INTRODUCTION: The pharmaceutical industry is a knowledge driven industry and is heavily dependent on
R&D for new products and its growth. However, Basic Research (discovering new molecules) is a time consuming and expensive process and is thus, dominated by large global multinationals. In the Global Pharmaceutical Market, Western Markets are the largest and fastest growing due to introduction of newer molecules at high prices. A well-established reimbursement and insurance system implies that per capita drug expenditure is abnormally high
in Western Countries as compared to the developing nations.
The Indian Pharmaceutical Industry is highly fragmented, but has grown rapidly due to the friendly patent protection, low cost manufacturing structure, intense competition, high volumes and low prices. Exports have been rising at around 30% CAGR over last five years.
The Drug Pricing Control Order (DPCO) has severely restricted profitability and hence innovation. However, the government has been relaxing controls in a slow but progressive manner. The span of control of DPCO has come down from 90% in 1980s to 50% in 1995 and is likely to be further reduced as per the latest proposed changes.
In the domestic market, old and mature categories like anti-infective, vitamins, analgesics are degrowing or stagnating while new lifestyle categories like cardiovascular, CNS, anti diabetic are growing at double-digit rates. The growth of a company in the domestic market is thus critically dependent on its therapeutic presence.
DEFINITION OF PHARMACEUTICALS:
Pharmaceuticals are substances known as medicines, used in preventing and curing illness and disease. Usage of pharmaceutical is governed by underlying science of illness and disease.
Ancient civilization allowed India to develop various kinds of medical and pharmaceutical systems. In addition to the allopathic system, which is prevalent in the United States, Japan and Europe, the following types of medical and pharmaceutical systems are used by the Indian people.