Growth And Growth Of Pharmaceutical Industry

860 Words4 Pages
The pharmaceutical industry of India is passing through a transformational stage and to avail the immense opportunities that have opened up globally industry players are organizing themselves. The outlook of the industry remains strong as the sector is set to report impressive growth in the years to come. FACTOR RELATED TO DEMOGRAPHICS Rise in per capita income coupled with population growth and increase in health awareness are some factors which will drive the demand for the pharmaceutical industry domestically. Population growth and improving life expectancy are some of the demographic factors which will drive domestic demand. The population of India is likely to touch 14.11 billion by 2026, according to the Economic survey of 2005-06. 68% of the total population in 2026 is likely to be constituted by the portion of population in age-group of 15-65 years as against 61% in 2001. THE NEW PRODUCT LAUNCHES Multinational companies have shown renewed interest in launching some blockbuster products in India, after the introduction of product patent laws in India. In future as well the trend is likely to continue. Contract manufacturing and in-licensing opportunities will accrue for Indian players including small and medium enterprises because of launches of new molecules by MNCs. Expertise in formulation and chemical synthesis have been acquired by SMEs. Under contract manufacturing gives them a safe position against margin fluctuations. RISING INVESTMENT IN R&D The Sustainable growth will prevail due to current investment made towards R&D, given the long gestation period right from the discovery of molecules to the final approval for marketing. Indian players developed some important molecules which have already reach... ... middle of paper ... ...led drugs owing to rise in input costs and the increase in average price is attributed to rise in prices of drugs not under control. Recent trends show an impressive an impressive growth in the over the counter (OTC) segment and most of the OTC drugs are out of the ambit of price control. Therefore the mix of business between domestic and exports as well as the product mix prescription and OTC drugs holds the key to profitability for players in general, and for SMEs in particular. The industry is set to grow in the medium to long term on the strength of better R&D capabilities ad rise in exports to a high value and high growth market in despite the concern over pricing and huge investments in R&D leading to blocking of funds and resulting in short term obstacles. (Source: REFERENCE:
Open Document