2. 1. Introduction
2. About Indian Pharma
industries
3. Growth of Pharma
industries
4. Key players
5. PESTELEE Analysis
3. INTRODUCTION
ď˘ Rapid Growing sectors of the Indian economy.
ď˘ Producer of low cost high quality bulk drugs and
formulations.
ď˘ The total market size of Rs. 1,233 bn ( domestic
Rs.600 bn~48.6%) and exports Rs. 633 bn ~51.4%).
ď˘ The industry grew at a CAGR of ~12.5% during the
past five years and is expected to growth at a robust
ď˘ CAGR of 15.1% during FY2012-17 given huge
export potential.
ď˘ Steady growth in the domestic formulation market.
4. GROWTH OF THE INDUSTRY
ď˘ Worth of the Pharma industry â $ 6 billion
ď˘ Accounts for - 1% of the world's Pharma industry in value
terms and 8% in volume terms. .
ď˘ Revenues generated - US$ 7.6 bn and have grown at an
average rate of 10% over last five years
ď˘ India is now among the top five pharmaceutical emerging
markets
ď˘ expected to grow five-fold to reach Rs 5 lakh crore (US$ 91.45
billion) by 2020
6. PESTEL ANALYSIS
ď˘ A PEST analysis is concerned with the
environmental influences on a business.
ď˘ The acronym stands for the Political, Economic,
Social and Technological
ď˘ These issues affect the strategic development of a
business.
ď˘ Identifying PEST influences is a useful way of
summarizing the external environment in which a
business operates
7.
8. POLITICAL
ď˘ There is now growing political focus and pressure on
healthcare authorities across the world. This means that
governments will be looking for savings across the board.
-What pressures will be put on pricing?
-What services will be cut?
-Will the same selection of drugs be available to everyone?
ď˘ Political uncertainty â no consistent policy.
ď˘ Stringent Price Control .
9. SOCIAL
ď˘ The increasing aging population offers a range of
opportunities and threats, trick will be to capitalize on
the opportunities.
ď˘ There is also the problem of the increasing obesity
amongst the population and its associated health risks.
ď˘ Patients and home carers are becoming more informed.
Their expectations have changed and they have
become more demanding.
ď˘ Public activism has also increased through the
harnessing of new social networking technologies.
ď˘ How can pharmaceutical companies get closer to
consumers without over stepping the regulatory
boundaries?
10. ECONOMICAL
ď˘ The global economic crisis still exists yet government
reports still show that the spend on healthcare per
capital continues to grow.
ď˘ The reduction in consumer disposable income will have
an impact on those countries using health insurance
models particularly where part payment is required.
ď˘ These economic pressures are seeing an increased
growth in strategic buying groups who are forcing down
prices.
ď˘ Increased pressure from shareholders has caused a
consolidation of the industry: more mergers and
acquisitions will take place over the coming years.
11. TECHNOLOGICAL
ď˘ Technological advancements will create new
business prospects both in terms of new therapy
systems and service provisions. The online
opportunities will see the growth in:
ď˘ New info and Communications technologies.
ď˘ Social Media for Healthcare.
ď˘ Customized Treatments.
ď˘ Direct to Patient Advertising.
ď˘ Direct to patient communications.
12. ENVIRONMENTAL
ď˘ There is a growing environmental agenda and the
key stake holders are now becoming more aware of
the need for businesses to be more proactive in this
field.
ď˘ Pharma companies need to see how their business
and marketing plans link in with the environmental
issues.
ď˘ There is also an opportunity to incorporate it within
their Corporate Social Responsibility programmes.
Marketing and new product development should
identify eco opportunities to promote as well.
13.
14. Strengths :-
1.Cost Competitiveness
2 Developed Industry with Strong
Manufacturing Base
3.Well Established R&D infrastructure
4. Access to pool of highly trained
scientists,
Opportunities :-
1. Significant export potential.
2. Marketing alliances for MNC products in
domestic market and international market.
3.Contract manufacturing arrangements with
MNCs
Weaknesses:-
1. Low investments in innovative
R&D.
2. Lack of resources to compete with
MNCs for New Drug Discovery &
Research
3. Lack of strong linkages between
industry and academia.
Threats :-
1.Product patent regime poses serious
challenge to domestic industry unless it invests
in research and development
2. R&D efforts of Indian pharmaceutical
companies hampered by lack of enabling
regulatory requirement
3. Export effort hampered by procedural
hurdles in India as well as non-tariff barriers
imposed abroad.