Indian Pharmaceutical Industry: a Vision with Its Strength and Weakness
INDIAN PHARMACEUTICAL INDUSTRY: A VISION WITH ITS STRENGTH AND WEAKNESS Dr. A. SELVARAJ*
ABSTRACT
The future of Indian pharmaceutical sector looks extremely positive. Indian pharma companies are vying for the branded generic drug space to register their global presence. Several Indian pharmaceutical companies have acquired companies in the US and Europe and many others are raising funds to do so. The Indian Pharmaceutical industry meets approximately 95% of the country’s pharmaceutical needs. The present turnover of the Indian Pharma Industry is approximately $ 9.0 billion of which the share of exports is 40%. India’s pharmaceutical companies can also operate at much lower profit margins that their Western counterparts. Today, India produces some of the cheapest drugs in the world, especially because labor costs are 50 to 55% cheaper than in the West. Industry experts indicate that infrastructure costs are 40 % lower and fixed cost is estimated to be 12% to 20% less that in the United States and Western Europe.
INDIAN PHARMACEUTICAL INDUSTRY: A VISION WITH ITS STRENGTH AND WEAKNESS Dr. A. SELVARAJ*
Health is defined both as a cause and effect of economic development. Therefore, pharmaceutical industry is defined as an essential factor that can contribute to the economic development. In addition it provides significant socio-economic benefits to the society through creation of jobs, supply chains and through community development. The industry also plays an important role in the technological innovation which may reduce the cost of economic activity elsewhere in the economy. Players in the pharmaceutical industry include branded drug manufacturers, generic drug manufacturers, firms developing bio-pharmaceutical products, non-prescription drug manufacturers, firms undertaking contract research. Indian Pharmaceutical Industry is playing a key role in promoting
ABSTRACT
The future of Indian pharmaceutical sector looks extremely positive. Indian pharma companies are vying for the branded generic drug space to register their global presence. Several Indian pharmaceutical companies have acquired companies in the US and Europe and many others are raising funds to do so. The Indian Pharmaceutical industry meets approximately 95% of the country’s pharmaceutical needs. The present turnover of the Indian Pharma Industry is approximately $ 9.0 billion of which the share of exports is 40%. India’s pharmaceutical companies can also operate at much lower profit margins that their Western counterparts. Today, India produces some of the cheapest drugs in the world, especially because labor costs are 50 to 55% cheaper than in the West. Industry experts indicate that infrastructure costs are 40 % lower and fixed cost is estimated to be 12% to 20% less that in the United States and Western Europe.
INDIAN PHARMACEUTICAL INDUSTRY: A VISION WITH ITS STRENGTH AND WEAKNESS Dr. A. SELVARAJ*
Health is defined both as a cause and effect of economic development. Therefore, pharmaceutical industry is defined as an essential factor that can contribute to the economic development. In addition it provides significant socio-economic benefits to the society through creation of jobs, supply chains and through community development. The industry also plays an important role in the technological innovation which may reduce the cost of economic activity elsewhere in the economy. Players in the pharmaceutical industry include branded drug manufacturers, generic drug manufacturers, firms developing bio-pharmaceutical products, non-prescription drug manufacturers, firms undertaking contract research. Indian Pharmaceutical Industry is playing a key role in promoting