Indian Pharma Industry in 2020_An essay by M. Sivadharsha

                                         INDIAN PHARMA INDUSTRY IN 2020

SYNOPSIS:

·       Introduction.

·       Origin of pharma industry in India.

·       Increasing demand of pharma industry.

·       Development of Indian pharma industry.

·       Impact of pharma industry in medical field.

·       Significant trend of pharma industry in India.

·       Growth of pharma industry in India

·       Emerging data source in pharmaindustries .

·       Marketing of pharma industries in india.

·       Changing marketing style in pharma field with global market.

·       Investment rate on Indian pharma industry.

·       Increasing job opportunity in pharma field.

·       Indian pharma industry and global scenario.

·       Contribution of government over the Indian pharma industry.

·       Changing brighter side of Indian pharma industry.

·       Conclusion.

INTRODUCTION:

          “Wherever there is a growth inthe development of growth

             There exist the hidden treasure that is sprouting to shine”.

                       India’s Pharmaceutical industry is on a good growth path, Gearing up for the next level of growth.High burden of disease, good economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved healthcare financing are driving growth in the domestic market.However, for the industry to sustain this robust growth rate by the year of 2020, Indian pharma industries must  reform their business strategyin adopting new business models and think of innovative ideas to service their evolving customers in a faster and better. By the production and sale of generic drugs, Pharma is one of India’s top industries and expected to grow at a CAGR of 15% per annum between 2015 and 2020, decisivelyIndia’s pharmaceutical industry has grown by leaps and bounds in the last three decades. As a result, it has emerged as world’s third largest producer of drugs in terms of volume and 14th in terms of value.It is quite heartening to note that the pharma sector is out-performing most other sectors in achieving consistently high growth. India is now among the top five pharmaceutical emerging markets of the world.

ORIGIN OF PHARMA INDUSTRIES IN INDIA:

                         “ Without orgin men of science are soliders without arms”  

                           No science and medicine serves alone, The origin of pharma industries is very important for the development and flourishment of India.The first pharmaceutical company called Bengal Chemicals and Pharmaceuticals Works  was established by Prafulla Chandra Ray at Kolkata in the year 1931.There are some reasons that made India to develop its own pharma industry .The first and the foremost reason is thatthe patent was denied for the drug products.It was also designed with the foresight to provide the patients with quality medicines to treat the ailments.In the early days the cheaper drugs were imported to India that increased the demand for the indigenous drugs unheathy competition grew up in India and the Indian market was flooded with the inferior quality of drugs. There was also a pressurization from the public to the government for the control of  import ,manufacture,distribution and sale of drugs.there was no legal and effective control over the industries.The spread of the epidemic was more spread over the country and to treat them there came a need for the large quantity of drugs. Hence to bring all these issue to a conclusion the pharma industry was started in india and growing at a tremendous level and now Indiais the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India's core strengths.

INCREASING DEMAND OF PHARMA INDUSTRY

                          “Development concedes nothing without a demand:

                            It never did and it never will”

                                                                            -Karl Max

                           As lot of reforms had come into India our country had started opening up prosperity in increased demand and there is a steady development in the growth of pharmaindustries. The demand for the pharma industry is gradually increasing day by day .As the demand for the drugs increases the production and the industrial growth develops.In the modern world there is the risk of being subjected to major and minor health issues and in this case the demand of the production industry gains its demand.the increase in the expected life span has also created an impact on the pharmaceutical drug industrial pipeline.In the recent decades the pharma industry has expanded their geographical reach. he advancement in the manufacturing and technology ,innovation and integration  also have created a great impact over the pharma industries.

DEVELOPMENT OF INDIAN PHARMA INDUSTRY.

   “The growth and development of the country are the highest calling of leadership”

                      The path to the sustaining of the pharma industry travels a way long .Indian pharma is resisting the transition and it is on the right track of the development.the development of India’s pharmaceutical industry has played a significant role in boosting the availability and affordability of pharmaceuticals. With significantly lower manufacturing costs relative to those in developed countries.A number of policies introduced in the 1970s  underpinned the growth from a virtually non-existent pharmaceutical industry to becoming the world’s largest proDevelopment of India’s Pharmaceutical Industry. . India’s large pharmaceuticals industry now plays a vital role in the country’s economy employing around 500,000 directly and 1.9 million indirectly . In broad terms, the total industry output accounts for 1.3 per cent of the world market by value and around 8 per cent by volume .The difference in market share by value and by volume suggests that the Indian pharmaceutical products are priced low relative to the other products in the global market and this shows that  the Indian pharma industries are in their right track of development.  The significance of the increased industry output is that it helped India become almost self-sufficient in formulations and reduce dependency on previously imported bulk drugs. India now manufactures around 350 of the bulk drugs used in the domestic production of formulations . It is imperative that the industry product and the growth be kept in its true perspective.

