Indian Pharmaceutical

Industry
Big Pharma Jobs
(Division: Big Ideas HR Consulting Pvt. Ltd.)

Industry background
The global sales of medicines reached $942 billion in
2011.

O This total is expected to

reach $1.5 trillion by

2020, due to an increase
in population of 7.6
billion people, 13% of
which will be over 60.

Issues for the Industry

O Between 2012-2018, the patent cliff" will wipe an estimated

O
O
O
O

$148 billion off pharmaceuticals industry revenues due to

many drugs coming out of patents
Rising cost of R&D, the cost of bringing a molecule to market
globally is estimated to be from $800 million to $4 billion.
On average, out of every 10,000 molecules been developed;
only one or two are likely to reach the market.
Increasing government pressure, with harsher price controls
and taxes.
European Medical Agency (EMA) and the US Food and Drug
Administration (USFDA) are focusing on risk management;
thereby putting pressures on profitability of pharmaceutical
companies.

The Indian Pharmaceutical

Industry
O The Indian pharmaceuticals industry has grown from

a mere $0.3billion in 1980, to $12 billion in 2012.

O Branded generics dominate the market, making up
70-80% of it.
O The local companies enjoy a dominant position due
to their development capabilities and early
investment, as from 1970 to 2005, Indian law only
recognized process patents and not product patents,
which many companies took advantage of.
O The price of drugs is very low, due to intense
competition. While India is 10th globally in terms of
value, it is 3rd in term of volume of drugs produced.

Indian Pharmaceutical Companies

Imports and Exports
9
8
7

Imports
Exports

US $/Bn

6
5

4
3
2
1
0

Year

Source: Ministry of Chemicals & Fertilizers,

Department of Pharmaceuticals

The Indian Set-Up

O The Indian pharmaceutical sector is highly

fragmented, with more than 20 000

registered companies, with the top 250
companies controlling 70% of the market.
These companies can currently meet about
70% of the countries demands for drugs;
this is mainly through the Maharashtra and
Gujarat regions, which account for 45% of
the total number of pharmaceutical
manufacturing units in India.

SWOT Analysis Of Indian

Pharmaceutical Industry

Investment Comparison
9000
8000

20

Per Capita Spent on Healthcare

18

% GDP Spent on Healthcare

16

7000

14

6000

12

5000

Per Capita
US $
4000
3000

10 % GDP

8
4.1

2000
1000
0

6
4

132

2
0

Source: theguardian.com/news/datablog/2012/jun/30/healthcare-spending-world-country

Private Spending on Healthcare as

a % of Total Spending

Growth Factors for Indian

Market
Population Growth
Socio Economic Changes and Urbanization
Increasing acceptability of modern medicine
More affordably drugs
More accessibility to drugs and medical care
Cheap production cost
Government regulations targeting growth and
competitive market
O Contract R&D
O Medical Tourism
O
O
O
O
O
O
O

Key Players Locally

International Players