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B.V. Patel Pharmaceutical Education and Research Development (PERD) Centre

INTRODUCTION

Mankind has been so transfixed by the idea of achieving arogya that one of the most enduring pursuits has been to discover a panacea that can cure all ailments. This search transcends all borders, class, color and creed of people. All across the globe, native system of medicine based on traditional ethnic lore have been developed and practiced till today.

Advances in the field of organic chemistry led to the development of the allopathic system of medicine, or what is known as modern medicine today. This system became so popular world over within a short span of time, that today the pharma industry plays a key role in world economy. Pharma industries are involved in finding out new drugs and molecules for various therapeutic areas. Pharmaceutical is a continuous growth industry, immune to economic recession and commodity cycles. Rising population, new disease incidence or resurgence of certain diseases spur the growth. Therapeutic uses of the pharmaceuticals varies across the globe.

The global pharma industry , presently valued at US$ 420 billion, is projected to grow at CAGR of 8% per annum in next 5 years. Growth rates differ across nations, with the developing nations like South Korea, Taiwan and India notching high growth in the range of 12-15% per annum.

Governments of both developed and developing countries overview the production and distribution of the industry. Though the degree and nature of this regulation by governments vary among countries. The industry is also substantially dependent on research and development on a continuous basis. Pharma industry is a typical case where research and development and profitability are interrelated. Increasingly research and development has come to "dictate profitability" and profitability in turn will govern the scale and scope of R & D expenditure. The need for firms to recoup the huge and growing costs of research and drug development has made protection of intellectual property rights an impending issue in the nineties.

INDIAN PHARMA INDUSTRY: AT A GLANCE 

The Indian pharmaceutical industry today is in the front rank of India's science based industries. It is one of the largest and most advanced among the developing countries. It has wide ranging capabilities in the complex field of drug manufacturing and technology. It is a front runner in the third world in terms of technology, quality and range of medicines manufactured. Almost all medicines ranging from simple pain relieving pills to sophisticated antibiotics and complex cardiac compounds are now made in the country. These have made India fairly self sufficient in this field. A large domestic market and relatively inexpensive trained manpower have also enabled the country to emerge as a low cost production centre. Today there are nearly 20,000 licensed companies. 300 out of these exist in the organized sector. They produce over 350 bulk drugs and the complete range of formulations. The Indian pharmaceuticals industry revenue is approx. 1.3% and of the global pharmaceutical sales and 8% by volume (stands 5th in volume terms). The total market capitalization of the Indian Pharmaceutical industry is 156,000 crores. Foreign investment has virtually doubled in 5 years. Exports have grown 5-fold. The Indian pharma market has registered a double digit growth rate. The Rs. 40,000-crore Indian Pharmaceutical sector has come a long way, being almost non-existent before 1970 to a prominent provider of healthcare products, meeting almost 95% of the country's requirements for Bulk Drugs and Pharmaceutical Formulations.

The Indian pharma industry has registered significant reuse in capital investment over the years. It has also been a net export earner and a major source of employment. The sector however, has faired poorly in attracting foreign investment following the opening up of the economy in the early nineties. Some Indian companies have opened their offices abroad. There is also a noticeable trend towards mergers and acquisitions in the domestic front. A good growth has been predicted for Indian pharmaceutical Industry due to increase in local market and increase in export to newer and developed markets.