How to Get Started in Social Media for Art League City
FULL DETAIL OF SUN PHARMA & PHARMACEUTICAL INDUSTRY 2015
1. ERVAS PHARMACEUTICALS
HAVE NATURAL LIVE NATURAL
MISSION: ERVAS’ MISSION IS TO MAKE HERBAL -WELLNESS A PART OF EVERY HOME AND
TO CREATE BELIEF THAT GOOD HEALTH SHOULD BE ACCESSIBLE TO EVERYONE
4. PHARMACEUTICAL
INDUSTRY
The Indian Pharmaceutical Industry currently tops the chart
amongst India’s Science based Industries with wide ranging
capabilities in the complex field of drug manufacture and
technology.
A highly organized sector, the Indian Pharmaceutical Industry
is expected to expand at a CAGR of 23.9% by 2020.
It ranks very high among all the third world countries, in
terms of technology, quality and the vast range of medicines
that are manufactured
6. INCREMENTAL GROWTH OF INDIA-2015
INDIAN PHARMACEUTICAL INDUSTRY HAS REACHED TOP 3RD IN
INCREMENTAL GROWTH OF THE SECTOR AS COMPARED TO US(1ST PLACE)
AND CHINA(2ND PLACE)
7. CAGR REPORT-2015 ON INDIAN PHARMA
MARKET
INDIAN PHARMA MARKET IS LIKELY TO TRIPLICATE BY 2015
8. Between 2012-2018, the “patent cliff" will wipe an estimated
$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.
Issues for the Industry
9. SWOT Analysis Of Indian Pharmaceutical Industry
Strengths Weaknesses Opportunities Threats
•Low cost of skilled manpower
•Access to large pool of highly
trained scientists
•Strong marketing and
distribution network
•Proven track record in design of
high technology manufacturing
devices
•Low cost of innovation,
manufacturing and operations
•Stringent pricing regulations
•Poor transport and medical
infrastructure
•Lack of data protection
•Very competitive environment
•Poor health insurance coverage
•Production of low quality drugs
tarnishes image of industry
abroad
•Low investment in innovative
R&D
•Increase in per capita income
•Global demand for generics
rising
•Increasing population with more
sedentary lifestyle
•Increasing health insurance
sector
•Significant investment from
MNCs
•Medical tourism
•Cheap, diverse clinical trials
•Global outsourcing hub due to
low cost of skilled labor
•Other low cost countries
affecting demand
•Government regulations
changing
•Expanding of Drugs Price
Control Order
•Lack of investment in
infrastructure
•Wage inflation
•R&D restricted by lack of
animal testing and outdated
patient office
•Counterfeiting threat
10. GENERIC INDUSTRY
THE FOLLOWING ARE SOME OF THE GENERIC DRUG MANUFACTURERS
Actavis
Acura pharmaceuticals
Apotex
Aspen Pharmacare
Bio pharma
EMS
Galex
Getz pharma
Hikma Pharmaceuticals
Hospira
Incepta Phamraceuticals
Medinfar
North China pharmaceuticals group
corp
Perrigo
Ranbaxy Laboratories
Saidal
Simcere Pharmaceuticals
Stada Arzneimittrl
Sun Pharmaceuticals
Synthon
Teva Pharmaceuticals
Torque Pharmaceuticals
11. NON GENERIC INDUSTRY
THE FOLLOWING ARE SOME OF THE NON GENERIC INDUSRTRY IN PHARMACEUTICAL SECTOR
GLENMARK
ABOTT INDIA
BIOCON
ALEMBIC PHARMA
SANOFI INDIA
WOCKHARDT
PFIZER
NECTAR LIFE
AJANTA PHARMA
SHARON BIO MEDI
GRANULES INDIA
UNICHEM LABS
AARTI DRUGS
13. MODE OF ENTRIES OF FOREIGN PHARMAS TO INDIA
THE FOLLOWING ARE SOME OF THE FOREIGN MULTINATIONAL PHARMACEUTICAL COMPANIES WHICH CAME TO INDIA
THROUGH OUR INDIAN PHARMA COMPANIES . THEY ARE LISTED BELOW.
