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...
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...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: https://www.dnb.co.in/)
REFERENCE: http://www.dnb.co.in/pharmaceutical/future%20outlook.asp
The pharmaceutical industry develops, produces, and markets drugs or pharmaceuticals compounds for medical purpose. Pharmaceutical companies produce generic, brand medications and medical devices. The industry is subject to a complex regulatory environment regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs.
In America today, many people are in need of medical help. In fact,the Federal Trade Commission estimates that 75% of the population complain of physical problems (Federal Trade Commission 9). They complain, for example, of fatigue, colds, headaches, and countless other "ailments." When these symptoms strike, 65% purchase over-the counter, or OTC, drugs. In order to take advantage of this demand, five billion dollars is spent by the pharmaceutical industry on marketing each year . This marketing, usually in the form of advert...
When people think of pharmaceutical companies, they instantly associate the word pharmaceutical with medicine. There are scientists solely dedicated to find the remedy to cancer and incurable diseases. These professionals have devoted their educated lives to help the ailing human population recover.
In conclusion, pharmaceutical companies are extremely edacious and cold-blooded. Their profits numbers in the billion’s range while seniors are struggling to afford their prescribed drugs to survive. The pharmaceutical industry is strongly against Americans getting their prescriptions from Canada. Yet these people cannot help it; they are not financially secure to afford the drugs sold in America. The U.S. Government tries to isolate itself from the problem in order to make money from the taxes of prescriptions. However, almost every other country has some type of control over their pharmaceutical companies’ prices. In the future, with more and more drugs developed, only more and more money is going to be in need by the pharmaceutical industry. So unless something can be done soon, this war on drugs is only going to climb uphill. Yet how could these top-paid personnel understand what it feels like to be unable to afford prescription drugs in order to maintain a healthy body or even to stay alive? If there was an answer to that question, the dilemma of overpriced drugs might have a solution.
Prescription drug prices rose three times faster than inflation in the decade between 1981 and 1991, making the pharmaceutical industry the nation's most profitable business. Prescription drugs even exceeded the rapidly rising inflation rate for all other medical services. They now represent at least 10% of all the medical costs in the United States.1
...emand for prescription drugs over the next 25 years. The number of people between 45 and 64 years old will increase 41% by 2015. Given the rise in age population and life expectancy rates around the world and the level of pharmaceutical use by aging individuals, growth in the industry should remain in an upward trend.
The United States spends more per capita on health care than any other country, with the percentage of gross domestic product dedicated to health care doubling from 9% in 1980 to 18% in 2011(Kesselheim,). One of the contributors to health care inflation is prescription drugs. Pharmaceuticals account for about 10% of total health care costs, spending on pharmaceuticals is poised to swell in upcoming years as a result of the increasing prices of complex specialty medicines (Kesselheim). Name brand drugs are going to have to be set at higher prices, in order for pharmaceutical companies to receive a profit. If the patient has full coverage on a medication, there is a greater chance that medication will be taken, although it may not be
"Reducing Demand for Drugs." UN General Assembly Special Session on the World Drug Problem. May 1998. Web. 02 Mar. 2011. .
Phatak, A. (1998 йил 01-01). The pharmaceutical industry and the medical profession. Retrieved 2012 йил 19-01 from Indian Journal of Medical Ethics: http://www.ijme.in/064cr131.html
Scherer, A. (2012) ‘M&A in Big Pharma: Holy Grail or Buying Time’, Contract Pharma, 21 Mar [Online]. Available at: http://www.contractpharma.com/contents/view_experts-opinion/2012-03-21/ma-in-big-pharma/#sthash.NnrBSo3O.dpuf (Accessed at: 15 December 2013)
For commodity generic drugs, Teva has an opportunity to expand its core business into emerging markets, but there it will have to face institutional voids because such markets are driven by physicians and both physician and other people are not aware about the effectiveness of generic drugs. To cope with the challenge of institutional voids Teva have to look for some competent small pharmaceutical firms for acquisition and some big firms for the joint venture. For changing the perceptions of people and physicians, Teva will require to run marketing campaigns and direct approaches to physicians to develop a market for their products.
The pharma companies in general are optimistic about the M and A. The growth of the pharmaceutical industry is expected to be driven by the diabetes, skincare and eye care segment.
manpower and a large base of FDA approved plants, positions India high on the outsourcing
Market Size- India’s retail market is expected to nearly double to US$ 1 trillion by 2020 from US$ 600 billion in 2015, driven by income growth, urbanisation and attitudinal shifts. While the overall retail market is expected to grow at 12 per cent per annum, modern trade would expand twice as fast at 20 per cent per annum and traditional trade at 10 per cent.
...ents expiring as drugs become available at cheaper costs and therefore more people can gain access to these drugs, including 3rd world countries. It is clear to see that there are many pros and cons to patents in the pharmaceutical industry. The system that is in motion at present between the big pharmaceutical companies, the generics industry and the WHO seems to be working efficiently. Some may complain that the pharmaceutical companies are creating too big a monopoly and are greedy but without them discovery of new medicines wouldn’t happen. Patents have thus far ensured that inventors and researchers reap economic rewards for their work and new treatments and new medicines are made available on a regular basis. Essentially without patents there would be no innovation and discovery of new medicines. And without that we would be no better off than we are now.