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Accounting to 1.4% of the
global pharmaceutical market; the per capita annual drug expenditure comes to
less than USD 10. The Indian pharmaceutical industry is spreading in the
overseas market with 60% APIs being exported. The prominent emerging
developments in the recent years have changed the face of the Indian
Pharmaceutical industry.

Mergers, acquisitions,
collaborations, strategic and marketing alliances between pharmaceutical
companies for technological advancements, advances in research and clinical
trials and promotion of specific products have become a common strategy; to
consolidate available resources and get optimal results. Accepting the patent
wars; Indian companies are now moving towards increasing the sales of generic
medicines; which they can spread to other countries too. Indian companies are
also preparing to file the ANDAs when some product’s patent expires. Major companies
like Cipla, Ranbaxy, Sun Pharma, Dr. Reddy’s, Lupin and Wockhardt accounts to
over USD 20 billion in the US. Indian Companies have their aspirations set on
introducing innovative medicines in the market resulting in rising preference
to outsourcing R & D. The complexities in research of new formulations,
fierce competition, and mounting pressure on the balance sheet are a few
compelling reasons for the rise of outsourcing R & D to India. A few major
examples are that of Pfizer’s Clinical Research Division which works with
Contract Research Organizations in the country; and Bausch & Lomb who run
their drug trials in India. Moreover, Indian pharmaceutical companies have also
struggled to take their brands global with few succeeding in their endeavors.

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The efforts of Indian
Government have been very upbeat in promoting the 100% FDI in the industry. The
department of Pharmaceutical Industries in the Government has prepared a
document named “Pharma Vision 2020”; with an aim to make India the top destination
for drug innovation and delivery. Initiatives include tax concessions, weighted
tax deductions up to 150% of the research and development expenditure; efforts
to reorganize R & D, clinical research & trials etc. make up a large
part of this vision. 19 SEZs have been set up for the sector in the country. A Pharmacopeia
commission is also in the process of being set up to support advancements in
allied medical streams.

The Pharmaceutical industry
now needs a tripartite collaboration between the Government, academia and
private sectors to boost the research activities. The Government will have to
take up the role of a moderator and bring together forces to promote
investments and research activities. Infrastructural and financial support
together will bring the research efforts at par with developed countries of the
West. 

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