Import of Raw Materials 4 Pharmacy Products

Topics: Pharmaceutical industry, International trade, Generic drug Pages: 34 (11559 words) Published: July 8, 2010
Introduction To Indian Pharmacompanies

The pharmaceutical industry of India has matured over the years into a major producer of bulk drugs, rated among the top five in the world. The industry is largely concentrated in the production of ‘generics’ on account of the Process Patent Law introduced in the seventies (repealed under the recent TRIPS Agreement). India has since been able to establish technological capability for manufacture and supplying of generic drugs. This ‘generics capability’ of India has attracted worldwide attention. A noticeable surge in mergers and acquisitions with either a foreign company seeking a stake in an Indian counterpart or vice versa reflects the attractiveness of what has been called as the ‘platform of capabilities’. Indian companies seek to expand and consolidate their platform of capabilities in their endeavor to either develop indigenous branded generics or to acquire established branded generics. Today the Indian pharmaceutical industry has become a prominent provider of healthcare. It meets 95% of the country’s medical needs and constitutes about 1.3% of the world market in value terms and 8% in volume terms represented by 250 large pharmaceutical manufacturers (5 of these are in the public sector) and about 8000 small scale units. The generics pharmaceuticals sector in India have come of age, their future sustainable growth depends on ensuring competitive markets and the Competition Commission is sensitive to the differing perspectives that are inevitable to an industry so critical to life itself.

Brief sketch of pharmaceuticals industry

The Indian Pharmaceutical Industry is among top five producers of bulk drugs in the world. Pharmaceuticals market can be roughly classified into Bulk drugs (20% of the market) registering growth rates of 20% and formulations (80% of the market) with an annual growth rate of 15%.There are about 8174 bulk drug manufacturing units and 2389 formulations units spread across the country. Pharmaceutical Companies Operating in India is a pool representing about 250 large Pharmaceuticals manufacturers and suppliers and about 8000 Small Scale Pharmaceutical & Drug Units including 5 Central Public Sector Units. At the time of independence, the bulk drug industry in India was in the infancy stage. Most of the bulk drugs and formulations were imported. Since then, the Indian pharmaceuticals industry has evolved through the opportunities arising within the regulated environment. The Indian Patents Act (1970) and establishment of large public sector companies for the manufacture of bulk drugs enabled the development of the pharmaceuticals industry in India. The Indian pharmaceutical industry from being a pure reverse engineering industry focused on the domestic market, the industry is becoming research driven, export oriented and globally becoming competitive. The industry is dependent on its presence in the therapeutic segment and new categories, viz. cardiovascular, central nervous system and anti diabetic are expanding at double digit growth rates. The generic drug companies in India have broad technological and diversified market capabilities. As more and more patents expire, the generic portion of the pharmaceutical market is expected to continue to have increased sales. Indian companies are attempting to tap the generic drug markets of the developed countries. The technological capability for manufacturing and supplying generic drugs of these companies make them major players in the international generics market. With the WTO commitment in Jan 1, 2005, to recognize foreign product patents outsourcing in the fields of R&D, contract manufacturing and co-marketing alliances have been identified by industry federations as an opportunity for Indian companies. India has the best chemistry skills and low cost advantages in research and manufacturing and skilled manpower, which will attract foreign investors, apart from encouraging basic research and...
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