Amity International Business School
Term Paper Report On Pharmaceutical Industry
Submitted By: Akansha Neha Sandhu Rijul Shivang
* Research Methodology
* Review of Literature
The pharmaceutical industry is important because it is a major source of medical innovation. In our Report we have analyzed the Indian Pharmaceutical Industry and we have also done Market analysis of Panacea Biotec. India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, India ranks third in terms of manufacturing pharma products by volume. The Pharmaceutical Market is ranked 14th in the world. By 2015 it is expected to reach top 10 in the world beating Brazil, Mexico, South Korea and Turkey. More importantly, the incremental market growth of US$ 14billion over the next decade is likely to be the third largest among all markets. The US and China are expected to add US$ 200bn and US$ 23bn respectively. Generics: India tops the world in exporting generic medicines worth US$ 11 billion. The Indian generic drug market is to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13. Over the next few years, it is expected that the patent laws will provide impetus to the launch of patent-protected products. Such products have the potential to capture up to a 10% share of the market by 2015, implying the market size of US $2bn. R&D: According to Battelle R&D magazine, gross expenditure on R&D (GERD) by India for 2012 was projected to be US$ 41 billion in purchasing power parity terms, which works out to 0.8 per cent of GDP. This is low both in absolute terms and as a proportion of GDP compared to other countries. This is partly because the size of the R&D base and absorption capacity is not commensurate with requirements.
Demand: The demand for pharmaceutical products in India is significant and is driven by many factors like low drug penetration, rising middle-class & disposable income, increased government & private spending on healthcare infrastructure, increasing medical insurance penetration, changing demographic pattern and rise in chronic lifestyle-related diseases; adoption of product patents, and aggressive market penetration driven by the relatively smaller companies. According to CARE research demand triggers for the growth are: * Between 2010 and 2015 patent drugs worth US$171 bn are estimated to go off-patent leading to a huge surge in generic products. * High margin pharma export business is expected to grow at a higher rate than domestic market given increased in outsourcing activities. * Increased M&A activities is set to consolidate the market which widens geographic reach, strengthens distribution network and venture into new therapeutic segments. * Indian companies files the highest number of ANDA’s with USFDA leading to greater chances of approvals and thereby increasing export to regulated markets especially the US. * There are currently approximately 175 USFDA and nearly 90 UK-MHRA approved pharma manufacturing plants in India which can supply high quality pharma products globally. * Growth from rural markets will outstrip overall pharma market growth, albeit at lower margins, given lower penetration of 18-19% coupled with rising income level and awareness. * Biopharmaceuticals is another potential high growth segment for Indian pharma growing at double digit driven by the vaccines market.
Pharmaceutical Company – Panacea Biotec
Panacea Biotec is an Indian research...
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