...The Pharmaceutical industry in the Global Economy Summer 2005 Larry Davidson* and Gennadiy Greblov Indiana University Kelley School of Business Bloomington, Indiana *Davidson is Professor of Business Economics and Public Policy and Greblov is working towards his MBA degree at the Kelley School of Business Prepared for the Indiana Economic Development Corporation with the support of the Center for International Business Education and Research at the Indiana University Kelley School of Business. Information Services via the World Trade Atlas, U.S. State Export Edition. To receive free copies of the export report please contact the Indiana Economic Development Corporation’s Office of International Trade at 317.232.4949. Direct questions to the authors of the report to Larry Davidson at davidso@indiana.edu or 812.855.2773. Introduction This paper summarizes the results of our global pharmaceutical industry analysis and is intended to increase awareness of the general public – investors, policy makers, managers, employees of the companies – about its current developments. The paper has the following major goals: 1) To analyze the current situation, major challenges and the prospects of the pharmaceutical industry; 2) To identify major players of the global pharmaceutical industry and make a comparative analysis of their business practices and financial results; 3) To determine the relative position of the U.S. pharmaceutical...
Words: 10094 - Pages: 41
...INDIAN PHARMACEUTICAL INDUSTRY – AN OVERVIEW 1. Overview The Indian Pharma industry is one of the fastest growing sectors with approximately 20,000 manufacturing units. The industry that is highly price sensitive ranks thirteenth in the global pharmaceutical market in value terms and fourth in volume terms. The country has tremendous export potential in the areas like custom synthesis, R&D, clinical trials, and Bioinformatics. The industry produces 60,000 finished medicines and roughly 400 bulk drugs, which are used in formulations with about 20% of the manufacturers in the bulk drugs segment. India has approximately 1% share of global pharma industry, which is worth US$406 billion. This implies that there is a huge market waiting to be unfolded. The figure below explains the evolution of Indian pharmaceutical industry: Figure 1: Progress Of Indian Pharmaceutical Industry Source: Pharmabiz.com (Article by Dr. Laxman Prasad) 2. Industry Structure and Size 2.1 Industry Structure The Indian Pharma industry is highly fragmented and can broadly be classified in to two categories: organized and unorganized sector. Figure 2: Revenues of Organised vs. Unorganised Sector Source: Secondary Research The organized sector contributes about 70% of the total revenues and consists of 260 units in both manufacturing as well as formulation segment. This sector can further be divided into Indian and multinational companies. The unorganized sector is...
Words: 1530 - Pages: 7
...1) Pharmaceutical Industry in India: India is the third largest pharmaceutical market in the world in terms of volume. The market is believed to grow at a compound annual growth rage (CAGR) of 14-17 percent in between 2012-16. There has also been a considerable growth in the levels of pharmaceutical exports from India. The industry started picking momentum in the early 1960s, with government actively encouraging the sector with the Patents Act. However, the liberalization of 1991 enabled the industry to become what it is today. Many of the Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident. GlaxoSmithKline and Ranbaxy: A Comparison GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant...
Words: 3952 - Pages: 16
...Indian Pharma Industry – an overview April 13, 2012 The demand for pharmaceutical products in India is significant and is driven by low drug penetration, rising middle-class & disposable income, increased government & private spending on healthcare infrastructure, increasing medical insurance penetration etc. The Indian pharmaceutical industry is growing at about 8 to 9 percent annually according to “A Brief Report Pharmaceutical Industry in India,” published in January 2011. The Pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are approximately 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). I. Current Scenario: India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, Indiaranks third in terms of manufacturing pharma products by volume. According to McKinsey, 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. McKinsey & Company’s report, “India Pharma 2020:...
Words: 1969 - Pages: 8
...Pharmaceuticals and Life Sciences Global pharma looks to India: Prospects for growth Table of contents Introduction 03 Background 04 A fast growing economy An expanding pharmaceutical market Government-provided healthcare improving, but private healthcare dominates Domestic market overview 09 Background Consolidation underway, despite challenges Contract manufacturing Vaccines Over the counter market holds significant potential Reaching the untapped rural market Growing Research & Development 15 Overview Clinical trials Biotech and biosimilars on track for growth Other growth areas Bioinformatics 20 Stem cell research Medical devices Global Pharma’s evolving business models and options in India 23 Background Export-oriented business (Contract Research and Manufacturing Services) Licensing Franchising Joint ventures Wholly-owned subsidiaries Practical concerns 27 Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
Words: 17333 - Pages: 70
...The global pharmaceutical industry has enjoyed steady growth in recent years, despite a global economic downturn. But with patent expiries, stricter regulations, and U.S. healthcare reforms, the pharmaceutical industry is increasingly under pressure to maintain its steady revenue flow. With the patent cliff looming through 2014, many pharmaceutical companies are restructuring to reestablish their industry dominance. They are reinventing themselves through mergers and acquisitions, or are signing licensing deals in order to survive. Real Publishing presents a study of key pharma industry trends. This report offers an analysis of the impact of those trends, and reforms and regulations, particularly in the U.S. and the EU. Key Trends Explored: - Generic drug manufacturers are gearing up to take advantage of the opportunities presented by the many patent expiries - What trends are impacting the leading generic drug manufacturers such as Teva, Sandoz, and others - What government regulations and policies will effect pharma company bottomlines in 2012 and beyond? - How are pharma companies using mergers and acquisitions to maintain a competitive edge? - What is the state of the current global pharmaceutical industry and where is it growing? - Pharmerging countries contribute approximately half of growth, with China as third-largest market Global Pharma Industry Trends Examined: - Challenge of Patent Expiries - Challenges Facing the Generic...