MULTINATIONAL PHARMA - INDIAN PHARMA
MERCK & CO - SUN PHARMACEUTICALS
PFIZER - AUROBINDO PHARMA, CLARIS LIFESCIENCES
STRIDES ARCOLABS
GLAXOSMITHKLINE - DR.REDDY’S LABORATORIES
ASTRAZENECA - TORRENT PHARMACEUTICALS , INTAS
PHARMACEUTICALS , AUROBINDO PHARMA
DAICHII SANKYO - RANBAXY
ABOTT - PIRAMAL HEALTHCARE
SANOFI AVENTIS - SHANTHA BIOTECH
MYLAN - MATRIX
RECKITT BENCKISER - PARAS
HOSPIRA - ORCHID
FRESENIUS KABI - DABUR PHARMA
14. MAJOR MEMBERS OF INDIAN PHARMA
INDUSTRY
The following are the major pharma companies in India . They are
CIPLA
DR.REDDY’S LABS
LUPIN
CADILA HEALTH
TORRENT PHARMA
GLAXOSMITHKLINE
JUBILANT LIFE
IPCA LABS
DIVIS LABS
SUN PHARMA
PIRAMAL ENTER
GLENMARK
ABOTT INDIA
BIOCON
ALEMBIC PHARMA
SANOFI INDIA
WOCKHARDT
PFIZER
NECTAR LIFE
AJANTA PHARMA
SHARON BIO MEDI
GRANULES INDIA
UNICHEM LABS
AARTI DRUGS
15. OUR COMPANY
OUR PROJECT IS ABOUT THE INDIAN PHARMACEUTICAL GIANT , SUN PHARMACEUTICALS
WHY SUN PHARMACEUTICALS ?
ACTUALLY IT IS A MILLION DOLLAR QUESTION WHY WE TOOK SUN PHARMA THAN SOME OTHER
COMPANY?
SUN PHARMACEUTICALS IS NOW THE TOP PHARMACUTICAL COMPANY IN INDIA. BUT IN 1983, WHEN
MR.DILIP SHANGHVI WHO WAS THE SON OF A DRUG WHOLESALE DEALER , HE SUDDENLY THOUGHT
THAT WHY INSTEAD OF DEALING WITH DRUGS , WHY DON’T WE PRODUCE IT??
THIS HAS MADE HIM TO START A PHARMACEUTICAL COMPANY WITH A VERY VERY SMALL CAPITAL OF
JUST ₹ 10000 . BUT NOW IT HAS AN ASSET VALUE OF RS.9816 CRORES WITHIN A DECADE. AND
MOREOVER , HE HAD MADE THE WHOLE WORLD TO TURN AROUND US AND MADE THEM FEEL THAT
THERE IS AN INDIAN PHARMACEUTICAL COMPANY THAT CAN COMPETE THE WORLD MARKET.
NOW , SUN PHARMACEUTICALS IS THE TOP 1ST PHARMACEUTICAL COMPANY IN INDIA AND TOP 5TH IN
WORLD GENERIC PHARMACEUTICAL MARKET.
THIS IS THE MAIN REASON WHY WE TOOK SUN PHARMACEUTICALS
16. SUN PHARMACEUTICALS (P) LTD
TAG LINE
LEADERSHIP THROUGH FOCUSED
RESEARCH
MISSION
MISSION OF GIVING AN IMPETUS TO
RESEARCH & DEVELOPMENT IN INDIA
VISION
TO DEVELOP MEDICAL RESEARCH IN
UPCOMING FUTURE
17. SUN PHARMACEUTICALS
SUN PHARMACEUTICALS LTD is a multinational Pharmaceutical company
headquartered in Mumbai, Maharashtra that manufactures and sells
pharmaceutical formulations and Active Pharmaceutical Ingredients (API) primarily
in India and in United States.
The company offers formulations in various therapeutic areas such as cardiology,
psychiatry, neurology, gastroenterology and diabology.
It also provides APIs such as warfarin, carbamazepine, etodolac, and clorazepate,
as well as anticancer, steroids peptides, sex hormones and controlled substances
Pharmaceutical Giant SUN PHARMACEUTICALS LIMITED
(NET PROFIT OF ₹ 2,828 CRORE IN FY14-15) has topped as No.1 Pharmaceutical
Industry in India in 2015 against its best rivals CIPLA LABORATORIES (NET PROFIT
OF ₹ 1,181 CRORE), LUPIN LABS (NET PROFIT OF ₹ 2,397 CRORES) DR.REDDY’S
LABORATORIES (NET PROFIT OF ₹ 1,679 CRORES) AND ETC..
