Competition in Pharmaceuticals

Competition in Pharmaceuticals

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For the threat of substitute products, it is still very low due to the patents protection but in case of the expired patents, it is medium. A pharmaceutical company has lots of way to fight back against generic drugs such as obtaining patents on component chemicals, manufacturing methods, product extension/formula modifications or improving drug-delivery methods. Rivalry among existing firms is medium. Each pharmaceutical company has to fight in order to take an advantage of the first one who obtains patents. Moreover they are competing to bring their drugs to doctors' mind by hiring reps.
There are several alternatives to make a company less venerable. For the bargaining power of customers, in US, the MCOs are becoming stronger and stronger while the battle in prices against the purchaser outside the US is not decreasing so pharmaceutical companies cannot avoid reducing the prices of drugs. A pharmaceutical company can move its R&D centers to...

1. Low cost of production.
2. Large pool of installed capacities
3. Efficient technologies for large number of Generics.
4. Large pool of skilled technical manpower.
5. Increasing liberalization of government policies.

1. Aging of the world population.
2. Growing incomes.
3. Growing attention for health.
4. New diagnoses and new social diseases.
5. Spreading prophylactic approaches.
6. Saturation point of market is far away.
7. New therapy approaches.
8. New delivery systems.
9. Spreading attitude for soft medication (OTC drugs).
10. Spreading use of Generic Drugs.
11. Globalization
12. Easier international trading.
13. New markets are opening.

1. Fragmentation of installed capacities.
2. Low technology level of Capital Goods of this section.
3. Non-availability of major intermediaries for bulk drugs.
4. Lack of experience to exploit efficiently the new patent regime.
5. Very low key R&D.
6. Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world''s population).
7. Very low level of Biotechnology in India and also for New Drug Discovery Systems.
8. Lack of experience in International Trade.
9. Low level of strategic planning for future and also for technology forecasting.

1. Containment of rising health-care cost.
2. High Cost of discovering new products and fewer discoveries.
3. Stricter registration procedures.
4. High entry cost in newer markets.
5. High cost of sales and marketing.
6. Competition, particularly from generic products.
7. More potential new drugs and more efficient therapies.
8. Switching over form process patent to product patent.

Pharmaceuticals & Healthcare Report India
Independent 5-year pharmaceutical and healthcare industry forecasts for India.
Original pharmaceutical and healthcare market research and pharmaceutical and healthcare sector trend analysis for the Indian pharmaceutical and healthcare industry.
Competitive intelligence, Indian pharmaceutical and healthcare company rankings and SWOT analyses on international and domestic pharmaceutical and healthcare companies in the Indian market.