Words: 354 - Pages: 2
...INDIAN MARKET Due to poor sanitation conditions, infectious (acute) diseases are predominant in India. However, the incidence of chronic ailments, characterised by prolonged exposure, has been increasing with the emergence of lifestyle diseases in India, due to changing work pattern of the working population, higher stress levels, and unhealthy eating habits. Key issues answered through this analysis: What are acute and chronic ailments? What is the proportion of drugs for each segment in the total domestic formulations market? How have various therapeutic categories in the domestic formulation market performed over the last three years? Publish Date: 15-Jul-2013 | | Majority of ailments in India are more acute than chronic in nature Types of ailments Source: CRISIL Research Ailments can be classified into acute and chronic. Acute ailments are characterised by sudden, severe exposure (usually a single, large exposure) and rapid onset of the disease. The patient shows intense symptoms for a brief duration (not longer than 30 days). Infectious diseases such as common cold, fever, etc are some examples of acute ailments. However, some acute ailments may turn chronic if left unaddressed. Chronic ailments are characterised by prolonged or repeated exposures over many days, months or years. Chronic diseases can only be alleviated through treatments, but not fully cured. Unlike acute ailments, they do not usually resolve on their own accord. Examples of...
Words: 12248 - Pages: 49
...The Pharmaceutical Industry 1. Origins and Evolution The modern pharmaceutical industry is a highly competitive non-assembled1 global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger between Ciba and Geigy), Novartis2 etc. Most are still going strong today3. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. The introduction and success of penicillin in the early forties and the relative success of other innovative drugs, institutionalized research and development (R&D) efforts in the industry 4. The industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory environment. During this period healthcare spending boomed as global economies prospered. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls, especially with the introduction of regulations governing the manufacture of ‘generics’5. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products, a result of...
Words: 1706 - Pages: 7
...pharmaceuticals is relatively low. By 2010 end, the domestic Pharma market in India is expected to be US$ 13.76 billion and this is likely to increase at a compound annual growth rate of 9.5-10 per cent till the year 2015. The success and failure of any project in this industry is largely dominated by R&D spending. R&D spending of the large firms is almost as high as 10 percent of the total earnings. The aim of our study is to find out what effect R&D spending has on the market capitalisation as well as on the share prices of the firms. The regression technique along with the Booz-Allan-Hamilton approach has been used in finding out this relation. The Indian Pharmaceutical Market- A review India has a huge population in excess of one billion people and a growing middle class with access to high quality healthcare. The Indian pharmaceutical market is highly competitive and remains dominated by low priced, domestically-produced generics. In value terms, India accounts for less than 4% of the world market and per capita expenditure on pharmaceuticals is relatively low. The pharmaceutical sector is currently experiencing double digit growth and this is expected to continue, driven by the vaccines market. Continued growth is also expected in the diagnostic and therapeutic segments, including cancer and diabetes. The Indian pharmaceutical industry represents around 8% of world pharmaceutical production. This industry plays an important role in promoting and sustaining development...
Words: 484 - Pages: 2
...Competition Law & Pharmaceutical Industry Adithya Krishna Chintapanti About CENTAD Undertakes policy research and advocacy on issues related to trade and development, with a primary focus on South Asia. Centad’s work on access to medicines currently focuses on issues pertaining to access in India and aims to Secure a legal and policy environment to ensure access to medicines. Ensure transparency and accountability in public spending on drugs. Examine the impact of industry practices on access. Focus of the Presentation Bring to light anti-competitive practices prevalent in the pharmaceutical industry and healthcare sector. Indicate the approach proposed to be taken for executing the study and analyzing the data collected in pursuance thereof. Broad Scheme of Presentation Indian Pharmaceutical Industry a Snapshot Access to Medicines Situation in India Objectives of the Study Anti-competitive Practices Competition Act 2002 Regulation of Combinations Anti-competitive Agreements Abuse of Dominance Proposed Chapterisation Proposed Methodology 1. 2. 3. Indian Pharmaceutical Industry a Snapshot Net Worth 8 Billion Dollars Growth Rate of 8-9% PA. 4th in the World in terms of Volume of Drug Output Exports to nearly 212 countries @ USD 4795.33 million (2005-06) Has an important role to play in promoting public health and Right to Health. Highly technology and knowledge intensive. Indian Pharmaceutical Industry a Snapshot Industry growth highly dependent on the...