18. HISTORY OF THE COMPANY
Established by MR.DILIP SHANGHVI in 1983 in VAPI with five
products to treat psychiatry ailments.
Cardiology products were introduced in 1987 followed by
Gastroenterology products in 1989.
Today it is the largest chronic prescription company in India and a
market leader in psychiatry, neurology, cardiology, orthopedics,
ophthalmology, and gastroenterology and nephrology
At present, SUN PHARMA has a net income of ₹2,828 crores and
with Total Asset value of ₹9816 crores and the current market
price of a share is ₹927.25 per share (as on 19/08/2015)
19. BOARD OF DIRECTORS
ISRAEL MAKOV DILIP SHANGHVI SUDHIR V. VALIA SAILESH T. DESAI
HASMUKH S SHAH KEKI M MISTRY ASHWIN DANI MOHANCHAND
21. GLOBAL PRESENCE
With global revenues of over US$ 4.5 billion, SUN PHARMA is the fifth largest
specialty generic pharmaceutical company in the world. They provide high
quality affordable medicines trusted by healthcare professionals and patients in
over 150 countries worldwide. Sun pharma also includes the largest and most
trusted pharmaceutical company. Their global presence is supported by 45
manufacturing facilities across 5 continents.
In the US market contributes a significant share of or revenues, they are the
leader in the generic dermatology segment,. They have strong capabilities in
developing generic and complex products with a robust pipeline of 149 ANDAs
including high value first-2-file (FTF) opportunities. They have an established
presence in Europe and key high growth emerging markets like Russia , Romania ,
south Africa , brazil and , Malaysia.
22. LOCATIONS
HEADQUARTERS – GUJARAT
CORPORATE OFF – MUMBAI
FACTORY PLANTS - Dadra &Nagar havelli
Gujarat
Maharashtra
Kanchipuram
Andheri
Jammu & Kashmir
Ohio – US
New jersey – US
Michigan –US
Bangladesh
Hungary
Sikkim
Mexico
23. PRODUCTS PRODUCED
They produce drugs for the following categories of treatments. They are
Psychiatry
anti-infective
Neurology
Cardiology
Orthopaedic
Diabology
Gastroenterology
Ophthalmology
Nephrology
Urology
Dermatology
Gynaecology
Respiratory, oncology, dental and nutritionals
24. POLICIES & PROGRAMS
SUN PHARMA has many policies and programs . Some
of them are listed below
Whistleblower policy for SPIL & Indian Subsidiaries
Whistleblower policy for Global Subsidiaries
Ranbaxy Disclosure program
Ranbaxy Disclosure policy.
25. COMPETITORS
SUN PHARMA has large number of competitors throughout the world . Some of
them are mentioned here and they will be briefed in upcoming slides
27. BOARD OF DIRECTORS-LUPIN
DESH BANDHU GUPTA – CHAIRMAN
KAMAL K SHARMA – VICE CHAIRMAN
M D GUPTA – EXECUTIVE DIRECTOR
NILESH GUPTA – MANAGING DIRECTOR
VINITA GUPTA – CEO
K U MADA – DIRECTOR
R A SHAH - DIRECTOR
VIJAY KELKAR – DIRECTOR
RICHARD ZAHN – DIRECTOR
R V SATAM – COMPANY SECRETARY
DILEEP C CHOKSI – DIRECTOR
SREERAM PADMANABHAN – DIRECTOR
33. BOARD OF DIRECTORS-AUROBINDO
K. RAGHUNANTHAN – INDEPENDENT & NON EXECUTIVE DIRECTOR