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The India Pharmaceuticals and Healthcare Report has been researched at source and features the latest available data and forecasts to 2011 covering drugs and healthcare expenditure, the prescription, OTC and generics markets, and foreign trade; company rankings and competitive landscapes including multinational and national drugs companies; and analysis of latest industry news, trends and regulatory developments.
India Pharmaceuticals and Healthcare Report provides industry professionals, market investors and corporate and financial services analysts with independent forecasts and competitive intelligence on the Indian pharmaceutical and healthcare industry.
We find this to be a concise view of the leading pharmaceutical companies in India. It allows us to focus on certain companies to determine if we need to initiate further research on their overall direction.
Key Benefits of Report
• Benchmark It's Independent 5-year Pharmaceutical and Healthcare Industry Forecasts on India to test other views – a key input for successful budgeting and strategic business planning in the Indian pharmaceutical and healthcare market.
• Target Business Opportunities & Risks in the Indian Pharmaceutical and Healthcare Sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in India.
• Exploit The Latest Competitive Indian Pharmaceutical and Healthcare Intelligence & company SWOTS on your competitors and peers through company rankings by sales, market share and ownership structure – includes multi-national and national companies in India.
Executive Summary & Industry SWOT
An at-a-glance perspective on latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The SWOT outlines strategic factors which affect It's forecast analysis, and taken together with It's Economic and Business Environment SWOTS, give a complete overview of market climate.
Market Summary
Outline of market characteristics, growth factors, leading therapeutic segments and a competitivness of the market.
Regulatory Regime
Guide to and analysis of country intellectual property developments and pricing & reimbursement issues, which constitute the regulatory make-up of the market.
Industry Developments
Focus on government healthcare reforms, epidemiological trends, company M&As, product launches, market entries, FDI activity, R&D and patent legislation.
It 5-Year Industry Forecast
5-Year Forecasts to end-2011 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:
• Drug market expenditure (US$bn); drug expenditure per capita (US$); as % of gdp
• Prescription drug market (US$bn)/as % of total market; sales by alimentary tract/metabolism; antibiotics, cardiovascular, central nervous system, oncology, musculoskeletal and respiratory system
• OTC market (US$bn)/as % of total market (sales by analgesic, cough and cold, digestives, skin treatments, vitamins and minerals)
• Generics market (US$bn)/ as % of total market
• Health expenditure (US$bn, % of gdp and per capita); public sector health expenditure as % of total; number of hospitals; beds, hospital admissions, doctors, births and deaths per 000 population
Forecasts based on bespoke It economic modelling, using historical data sets of macroeconomic and industry variables to derive rigorous statistical relationships, anchored in advanced linear regression techniques.
It 5-Year Macroeconomic Forecasts
It forecasts for all headline macroeconomic indicators, including:
Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against US$, government expenditure, external debt
Competitive Landscape & Profiles
Intelligence on the market position of major MNC power houses and indigenous companies. It profiles key research-based companies. Company SWOTS are provided for all key strategic players, complete with a company activity overview, its leading products and analysis of business opportunities.
Executive Summary
The extremely promising Indian pharmaceutical market is at risk of losing foreign investment if it does not upgrade its intellectual property framework to international standards. Demonstrating this, following its defeat in the August 2007 court case, Swiss multinational Novartis announced that it would reduce investment in the country in favour of regional rival China. Nevertheless, India presents numerous opportunities for drugmakers, such as low-cost manufacturing. For the US$11.2bn market, It is projecting CAGR of 7.93% through to 2011.
The court case with Novartis involved the company arguing that India's patent laws were unconstitutional. Novartis claimed that the legislation, which restricts the issuing of patents to products that provide more than 'incremental' improvements, contradicted international trade laws. However, the court rejected the challenge on the ground that it does not have jurisdiction over whether Indian patent regulations are in compliance with World Trade Organisation (WTO) rules.
Subsequently, a leading representative of the WTO said that India must update its patent laws to international standards, thereby truly encouraging and rewarding innovation. It is It's view that the change is inevitable as the reform will benefit domestic drugmakers, which are increasingly involved in R&D, as well as foreign players. If changes are not undertaken, investment in the country will fall, severely hampering economic development.
Meanwhile, The Federation of Indian Chambers of Commerce and Industry (FICCI) believes that it would cost approximately US$200bn over the next five years to solve the crisis in Indian healthcare. According to study conducted by the FICCI, even though 72% of India's population lives in rural areas, 80% of doctors, 75% of dispensaries and 60% of hospitals are in urban areas.
India's retail pharmacy market is highly fragmented and dominated by archaic independent kiosks. Modernisation is the emerging trend and the ultimate consequence of this is consolidation of small players, instigated by the large chains. Furthermore, operators are expanding out of the historical middleclass customer base to the challenging low-income demographic, both in rural areas and urban conurbations. Low margins are to be expected but increased brand awareness to vast numbers of new consumers will ensure long-term stability and growth.
The market for prescription anti-obesity medicines in India is expected to achieve phenomenal 50% yearon- year growth over the next five years, making it the most attractive pharmaceutical industry sub-sector in It's universe. Multinationals such as Roche, Sanofi-Aventis and Abbott Laboratories will reap some returns with their patented products, but local generic drug companies – such as Torrent and Zydus Cadila – are destined to capture greater market share.
According to the first class, the power point showed that the pharmaceutical industry is the most profitable industry. Based on the Porter's five forces model, there are convincing explanation why the pharmaceutical industry has big profitability. For the threat of new entrants perspective, it is high. The pharmaceutical industry has a big barrier to prevent newcomers to enter this industry such as R&D costs, patents limitation, the long length of clinical time, the percentage of FDA to approve drug, a access to distribution channels, huge marketing and sales costs and production of drugs. The bargaining power of suppliers is low. The bargaining power of customers is low in the US market while the bargaining power of customer in some countries is medium for example Canada which the government sponsored Canadian health care has a powerful bargaining power to pharmaceutical companies. However, that would not be a big problem because the US market is still the major source of revenue......
in most pharmaceutical companies. For the threat of substitute products, it is still very low due to the patents protection but in case of the expired patents, it is medium. A pharmaceutical company has lots of way to fight back against generic drugs such as obtaining patents on component chemicals, manufacturing methods, product extension/formula modifications or improving drug-delivery methods. Rivalry among existing firms is medium. Each pharmaceutical company has to fight in order to take an advantage of the first one who obtains patents. Moreover they are competing to bring their drugs to doctors' mind by hiring reps.
There are several alternatives to make a company less venerable. For the bargaining power of customers, in US, the MCOs are becoming stronger and stronger while the battle in prices against the purchaser outside the US is not decreasing so pharmaceutical companies cannot avoid reducing the prices of drugs. A pharmaceutical company can move its R&D centers to...
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