Words: 2852 - Pages: 12
...ĐƠN XIN VIỆC |SƠ YẾU LÝ LỊCH | |Họ tên |MAI THỊ HUỆ | |Ngày tháng năm sinh |25/06/1989 | |Giới tính |Nữ | |Tình trạng |Độc thân | |Địa chỉ |66/159/4 Xô Viết Nghệ Tĩnh, P.21, Q.Bình Thạnh | |Email |maihuepr25689@gmail.com | |Phone number |0937 313 489 | |Trình độ |Cử nhân | |Ngành |Hàn Quốc Học, Trường Đại Học Khoa Học Xã Hội và Nhân Văn | |Ngôn...
Words: 710 - Pages: 3
...Individual Paper How IT Savvy is the Pharmaceutical Industry? [pic] How IT Savvy is the Pharmaceutical Industry? According to Peter Weill and Jeanne Ross, authors of the book, “IT Savvy: What Top Executives Must Know to Go from Pain to Gain”, IT Savvy firms need platforms of digitized processes that can make companies more agile and boost company performance. "The purpose of a digitized process platform is to disengage people from processes that are better performed by machines," the authors say. Therefore, that frees people up to focus on the key success drivers within the pharmaceutical industry, such as innovation and process excellence, which are embedded with dimensions of speed, quality, and decision making . My company The results obtained from the ‘How IT Savvy are you and your colleagues’ assessment showed the following: • The IT savvy score is 19.3, so the return we get per dollar invested in IT is above the industry average, in accordance with the assessment interpretation. There are still areas for continuous improvement. • The two major areas for implementing some enhanced processes are the cross -functional team shared experience and the simplification of business procedures. A real-life example of the previous topic regarding shared experience is the use of some customer service relevant data captured in one business area (market analysis) which is not taken into account throughout the company as an important tool to improve service, reduce...
Words: 1249 - Pages: 5
...IMPACT OF TOTAL QUALITY MANAGEMENT IN INDIAN PHARMACEUTICAL COMPANIES’ PERFORMANCE Name: Singh Sudhanshu Bala, Roll no.- ITM/BIT/MUMBAI/09/1- 17 2. INDEX Serial No. Title Page No. 1. Title Page 1 2. Index 2 3. Title of the Thesis 3 4. Background of Research 4 5. Objectives 10 6. Scope 11 7. Methodology 11 8. Review of Literature 12 9. Gaps in Literature 14 10. Summary of the Proposal 14 11. Work Plan 16 12. References 17 3. TITLE OF THE THESIS: IMPACT OF TOTAL QUALITY MANAGEMENT IN INDIAN PHARMACEUTICAL COMPANIES’ PERFORMANCE 4. BACKGROUND OF RESEARCH: Total quality management (TQM) - TQM has been defined as an integrated organizational effort designed to improve quality at every level. TQM is also defined as quest of excellence, fitness for use, value for money, customer satisfaction etc. The International Organisation for Standards (ISO) defines TQM as, "TQM is a management approach for an organisation, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction and benefits to all members of the organisation and to society." ISO 8402:1994 TQM acts as an umbrella under which everyone in the organisation...
Words: 3769 - Pages: 16
...Attrition Analysis (2014-15) [pic] June 2015 Prepared By: Anushree Panicker (SIES College of Management Studies) Sugandhi Murali (SIES College of Management Studies) Surabhi Nair (Institute of Management and Computer Studies) Table of Contents | | | | |Sr No. |Particulars |Page No | |1. |Executive Summary |3 | |2. |Objectives |4 | |3. |Scope |5 | |4. |Methodology |6 | |5. |Introduction |8 | |6. |Steel Manufacturing Sector |9 | |7. |About Mukand Limited |10 | |8. ...
Words: 3838 - Pages: 16
...Contract Manufacturing/ Outsourcing of production facilities Contract Manufacturing/ Outsourcing of production facilities 419, TFEMR, XLRI, Circuit House Area, Jamshedpur 9901478733 [Type the fax number] 5/17/2015 419, TFEMR, XLRI, Circuit House Area, Jamshedpur 9901478733 [Type the fax number] 5/17/2015 Siddharth Joglekar An assessment of the advantages, risks, challenges associated with the field of contract manufacturing and the steps to tackle them Siddharth Joglekar An assessment of the advantages, risks, challenges associated with the field of contract manufacturing and the steps to tackle them With the proliferation of globalization, most of the top producers of consumer goods have set up or are trying to set up shop in India. A vast demography spread across an equally diverse geography makes the process of making goods available for the populace enormously challenging. With a majority of the population (68%) dispersed across the rural areas as opposed to a more concentrated (32%) urban population, accessibility to the forces of the market is an exacting task as is integrating the supply with the demand functions. As a solution to this problem, several contract manufacturers have lent their capacities to these producers. This article aims to assess the various advantages and risks faced by both the hirer and the manufacturer associated with outsourcing production facilities. It also takes a step further and determines the challenges associated in...
Words: 1300 - Pages: 6