K.NITHYANANDA REDDY – WHOLETIME DIRECTOR & VICE CHAIRMAN
PV.RAMAPRASAD REDDY – NON EXECUTIVE DIRECTOR
M.SIVAKUMARAN – WHOLETIME DIRECTOR
M.MADHAN MOHAN REDDY – WHOLETIME DIRECTOR
N.GOVINDARAJAN – MANAGING DIRECTOR
M.SITARAMA MURTHY – INDEPENDENT DIRECTOR
D.RAJAGOPALA REDDY – INDEPENDENT DIRECTOR
P.SARATH CHANDRA REDDY – NON EXECUTIVE DIRECTOR
DR.AVNIT BIMAL SINGH – INDEPENDENT DIRECTOR
37. EXIT OF PHARMA COMPANIES
ADVANCE LIFE SCIENCE
EXIT – MAY 2009
REASON – THEY COULD NOT OBTAIN RESPONSE FROM US FOOD & DRUG ADMINISTRATION FOR TREATMENT OF PNEUMONIA
ALTAIR THERAUPETIC INC
EXIT – 2009
REASON – SINCE THE INHALED ANTISENSE ASTHMA DRUG DIDN’T SHOW ANY BENEFIT
AMBRILIA BIOPHARMA
EXIT – 2008
REASON – TRIALS FOR A DRUG TO TREAT ACROMEGALY WAS PUT ON HOLD BY MERCK FOR LONG YEARS
ARYx THERAUPETICS
EXIT - 2010
REASON – SINCE THE BLOOD CLOTTING COMPOUND SHOWED NO IMPROVEMENT AND FDA DELAYED IN GIVING LICEMSE
PHENOMIX CORPORATION
EXIT – 2010
REASON – FOREST LAB WITHDREW ITS DEAL
38. EXIT OF COMPANIES (CONTD)
PEPTIMUNE
EXIT –
REASON – SINCE MERCK SERENO BOUGHT THE FULL RIGHTS OF PI-2301
TOLERX
EXIT – 2007
REASON – THE DRUG NAMED OTELIXIZUMAB DIDN’T SHOW ANY POSITIVE DEVELOPMENT
TRANSDEL PHARMACEUTICALS
EXIT –
REASON - WENT TO BANKRUPTCY AFTER SLOW DECLINE OF OTS PRODUCTS
39. MERGERS OF PHARMA COMPANIES
DEFINITION :
THE COMBINING OF TWO OR MORE
CMPANIES , GENERALLY BY OFFERING THE
STOCKHOLDERS OF ONE COMPANY’S
SECURITIES IN THE AQUIRING COMPANY IN
EXCHANGE FOR THE SURRENDER OF THEIR
STOCK
40. TYPES OF MERGERS
Horizontal merger
Horizontal merger is a business consolidation that occurs between firms who operate in the
same space, often as competitors offering the same good or service.
Vertical Merger
A vertical merger occurs when two or more firms, operating at different levels within an
industry's supply chain, merge operations. Most often the logic behind the merger is to
increase synergies created by merging firms that would be more efficient operating as one.
Conglomerate merger
A merger between firms that are involved in totally unrelated business activities. There are
two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve
firms with nothing in common, while mixed conglomerate mergers involve firms that are
looking for product extensions or market extensions.
41. EXAMPLES OF MERGERS
YEAR ANNOUNCED ACQUIRER/RESULTANT
COMPANY
TARGET/MERGING
COMPANIES
ANNOUNCEDTOTAL VALUE($.bn)
2000 GLAXOSMITHKLI
NE
SMITHKLINEBEECHA
M+
GLAXO WELLCOME
72.4
1998 ASTRAZENECA ASTRA+ZENECA 30.4
1996 NOVARTIS CIBA-GEIGY+SANDOZ 29
1999 PHARMACIA PHARMACIA&UPJOH
N+
MONSANTO
25.2
42. ACQUISITION OF PHARMA COMPANIES
DEFINITION :
When one company takes over another and clearly established itself as the
new owner
TYPES OF ACQUISITION
. Friendly Acquisition:
Both the companies approve of the acquisition under friendly terms.
Reverse Acquisition:
A private company takes over a public company.
Back flip Acquisition:
