...“The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.” Richard Gerster The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. Growth Scenario in 2010 India's pharmaceutical industry is now the third largest in the world in terms of volume. Its rank is 14th in terms of value. Between September 2008 and September 2009, the total turnover of India's pharmaceuticals industry was US$ 21.04 billion. The domestic market was worth US$ 12.26 billion. This was reported by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. As per...
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...Company Name : Abbott India Assignment 2- Overview of the Industry (a) Degree of competitiveness in the industry; The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. 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 injectibles. There are about 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). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific...
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...Pharmaceutical Cluster in Andhra Pradesh Microeconomics of Competitiveness Final Project Harvard Business School Helene Herve | Lhakpa Bhuti | Saurabh Agarwal | Sonny Kushwaha | Akbar Causer May 2013 Table of Contents 1 2 Executive Summary ............................................................................................................................ 3 Introduction to India ........................................................................................................................... 4 2.1 2.2 History and Political Climate ....................................................................................................... 5 Competitive Positioning of India ................................................................................................. 6 Endowments .......................................................................................................................... 6 Economic Performance To-Date and Macroeconomic Policy.............................................. 7 Summary of Export Clusters ................................................................................................. 9 Social Infrastructure and Political Institutions.................................................................... 10 India Diamond .................................................................................................................... 11 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 3 3.1 Andhra Pradesh .............................
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...Concurrent Events : 2011 DHAKA, BANGLADESH 24-26 FEBRUARY-2011 The 8th International Exhibition on Asian Pharmaceutical Industries THE GATEWAY TO THE SOUTH ASIAN PHARMA MARKET Join with Expected Exhibiting Companies 450 Over Trade Professionals 9000 On sq. mt. Floor-space 8500 From Countries 28 VENUE : Bangabandhu International Conference Centre, Dhaka. Bangladesh ORGANISED BY SUPPORTED BY Bangladesh Association of Pharmaceutical Industries Bangladesh Aushad Shilpa Samity OFFICIAL ONLINE MEDIA If South Asia is your market, APE 2011 is your show www.asiapharma.org 2011 DHAKA, BANGLADESH 24-26 FEBRUARY-2011 Bangladesh Association of Pharmaceutical Industries Bangladesh Aushad Shilpa Samity ORGANIZING COMMITTEE CHAIRMAN Mr. Salman F Rahman PRESIDENT'S MES SAGE Vice-Chairman, Beximco Group CONVENOR Mr. Adbul Muktadir We, Bangladesh Association of Pharmaceutical Industries (Bangladesh Aushad Shilpa Samity) are delighted to inform you about the forthcoming international exhibition on South Asian Pharmaceutical industry – ASIA PHARMA EXPO- 2011 to be held in Dhaka from 24 to 26 February 2011. The South Asian Pharmaceutical market is currently experiencing unprecedented growth and as a result the ASIA PHARMA EXPO provides unlimited opportunity to all related business and trade professionals. In all our previous Asia Pharma Expo events, the participants from neighboring countries and other parts of the world...
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...A “Calibrated Approach”: Pharmaceutical FDI and the Evolution of Indian Patent Law Web version: August 2007 Authors: Katherine Connor Linton and Nicholas Corrado1 Abstract India has charted its own intellectual property (IP) path over the last 35 years, attempting to foster the growth of a domestic pharmaceutical industry and access to medicine while, more recently, also addressing the requirements of the international IP regime. Multinational companies (MNCs) have responded to India’s movement towards compliance with the W TO intellectual property agreement, TRIPS, by increasing the quantity and quality of foreign direct investment (FDI) in the areas of pharmaceutical research and development (R&D) and manufacturing. By contrast, MNCs have adopted a more cautious attitude toward the patenting and commercialization of new pharmaceutical products in India, waiting to see how Indian courts and patent offices interpret the new laws, and awaiting the enactment of longdebated data protection legislation. The ultimate success of the Indian “calibrated approach” to fostering the domestic industry and access to medicine while also addressing international IP requirements remains to be seen. 1 Katherine Connor Linton (katherine.linton@usitc.gov) is the International Trade Analyst for Intellectual Property and Nicholas Corrado was a law student intern in the Office of Industries of the U.S. International Trade Commission (USITC). The views expressed are those of Ms. Linton and...
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...Industry Snapshot The Indian pharmaceutical industry is highly dynamic and offers great opportunities for both domestic and foreign companies. The industry is estimated to have generated revenue worth US$ 13.1 billion in FY 2011, according to a new Research and Market’s report, “Indian Pharma Sector Forecast 2014.” India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets, according to Ikon Marketing Consultant (IMC). Also, Associated Chambers of Commerce and Industry (Assocham) has said it expects the Indian pharmaceutical industry to reach US$ 20 billion by 2015, making it one of the world's top 10 pharmaceuticals markets. India has a strong local manufacturing base and domestic players are developing substantial international presence. Healthcare is also one of the largest service sector industries in India, in terms of revenue and employment. Rising health awareness and increasing government expenditure on healthcare sector is driving growth in the sector. Medical tourism and health insurance are also on a rise, with significant growth in healthcare sector and establishment of large number of hospitals, both public and private. The Indian healthcare industry, estimated at US$ 50 billion, is expected to reach over US$ 75 billion by 2012, and US$ 100 billion by 2015. Talent Challenges While specialised talent is critical for any knowledge industry, it is more so within the pharmaceuticals industry...