IMPACT OF PHARMA INDUSTRY IN MEDICAL FIELD.

                            “Impact is the first factor in development devoted to industry

                             Without it nothing is possible with it nothing is impossible”

             The story of the Indian pharma sector could well have been like the IT sector if only enough attention was paid to its achievements and the huge impact it has had on healthcare around the world. Unlike other manufacturing or heavy industries in India, the pharma sector is innovative, widely acknowledged as making a global impact in the treatment of diseases like HIV AIDS and also able to support the healthcare needs of the world. India’s strength and expertise lies in developing drugs which are accessible for patients across the globe. India’s stand on IPR regime acknowledges that diverse countries cannot be forced to one uniform regulatory system.The current status of pharma industry in India is decent. However, there are ongoing changes in policy which can lead to confusion in business. "Government keeps on changing guidelines which may obscure manufacturers but it's a good sign also as we are moving towards better side of India. If we look at wider perspective.

SIGNIFICANT TREND OF PHARMA INDUSTRY IN INDIA.

                    “The good trend following system will expose industry  to people

                       Until there is the evident that the trend has change”

              The  trend of the pharma industry in India is changing rapidly .The pharma emerging markets increasing contribution to innovation .The growing importance of the emerging market can be no longer ignored in terms in terms of where the pharmaceutical industry is turning foe growth and profitability.Pharma companies around the globe are realizing that it is not enough anymore if they are producing and developing drugs. The trends show they have to go beyond the physical appearance of the medicine itself and offer a complete package.There is also the raising health care cost drive  the innovation.  Pharma and other medical companies are working on and how they communicate with fellow patients and their caregivers as they follow the companies on social media. Ecnomics and personalized medicine enable us to receive therapy customized to our own molecular makeup. Today’s healthcare cannot manage this complexity.there is a Growing conflict between access to medicines and affordability By using new and sophisticated apps, pharma companies in the pharmaceutical industry will be able to customize the new drug information much more quickly and easily, and demonstrate value to payers in new and engaging ways. Innovation will also be driven by an increase in collaboration across the pharma sector. To thrive in the increasingly competitive modern pharma market, companies will have to work together to develop innovative new products, services, and solutions, as well as share skills and expertise. The era of smaller and more frequent product launches continues.

GROWTH OF PHARMA INDUSTRIES  IN INDIA.

                                 “Growth is never by mere chance

                                    It is the result of forces working together”

                                                                                         - James Cash Penn

                If the economy continues to grow faster  than  those of the developed world and  the literacy rate keeps rising, around a third of the population (34%) is expected to join the middle class in the near  future. While these consumers still earn  substantially less  than  their US or European counterparts, they are rapidly acquiring the buying power  necessary to afford modern healthcare.

EMERGING DATA SOURCE IN PHARMA INDUSTRIES .

                                      “Development is the oil of 21^ST century and

                                         Data is the combustion engine”

                                                                                  - Peter Sondergaard

                            In the recent years, the explosion of data sources has provided unprecedented opportunities for pharmaceutical companies to garner vast sets of information on patients, diseases processes, and treatment. As the Harvard Business Review (HBR) has noted, “the biggest challenge by far has been talent.” This is because in recent years data is increasingly being generated from sources outside the clinical setting.The under lying  big data challenge facing the pharmaceutical industry is very similar to the challenges businesses are tacking across all sectors of the economy.Data exclusivity extends the term of monopoly enjoyed by patent holders and keeps out competition and innovation without any benefits to society. This concept does not exist in sectors other than pharma and there seems to be no real rationale for pharma to get special treatment. In fact, data exclusivity raises several ethical and moral issues. The data on volume sales would provide more accurate data on access to medicines in terms of the number of patients served the  Growth of the India pharmaceutical industry life  science hasbeen slower to incorporate data into its planning beyond sales and   customer attributes.

 

MARKETING OF PHARMA INDUSTRIES IN INDIA.