The purchasing company becomes a subsidiary of the purchased company
43. EXAMPLES OF AQUISITION
Announced Date Value in $ million
Acquirer Acquired Firm
Name Country Name Target nation
18 Feb 2014 28,407 Actavis plc United States Forest Laboratories Inc United States
22 April 2014 54,652.
Valeant Pharmaceuticals
International Inc
Canada Allergan Inc United States
22 April 2014 23,050
Novartis AG, GlaxoSmithKline
plc
Switzerland, United Kingdom
GlaxoSmithKline's oncology
portfolio, R&D activities & AKT
inhibitor rights / Novartis'
vaccines business
United Kingdom
6 May 2014 14,200 Bayer AG Germany
Merck & Co Inc (Consumer Care
Business)
United States
20 June 2014 56,064.4 AbbVie Inc United States Shire plc United Kingdom
30 June 2013 10,248.2 Amgen Inc United States ONYX Pharmaceuticals Inc United States
19 May 2011 13,682 Takeda Pharmaceutical Co Ltd Japan Nycomed SCA SICAR Switzerland
21 July 2011 35,017.9 Express Scripts Inc United States Medco Health Solutions Inc United States
21 November 2011 11,017.1 Gilead Sciences Inc United States Pharmasset Inc United States
29 August 2010 24,476.7 Sanofi-Aventis SA France Genzyme Corp United States
44. TAKE-OVERS
DEFINITION
When an acquiring company makes a bid for a target
company. If the takeover goes through, the acquiring
company becomes responsible for all of the target
company’s operations, holdings and debt. When the
target is a publicly traded company, the acquiring
company will make an offer for all of the target’s
outstanding shares.
45. TYPES OF TAKE-OVERS
TYPES OF TAKE-OVERS :
'Friendly Takeover' - the company bidding will approach the directors of the other
company to discuss and agree an offer before proposing it to the shareholders of that
company.
The bidding company will also have an opportunity to look at the accounts of the
business they want to buy - a process known as due diligence.
'Hostile Takeover' - the company bidding has their offer rejected or does not approach
the board of the company they wish to buy before making an offer to shareholders.
This also means they will not have access to private information about the company -
increasing the risk of the takeover. Banks are usually more cautious about lending
money for hostile takeovers.
'Reverse Takeover' - the final common type of takeover is the reverse takeover. This
happens when a private (not traded on the stock market) company buys a publicly-
traded company as a means of acquiring public status without having to list itself
