Pharmaceutical Industry Profile

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INDUSTRY PROFILE The pharmaceutical sector- globally and in India- has been evolving rapidly. This industry has witnessed rapid transformation and growth. Especially in India, the growth has been significant. Starting from a rather small amount of Rs. 10 crore in the late 1940s, the pharmaceutical industry registered a turnover of over 6 billion dollars, as of 2004. The annual growth rate has been over 17%. The Government policies and acts supportive of growth and development of the pharmaceutical industry gave been instrumental in this transformation. The evolution of the industry in India has been studied by several researchers. Using this research as the basis, the evolution can be divided into four significant and principal epochs- 1850…show more content…
Technological factors have furthered the possibility of growth in our country. However, today, the industry seems to be at a crossroad: on one hand, the opportunities are plenty and developed markets are opening up new boundaries and on the other hand, the introduction of the new product patent regime has posed many challenges. Across the globe, various countries have been focusing on reducing the costs of healthcare to ensure that it is more far reaching and accessible. Indian experts can use this opportunity to use approved facilities and sound knowledge of patent/regulatory issues and manufacture relevant drugs for the use and benefit of the nation. Besides, the impending expiry of significant drug patents in the near future also offers opportunities for lower cost Indian generic manufacturers in terms of greater market…show more content…
Especially, the last two decades have been the most dramatic. The leading 250 pharmaceutical companies control over 70% of the market with the leader holding 7% of the market share. The result of this fragmentation and distribution has been severe price competition and increased Government control to avoid any form of injustice. Studies show that India is about 6 billion of the 550 billion dollar industry across the globe. However, the times are changing. The annual growth rate that used to be at 7% has risen to over 10%. India stands at the fourth place worldwide, as a market leader by having about 8% of the total share. It also accounts for 13% by value (Organisation of pharmaceutical producers of India, 2004), and its drug exports have been growing by 30% annually (Indian Government National Pharmaceuticals Policy, January

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