                   “ Good marketing makes the company look smart

                    Great marketing makes the customer feels smart”

                                                                                         - Joe Chernou

                  India’s pharmaceuticals industry looks set for solidlong-term growth. It already ranks fourteenth in the global market. This growth  will be driven by the expanding economy and  increasing per capita GDP. The domestic market is very fragmented; more  than  10,000 firms collectively  control  about 70%  of the market. Many of the local players are generics producers specialising in anti-infectives. In 1972,  the federal Government passed a law allowing local producers to manufacture drugs that were still under  patent, as long as they used different  processes. India’s manufacturing clout has  made it  a massive threat to established generics firms – India now produces more than  20%  of the world’s generics.Moreover, around US$70  billion worth of drugs are expected to go off patent in the US over the next three  years, and India is well-positioned to take a substantial share of the resulting new generics markets.

 Indian companies today  account for 35%  of the Abbreviated New Drug Application (ANDA) approvals granted by the US Food  and  Drug Administration .houses are now entering into strategic alliances with global  pharma companies to strengthen their generic    portfoliand  jointly market these drugs globally

CHANGING MARKETING STYLE IN PHARMA FIELD WITH GLOBAL MARKET:

                      “ Marketing momentum is about the everyday energy and revelence

                         That you keep pushing throughout the brand and organization”

                                                                                                     -Sheryl Adkins

                                 The globalization is a deep trend pushed up by the technology and development by the Indian pharma industries. The Indian pharma Industry produces about 20% of the global generic drugs with the US accounting for nearly 28 per cent of Indian pharmaceutical exports, followed by the European Union at 18 per cent and Africa at over 17 per cent. This should be a clear acknowledgement of the global leadership that Indian pharma industry has achieved which would have been impossible without following global quality standards. India is the largest provider of generic drugs globally with the Indian generics accounting for 20 per cent of global exports in terms of volume, according to pharma industry experts. The country is more focused on quality of drugs and medicines

INVESTMENT RATE ON INDIAN PHARMA INDUSTRY.

                              “Investment is the form of hardwork

                                 That always pay interest in the form of growth and success”

                     The investment is always needed for the development only when we employ the investment it readily works in bringing the growth.India already  offers a variety of tax concessions to the pharmaceutical sector, including  tax holidays for industrial  operations established in free trade  zones or under-developed areas; deduction of profits earned from exports; liberal depreciation allowances; deduction of capital  R&D expenditure; and  relief on all contribution to approved domestic research institutions. For pharma manufacturing units, there  is an additional weighted deduction of 200% for expenditures relating  to in-house R&D. Further, recently, a new provision  has  been added to provide  125% weighted deduction for expenditure incurred towards outsourcing of R&D activities Two factors underlie  this favourable outlook:  India’s demographic profile and a robust services sector. India’s population is currently  just over 1.1 billion and  projected to rise to 1.6 billion by 2050 – a 45.5% increase that  will see it outstrip China as the world’s most populous state. India has  also utilised its strengths in IT to become a major offshore business services provider, in marked contrast with most  of Asia, which has  relied on manufacturing for its recent growth.  As a result,  services now account for 64.5% of India’s GDP

INCREASING JOB OPPORTUNITY IN PHARMA FIELD.

                      “If we want to deliver opportunity for all

                     We need an economy that deliver job for future”

                                                                                                   -John Major

The  capabilities  in the Indian pharmaceutical industry have upgraded to cope with the challenges ahead. India’s strong position as a pharma supplier rests on its ability to provide high quality medicines back by strong innovation capabilities and a structural cost advantage. Despite inflationary trends, India’s labour cost advantage will sustain in the medium to long term, especially if Indian companies can improve productivity through operational excellence and digital initiatives The supply of local talent in to the pharma industry(e.g.,B.Pharm, M.Pharm, B.Sc. is stronger than in countries such as China . Indian pharma companies are for laying into complex products e.g., microspheres, liposomes, emulsions, building capabilities in R&D and the manufacturing of these products and providing lot of job oopurtunities to the younger generation. There are large opportunity in India Pharma to drive growth by building on the cost advantage, and improving reliability of supply—major buying criteria for customers.

INDIAN PHARMA INDUSTRY AND GLOBAL SCENARIO.

