policies and Regulations
- INDIAN PATENTS ACT 1970
- DPCO (DRUG PRICE CONTROL ORDER) -1970
- GATT AND WTO
- Implications of WTO
- ON PRICES OF DRUGS
- ON R&D
- Intellectual Property Rights (IPR)
- Changing Scenario of Product Patent Regime
- Critic' s View
- PRICE ESCALATION
- MNC DOMINANCE
- R&D EXPENDITURE
- TECHNOLOGY
- Conclusion
Marketing & Distribution in Indian Pharmaceutical Industry
The Changing External Environment
Porters Five Forces Model
- Threat of New Entrants
- Intensity of Competition
- Threat of Substitutes
- Bargaining Power of Buyers
- Bargaining Power of Suppliers
Pharmaceutical Outsourcing in India
- Industry Drivers
- R&D COSTS
- PATENTS EXPIRY
- NEW OPPORTUNITIES
- Pharmaceutical Outsourcing Models
- CONTRACT MANUFACTURING
- CONTRACT RESEARCH
- Clinical Trials Outsourcing
- MARKET SIZE
- REGULATIONS
- CHALLENGES
- Future Directions
Future Outlook for the Indian Pharmaceutical Industry
- Strategic Options for Indian Firms
- Entering Overseas Markets
- Alliance Strategies
- Patenting Strategies
- Biotechnology
- Vaccine Strategies
- Implications for MNCs
- Product Patents
- Industry Profitability
- Alternative Medicine
- Emerging Trends
- Key Growth Barriers for the Industry
- Consolidation
- Bulk Drug Exports
- Imports
- Policy Recommendations
Indian Medical Equipments Market
- Market for Medical Devices
- Industry Trends
- Key Market Segments
Indian Healthcare Market
- Market Overview
- Private Sector
- Key Players in the Indian Healthcare Industry
- APOLLO GROUP
- MAX HEALTHCARE
- HINDUJA GROUP
Indian Biotechnology Industry
- Market Overview
- Projected Market Size of Indian Biotechnology Industry
- Industry Growth
- Future Developments
- Alliances
- Indian Bioinformatics Industry
- KEY PLAYERS IN THE INDIAN BIOINFORMATICS INDUSTRY
Key Players in the Indian Pharmaceutical Industry
Key Players in the Indian Pharmaceutical Industry
Key Multi National Corporations
- Glaxo Smithkline
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Pfizer
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Novartis
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- Aventis
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Wyeth
- INTRODUCTION
- PRODUCTS AND SERVICES
- Merck
- INTRODUCTION
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
Key Indian Firms in the Indian Pharmaceutical Industry
- Ranbaxy
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Nicholas Piramal India
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Dr. Reddy' s Labs
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Cipla
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Lupin
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- COMPANY STRATEGY
- REVENUE BREAK-UP
- Wockhardt
- INTRODUCTION
- BUSINESS MODEL
- PRODUCTS AND SERVICES
- REVENUE BREAK-UP
Case of a Leading Pharmaceutial Firm: Ranbaxy Laboratories
- History
- Ranbaxy' s Successful Report Card
- Why Has Ranbaxy Been This Successful?
- Evolution of Ranbaxy: Time Line Analysis
- 1970-EARLY 1980S
- EARLY 1980S-1994
- 1994 - 1997
- 1997 -1999
- POST 1999
- Leveraging Mergers & Alliances
- RESEARCH AND DEVELOPMENT
- ALLIANCES FOR ENTRY INTO US AND EUROPEAN MARKETS
- GROWTH OF MARKET SHARE AND PRODUCT PORTFOLIO
- Company Acquisitions
- Brand Acquisitions
- Creating Value through Functional Strategies
- MARKETING
- RELATIONSHIP MARKETING
- CO-MARKETING
- SALES STRENGTH
- BRAND RECOGNITION
- Ranbaxy' s Product Strategy
- Ranbaxy' s R&D Strategy
- Ranbaxy' s Human Resources Strategy
- Information Technology
Revenue Model for a Pharmaceutical Company
- Strategic Options for Pharmaceutical Firms
- INVEST IN RESEARCH AND DEVELOPMENT CAPABILITIES
- GROW A WIDE PRODUCT PORTFOLIO
- GROWTH THROUGH MERGERS AND ACQUISITIONS
- GROWTH THROUGH BRAND ACQUISITION
- GROWTH THROUGH LICENSING AGREEMENTS
- CO MARKETING AGREEMENT WITH COMPETITORS
- REMAIN A GENERICS PLAYER
- How to Build Sustainable Competitive Advantage