46. EXAMPLES OF TAKE-OVERS
ZS PHARMA ACQUIRED ACTELION
PFIZER AQUIRED GSK’S MENINGOCOCCAL ACWY VACCINES
HORIZON PHARMA OF IRELAND ACQUIRED DEPOMED
MYLAN OF NETHERLAND ACQUIRED PERRIGO
CONCARDIA FROM CANADA ACQUIRED AMDIPHARM MERCURY
US BASED PURDUE PHARMA ACQUIRED TRKA PROGRAM OF VM PHARMA
CIPLA OF INDIA ACQUIRED INVAGEN AND EXELAN
PFIZER AQUIRED HOSPIRA
ALLERGAN TO ACQUIRE AQUESYS
LANNET ACQUIRED UCB’S KREMER URBAN GENERIC UNIT
AMICUS THERAUPETICS AQUIRED SCIODERM
SUCAMPO PHARMACEUTICALS AQUIRED R-TECH UENO
47. SUCCESSFUL ENTREPRENEURS
MR.BINISH CHUDGAR
INTAS PHARMACEUTICALS
INCORPORATED IN 1976
HEAD OFFICE- AHMEDABAD
ESTD.WEALTH - $2.79 BILLION
FINISHED FORMULATIONS AND BIOLOGICS
MR.PV.RAMPRASAD REDDY
AUROBINDO PHARMA
INCORPORATED IN 1986
HEAD OFFICE – HYDRABAD
ESTD.WEALTH - $2.26 BILLION
BULK AND FINISHED GOODS
MR.MURALI.K.DIVI
DIVI’S LABORATORIES
INCORPORATED IN 1990
HEAD OFFICE – HYDERABAD
ESTD.WEALTH - $1.93 BILLION
APIs AND INTERMEDIATES
48. SUCCESSFUL ENTERPRENEUR(Contd.)
MR.SAMPRADA SINGH
ALKEM LABORATORIES
INCORPORATED IN 1973
HEAD OFFICE – MUMBAI
ESTD.WEALTH - $1.69 BILLION
PHARMACEUTICAL FINISHED FORMULATIONS
DR.AZAD MOOPEN
ASTER DM HEALTHCARE
INCORPORATED IN 1987
HEAD OFFICE – KOCHI
ESTD.WEALTH - $1.54 BILLION
HOSPITALS AND DIAGNOSTIC CENTRES
MR.DILIP SURANA
MICRO LABS
INCORPORATED IN 1973
HEAD OFFICE – CHENNAI
ESTD.WEALTH- $1.49 BILLION
BRANDED DRUGS AND APIs
49. PRODUCTS OF SUN PHARMA
THERAUPETIC AREAS PRODUCTS
NEUROLOGY&PSYCHIATRY ACAMPROL
ADCAPONE
ALCOLIV
AMIXIDE
CARDIOLOGY AMLOBET
AZTOR EZ
AQUAZIDE 12.5
ANGIZEM 30
ORTHOPAEDIC BENZADAY 15
GASTEROENTEROLOGY ALCAINE-MPS 200ML 1 BTL
UROLOGY TROFAME XR
GYNOCOLOGY AFDURA
RESPIRATORY AB PHYLLINE
AQUAMET NASAL SPRA
AB PHYLLINE SYRUP
50. BRANDS OF SUN PHARMA
THE MAJOR BRANDS OF SUN PHARMA ARE AS FOLLOWS
51. GOVERNMENT POLICIES ON PHARMA INSUSTRY
PHARMACEUTICAL POLICY 2002
INDUSTRIAL LICENSING
FOREIGN INVESTMENT
FOREIGN TECHNOLOGY AGREEMENTS (FTA)
IMPORTS
PRICING
QUALITY ASPECTS
PHARMA EDUCATION AND TRAINING
NATIONAL PHARMACEUTICAL PRICING POLICY 2012
DRUG POLICY 1986
53. IMPACT OF REGULATIONS ON PHARMA INDUSTRY
RECENT REGULATIONS OF THE GOVERNMENT THAT HAS IMPACT ON THE PHARMA
INDUSTRY ARE LISTED BELOW
Move to establish an integrated regulatory system through the constitution of
a National Drug Authority so that quality regulation and price control is
performed by the same agency
Establishment of pharmacy vigilance centres at national, zonal and regional
levels to monitor adverse drug reactions
Move to bring nearly 374 bulk drugs under price control and regulate trade
margins
Capability strengthening to monitor clinical trials, including the setting up
of the Clinical Trials Registry of India (CTRI)
54. RECENT REGULATIONS & ITS IMPACT ON
SUNPHARMA
National Program for Prevention and Control of Fluorosis (NPPCF)
National Tobacco Control Program (NTCP)
National Program for Health Care of the Elderly(NPHCE)
National Leprosy eradication program
Cancer Control Program
Cardio Vascular Diseases Eradication Program
55. INFLATION
DEFINITION:
Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year
basis. It effectively measures the change in the prices of a basket of goods and services in a year. In
India, inflation is calculated by taking the WPI as base.
CAUSES OF INFLATION:
DEMAND PULL INFLATION
Depreciation on rate change
Monetary stimulus to the economy
Fast growth in other countries
COST PUSH INFLATION
Component cost
Rising labor cost
Higher indirect taxes
A fall in the exchange rate
56. Inflation & Its Impacts on Pharma Industry
Shift towards a Networked business model. Increasing M&A and
alliances Consolidation in the market
INCREASE
INVESTMENTS & MNC
ACTIVITY
Seen as the next volume driver, though costs of operation is high due
to poor health infrastructure
INCREASE REACH IN
NON METRO MARKETS
Though delayed from its April 2010 implementation date, GST will add
significant efficiencies to economy and lead to an overhaul of supply
chain
GOODS & SERVICES
TAX
More numbers of patients will be coming in for treatment
GROWING INSURANCE
Shift towards biotech & speciality therapies, • increased investment
in R&D and acute disease segment will sustain strong growth
CHANGING DISEASE
PROFILE
Use of technology & IT for innovation in healthcare delivery • e.g.
Mobile clinics
HEALTH CARE
INNOVATION
57. DEFLATION
DEFINITON:
A general decline in prices, often caused by a reduction in the supply of money or credit.
Deflation can be caused also by a decrease in government, personal or investment spending. The
opposite of inflation, deflation has the side effect of increased unemployment since there is a
lower level of demand in the economy, which can lead to an economic depression. Central banks
attempt to stop severe deflation, along with severe inflation, in an attempt to keep the
excessive drop in prices to a minimum.
CAUSES OF DEFLATION:
Change in structure of capital market
Increased productivity
Decrease in currency supplies
Austerity measures
58. Deflation & its Impacts on Pharma Industry
During the time of deflation, pharmaceutical industries face many problems. They are as
follows:
Deflation will reduce the Foreign Direct Investments (FDI) because usually none of the
investors will invest if there is a deflation in that country. Thus research &
development on pharmaceutical sector will be reduced.