                           “The quality of the country is determined by the contribution of the industry

                            And when growth improves the country shines automatically”

                                                                               - Kurek Ashley

                          Industrial firms have made their ways into the global market by researching generic competitors to patented drugs and following up with litigation to challenge the patent. This approach remains untouched by the new patent regime and looks to increase in the future. Even though companies anticipated affair set of challenges in last few quarters, the sheer speed and impact of these has been overwhelming. Many leading generics players in India and globally shed up to 40 percentof their market capital in mere months due to a range of reasons from regulatory sanctions to litigation, impairment charges to generics market dynamics in the US, and raw material price volatility in China to evolving regulatory landscape in India. Indian pharma manufacturers have been ceding round on cost due to increasing complexity, remediation costs, additional controls, global supply market disruptions. To cope up with these margin pressures, the industry needs to improve manufacturing efficiency across the network and drive cost excellence initiatives across the spend base. Some successful pharmaceutical companies have pruned their cost structures by approximately 10 percent in a relatively short span of time. The recent technological shift has prompted the rapid rise of Advanced Analytics which is enabling companies to surface insights even with complex and unstructured data sets globally. Global players in the pharma industry cannot afford to ignore India. The country, many predict, will be the most popular in the world by 2020. India will make its mark as a growing market, potential competitor or partner in manufacturing and R&D, and as a location for clinical trials.

CONTRIBUTION OF GOVERNMENT OVER THE INDIAN PHARMA INDUSTRY.

                   “ The rewards in growth are in direct proportion to the contribution”

                 The health care has become one of the key priorities of the Indian Government and it has launched new policies and programmes to boost local access and affordable quality health care. The Indian Government’s Department of Pharmaceuticals has also initiated operations for a peoples’ medicines shop, called  ‘Jan Aushadhi,’ in various locations. These shops sell generic medicines at much cheaper rates than  the price of corresponding branded medicines.. While the Indian Government is strongly promoting biotech generally, concrete Government funding for stem cell research in India still lags far behindthat  provided in other  countries such as the US. There are also no laws per  governing stem cell research, although there  are specific guidelines which classify  stem cell use  into three categories: permissive, restricted,and  prohibited. The Indian Council of  Medical  Research is currently  drawing up plans  for a national  stem cellinitiative to promote clinical applications of stem cell research in ophthalmology, cardiology and  spinal  cord  repair,  and  build links between scientists and doctors. Insufficient  energy infrastructure and inadequate transport infrastructure has  historically  posed challenges for companies operating in India. The situation is definitely improving,  as the Government focuses attention on infrastructure needs.

CHANGING BRIGHTER SIDE OF INDIAN PHARMA INDUSTRY.

                          “If you focus on the result you will never change

                          If you focus on changes you get better results”

                                                   -Jack Henderson

The modern process for drug discovery and testing now generates very large quantities of data through computer modeling and simulations, genetic sequencing, and other data-intensive processes.  The vision, pharma  companies are under increasing pressure to document the efficacy of their products; tracking patient outcomes represents a further source  of large quantities of data.  In order to facilitate the storage, management, retrieval and analysis of this large pool of data,  a new subsector of the IT sector has emerged – bioinformatics. Tools have been developed which can help lower cost,  improve efficiency, and streamline the process of documenting a drug’s efficacy throughout development until launch and beyond. India’s strength in the IT sector  and its growing pharmaceutical sector  are driving growth of this emerging area. Stem cells are seen  by many as a powerful tool for improving the research and development process in the pharma industry. Stem cells are being used  to develop some  types of direct therapeutic applications; they are also becoming increasingly important as a tool to test potential drug toxicity.

CONCLUSION:

                  “ The scientific man  aim at an gradual growth

                   He works with the advanced ideas taken up by his foresight

                    His duty is to lay a strong foundation for the development of the country”

                                                                                        -Karl Max

               India’s pharma market is highly fragmented and  remains extremely price sensitive. Affordable healthcare  continues to pose a challenge, although there  are a number of healthcare initiatives by the Government underway to improve  the situation for India’s vast population. Indian courts and  regulatory authorities are very sensitive to pricing issues in making  decisions around intellectual property. Pharma companies coming  into India may need to consider a differential pricing. They will need to evaluate access to medicines, a volume-based pricing strategy and take into account gradually  increasing per capita incomes to come up with acceptable price levels for their drugs.All the factors are laeding the Indian pharma industry in devolpment path and its sure that India emerges to be the super power of the pharma industries in the world by 2020.