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...India’s Drug Industry pg. 187-188 (use the Hofstede dimensions in discussion why the companies or government made the decisions they did. 50% of your grade is answering the case questions. 50% of your grade is explaining how the Hofstede culture can explain the problem, actions taken and proposed solution) - Answer case question accurately (use chapter materials) - 50 points - Explaining how the Hofstede cultural dimensions influence the decisions taken (explaining the problem, actions taken and proposed solution) - 50 points How might (a) U.S. pharmaceutical companies (b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry? The U.S. pharmaceutical companies have major benefits from India exporting their generic drugs. Getting India to trade with America, has helped with cheaper prices in the pharmaceutical aspect. American pharmaceutical companies are protecting the revenues made and securing the boundaries of a competitive market. Having expansion of Indian pharmaceutical companies has also had a major impact on consumers of the U.S. When prices are lower, insurance prices decrease, cheaper visits at the doctor’s offices, and a decrease in expenses paid. The contribution of India will help America advance in the long-run. Since the U.S. has free trade with open markets, the U.S. is able to get the exports from India easily. India pharmaceutical companies have an absolute advantage over the U.S. pharmaceutical companies. India needs to...
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...Pharmaceutical industry The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications.[1] Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices. They are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. Indian Pharmaceutical Industry The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine. Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10.76 billion and this is likely to increase at a compound annual growth rate of 9.9 per cent until 2010 and subsequently at 9.5 per cent till the year 2015. | Industry Trends : * The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic Product growth * Globally, India ranks third in terms of manufacturing pharma products by volume * The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 % till 2015 * In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe followed by Central and Eastern...
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...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...
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...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. 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...
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...Economic Analysis 7 6) Chapter 2: Industry Analysis 9 * Industry Life Cycle * Porters 5 Forces * SWOT * PESTLE * Correlation 7) Chapter 3: Company Analysis 24 * Company Profiles (10 Companies) * Financial Ratio Analysis * DCF Valuation * Valuation Shares 8) Conclusion 74 9) Bibliography 76 RESEARCH OBJECTIVES Research Project Topic: “Analysis and Valuation of the Indian Pharma Sector” The research objectives of this specialization project are: 1) Identifying the key indicators of the Global Pharma Industry 2) Understand and analyze the Indian Pharma Industry and identify the prominent players. 3) To examine the trends in the pharma industry 4) Fundamental and Technical Analyses of the Top 10 pharma companies in India. The main objective of this study is: 1) Valuation of the Top 10 Pharma companies 2) Finding the correct share price of the company 3) Making investment decision of- Buying, Selling or Holding the stocks of the respective pharma company. EXECUTIVE SUMMARY * Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1...
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...MERGER & ACQUISITION IN INDIA: An Analytical Study by Harpreet Singh Bedi Sr. Lecturer, Department of Management Lovely School of Business Lovely Professional University Mobile no- 9855267392 Harpreet.bedi_lim@yahoo.com Electronic copy available at: http://ssrn.com/abstract=1618272 MERGER & ACQUISITION IN INDIA: An Analytical Study Abstract The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. Till recent past, the incidence of Indian entrepreneurs acquiring foreign enterprises was not so common. The situation has undergone a sea change in the last couple of years. Acquisition of foreign companies by the Indian businesses...
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...UNIFORM CODE OF PHARMACEUTICAL MARKETING PRACTICES The Indian Pharmaceutical Industry is one of the most rapidly growing science based industries in terms of remarkable capabilities in both the manufacture and technology. India being among one of the five pharmaceutical emerging markets has an average annual growth of 8-9 percent with an approximate worth of $ 4.5 billion. With more new drug launches, new drug applications, phase II clinical trials taking place this year the growth can be expected to be 13-14 percent in the future. Considering the rise in the pharmaceutical sector and to bring about uniformity in the marketing of these drugs, a Code has been introduced by the Department of Pharmaceuticals (DoP), Government of India. This code named as Uniform Code of Pharmaceutical Marketing Practices (UCPMP) was introduced on December 12, 2014 and became effective from January 01, 2015. UCPMP initially set to be a voluntary code for the Pharmaceutical Industries was then decided to be made as statutory Code when DoP was urged by the Organization of Pharmaceutical Producers of India (OPPI). UCPMP is expected to facilitate good marketing practices, increased levels of transparency and accountability across healthcare industry and remove ambiguity on all aspects of marketing by the pharmaceutical industries. The code covers various parameters like the general points to be followed by the industry, claims and comparisons related to other products, textual and audiovisual...
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...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...
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...Strategy Formulation & Implementation Ranbaxy Laboratories Ltd 1. Summary: Indian pharmaceutical industry is estimated at $8 billion in 2013 and had been growing at an average rate of 8–9 %. The industry was highly fragmented with more than 1000 players out of which 30% of market was controlled by top ten companies and the rest of 70% by small companies. The Global pharmaceutical industry was estimated at $ 600 billion in 2013. Indian pharmaceutical industry has become more innovative and enterprising with more investment in R&D especially since the WTO agreement was signed. Indian drug makers command 10 per cent share in the USD 30 billion US generic drug market and also has the highest (over 150) US Foods & Drug Administration (FDA) approved facilities. US accounts for one-fourth of the Indian drug exports. The share of Indian pharma companies in the total approvals for generic drugs called Abbreviated New Drug Application (ANDA) has risen steadily. From 32 per cent in 2009, it went up to 38.5 per cent in 2013. Increasing share of Indian companies in total ANDAs approved by the USFDA can be attributed to increase spending by them for research and development (R&D) activities. As per CMIE’s database, the industry’s R&D expenses to sales ratio jumped to around five per cent in 2012-13 from around three per cent in 2003-04. The export of drugs from India is expected to grow by 4.2 per cent to USD 15.2 billion in 2013-14. Around USD 16.3 billion of drugs are likely to be...
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