- PRODUCT PORTFOLIO MANAGEMENT
- INTEGRATED HEALTHCARE COMPANY
- DISTRIBUTION
- DISEASE MANAGEMENT/ SERVICE PROVIDER
- CLINICAL TEST CENTRES
- HEALTHCARE FUNDING SYSTEMS
- RE-ENGINEERING
- OUTSOURCING SERVICES
Case of a Leading Pharmaceutial Firm: Dr Reddys Labs
- Company Background
- Branded Generics
- International Marketing
- People Management
- Research & Development
- Future
List of Tables
- TABLE 1: KEY PHARMACEUTICAL COMPANIES IN INDIA
- TABLE 2: LEADING THERAPEUTIC SEGMENTS
- TABLE 3: MARKET SHARE OF MAJOR THERAPEUTIC SEGMENTS
- TABLE 4: LEADING BRANDS IN MAJOR THERAPEUTIC SEGMENTS
- TABLE 5: BRAND ACQUISITIONS IN THE INDIAN PHARMACEUTICAL INDUSTRY
- TABLE 6: R&D INVESTMENT OF INDIAN PHARMACEUTICAL COMPANIES
- TABLE 7: WHERE INDIA STANDS ON PATENTS
- TABLE 8: COST OF DRUG DEVELOPMENT
- TABLE 9: COMPARISON OF COSTS OF DRUG DEVELOPMENT
- TABLE 10: COMPARISON OF COSTS OF DRUG MANUFACTURING
- TABLE 11: CLINICAL TRIAL LABORATORIES IN INDIA
- TABLE 12: INDIAN MEDICAL EQUIPMENT MARKET SIZE
- TABLE 13: INDIAN HEALTHCARE MARKET STATISTICS
- TABLE 14: LIST OF BIOTECHNOLOGY FIRMS IN INDIA
- TABLE 15: ALLIANCES BETWEEN INDIAN ENTITIES AND MNC BIOTECHNOLOGY FIRMS
- TABLE 16: ALLIANCES BETWEEN INDIAN IT AND INDIAN BIOTECHNOLOGY ENTITIES
- TABLE 17: KEY PLAYERS AND THEIR CHARACTERISTICS
- TABLE 18: KEY BRANDS OF GLAXO SMITHKLINE IN INDIA
- TABLE 19: KEY BRANDS OF PFIZER IN INDIA
- TABLE 20: KEY BRANDS OF NOVARTIS IN INDIA
- TABLE 21: KEY BRANDS OF AVENTIS IN INDIA
- TABLE 22: KEY BRANDS OF WYETH IN INDIA
- TABLE 23: KEY BRANDS OF MERCK IN INDIA
- TABLE 24: KEY BRANDS OF RANBAXY
- TABLE 25: KEY BRANDS OF NICHOLAS PIRAMAL
- TABLE 26: KEY BRANDS OF DR REDDY' S
- TABLE 27: KEY BRANDS OF CIPLA
- TABLE 28: KEY BRANDS OF LUPIN
- TABLE 29: KEY BRANDS OF WOCKHARDT
- TABLE 30: RANBAXY' S IT INITIATIVES
- TABLE 31: TYPICAL PRICE DROPS AFTER A DRUG GOES OFF PATENT
List of Figures
- FIGURE 1: MARKET SIZE OF INDIAN PHARMACEUTICAL INDUSTRY
- FIGURE 2: VALUE OF PHARMACEUTICAL EXPORTS
- FIGURE 3: VALUE OF PHARMACEUTICAL IMPORTS
- FIGURE 4: PROJECTED BREAK-UP OF INDIAN PHARMACEUTICAL INDUSTRY
- FIGURE 5: VALUE OF BULK DRUG PRODUCTION IN INDIA
- FIGURE 6: STRATEGIC GROUP MAPPING OF INDIAN PHARMACEUTICAL INDUSTRY
- FIGURE 8: VALUE ADDED BY PHARMACEUTICAL PRODUCTS
- FIGURE 9: EVOLUTION OF KNOWLEDGE BASE OF INDIAN PHARMACEUTICAL INDUSTRY
- FIGURE 10: DISTRIBUTION CHAIN OF PHARMACEUTICAL COMPANIES IN INDIA
- FIGURE 11: PORTER' S 5 FORCES MODEL APPLIED
- FIGURE 12: NEW DRUG APPLICATION REVIEW PROCESS WITH THE U.S. FOOD & DRUG
ADMINISTRATION
- FIGURE 13: SIZE OF INDIAN CLINICAL TRIALS MARKET
- FIGURE 14: PATENT EXPIRATION BY THERAPEUTIC CATEGORIES
- FIGURE 15: NUMBER OF HOSPITALS IN INDIA
- FIGURE 16: NUMBER OF DISPENSARIES IN INDIA
- FIGURE 17: NUMBER OF PRIMARY HEALTH CENTRES IN INDIA
- FIGURE 18: NUMBER OF HOSPITAL BEDS IN INDIA
- FIGURE 19: NUMBER OF DOCTORS IN INDIA
- FIGURE 20: MARKET SIZE OF INDIAN BIOTECHNOLOGY INDUSTRY
- FIGURE 21: MARKET SIZE OF INDIAN BIOINFORMATICS INDUSTRY
- FIGURE 22: MARKET BREAK-UP OF INDIAN BIOINFORMATICS INDUSTRY
- FIGURE 23: GLAXO SMITHKLINE INDIA PRODUCT PORTFOLIO
- FIGURE 24: PFIZER INDIA PRODUCT PORTFOLIO
- FIGURE 25: WYETH INDIA PRODUCT PORTFOLIO
- FIGURE 26: MERCK INDIA REVENUE BREAK-UP BASED ON BUSINESS SEGMENTS
- FIGURE 27: RANBAXY REVENUE BREAK-UP
- FIGURE 28: NICHOLAS PIRAMAL BREAK-UP OF REVENUE FROM FORMULATIONS
- FIGURE 29: NICHOLAS PIRAMAL REVENUE BREAK-UP
- FIGURE 30: DRL . REVENUE BREAK-UP
- FIGURE 31: LUPIN BUSINESS PROFILE
- FIGURE 32: LUPIN THERAPEUTIC PORTFOLIO
- FIGURE 33: RANBAXY' S FOCUS DURING 1970-EARLY 1980S
- FIGURE 34: RANBAXY' S FOCUS DURING 1980-1994
- FIGURE 35: RANBAXY' S FOCUS DURING 1994-1997
- FIGURE 36: RANBAXY' S FOCUS FROM 1997 ONWARDS
- FIGURE 37: VALUE CHAIN OF RANBAXY
- FIGURE 38: STRATEGIC OPTIONS AVAILABLE FOR PHARMACEUTICAL FIRMS
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