Study of Indian pharmaceutical industry

Abstract

The pharmaceutical industry in India is one of the largest and most advanced among the emerging countries. Indian pharmaceutical industry is estimated to be about US$ 9 billion and projected to grow to US$ 25 billion by 2012. The Indian Pharmaceutical industry used to be an import dependent industry in the 1950’s. It has now achieved self-sufficiency and also gained global recognition as a producer of low cost high quality bulk drugs and formulations. The leading Indian firms have developed infrastructure in over 60 countries around the world including developed markets like US and Europe. Several pharmaceutical companies have demonstrated that they possess the ability to engage in commercially viable R&D activities and possess the capability to become significant players in the global market. Indian pharmaceutical market has grown at 1.5-1.6 times the growth of economy over the last couple of years. The market is classified into two segments; Formulations (finished dosage) and Bulk Drugs (Active Pharmaceutical Ingredient). It is classified into two segments: formulations (finished dosage) and Bulk drugs (Active Pharmaceutical Ingredient). Formulation market comprises the final finished dosages in the form of tablets, capsules, injectibles, liquids, and others that are directly consumed by customers, whereas bulk drugs are Active Pharmaceutical Ingredients (API) or compounds that show specific medicinal properties. Bulk drugs and drug intermediates, consist of chemicals and solvents together, are the raw materials for the production of drug formulations which are ultimately sold to the customers. India is one of the world leaders in API as more than 350 basic drugs are produced with world class quality. India is now emerging as a preferred supplier of APIs to many global companies for considerations beyond costs. It is today the third largest API player after China and Italy and by 2010, it is expected to be the second largest after China. The current share of around 6.5% of the global API market is expected to reach 10.5% by 2010.