Deflation reduces the purchasing power of the people. At the time of inflation, income
earned by the people will be reduced. Thus they cant afford to buy costly medicines.
Thus the pharma companies have to reduce the price of the medicines. It will create
loss to the company.
During deflation, the share prices of the pharmaceutical companies will be reduced. It
will affect the global market scenario.
At the time of deflation, Government will reduce all the subsidies given to the
pharmaceutical companies for research & development.
59. RECESSION
DEFINITION:
A significant decline in the activity across the economy, lasting longer than a few
months. It is visible in industrial production, employment, real income, and
wholesale retail trade. The technical indicator of a recession is two consecutive
quarters of negative economic growth as measured by a country’s GDP.
EFFECTS OF RECESSION:
Uncertain exchange rate and a sudden increase in dollar value against indian
rupees.
Delayed payment
Pharmaceutical products also doesn’t decrease.
60. STOCK MARKET
Stock market is the place where the shares are being traded by the people and the companies. The main
regulatory of the stock market is SECURITIES EXCHANGE BOARD OF INDIA (SEBI).
SECURITIES EXCHANGE BOARD OF INDIA
The following are some of the functions of SEBI. They are:
Protective function
It Checks Price Rigging
It Prohibits Insider trading
SEBI prohibits fraudulent and Unfair Trade Practices
Development function
Training to intermediaries
promotional activities
Regulatory function
framed rules and regulations
restrictive on private placements
conducts inquiries
63. REGULATORY OF PHARMA INDUSTRY
OBJECTIVE OF THE REGULATORY:
The present study describes a brief review of various
regulatory bodies of major developed and developing
countries around the world and the scope and challenges of
such pharmaceutical regulatory organizations in delivery of
safe and effective healthcare products
MAJOR REGULATORY OF PHARMA INDUSTRY
The major regulatory of pharma industry in India is
CENTRAL DRUG STANDARD CONTROL ORGANISATION
64. REGULATORY AUTHORITY
Country Name of Regulatory Authority
USA Food and Drug Administration (FDA)
UK
Medicines and Healthcare Products Regulatory
Agency (MHRA)
Australia Therapeutic Goods Administration (TGA)
India
Central Drug Standard Control Organization
(CDSCO)
Canada Health Canada
Europe European Medicines Agency (EMEA)
Denmark Danish Medicines Agency
Costa Rica Ministry of Health
New Zealand
Medsafe - Medicines and Medical Devices Safety
Authority
Sweden Medical Products Agency (MPA)
Netherlands Medicines Evaluation Board
Ireland Irish Medicines Board
Italy Italian Pharmaceutical Agency
Nigeria
National Agency for Food and Drug Administration and Control
(NAFDAC)
Ukraine Ministry of Health
Singapore
Centre for Pharmaceutical Administration Health Sciences
Authority
Hong Kong Department of Health: Pharmaceutical Services
Paraguay Ministry of Health
Sweden Medical Products Agency (MPA)
Thailand Ministry of Public Health
China State Food and Drug Administration
Germany Federal Institute for Drugs and Medical Devices
Malaysia National Pharmaceutical Control Bureau,Ministry of Health
Pakistan Drugs Control Organization, Ministry of Health
South AfricaMedicines Control Council
Sri Lanka SPC,Ministry of Health
65. CONCLUSION
INDIAN PHARMACEUTICAL INDUSTRY PLAYS A MAJOR ROLE IN INDUSTRIAL SECTOR IN
DEVELOPING THE COUNTRY AS WELL AS MAKING THE WHOLE WORLD MARKET TO TURN
AROUND TO SEE OUR COUNTRY.
SUN PHARMACEUTICALS HAS A MAJOR PART IN DEVELOPMENT OF INDIAN
PHARMACEUTICAL INDUSTRY BY PRODUCING DRUGS FOR MAJOR THERAUPETIC
TREATMENTS WHICH IS SUPPORTED BY MORE THAN 150 COUNTRIES AND 5
CONTINENTS. IT IS EXPECTED THAT SUN PHARMA WILL BECOME TOP 1ST
PHARMACEUTICAL COMPANY IN THE WORLD MARKET BY 2020.
