Pharmaceuticals


Pharmaceuticals

 


 

Growth will come not just from business development, but from business model development. Pharmaceutical industries have been moving to reinvent their business models in recent years, driven by trends such as the patent cliff, decreasing R&D productivity, pricing pressures, globalization and demographics.

 

Indian Pharmaceutical Industry is ranked 4th in the world, pertaining to the volume of sales, the estimated worth of US$ 6 billion every year. Almost 70% of the domestic demand for bulk drugs is catered by the Indian Pharma Industry. India produces around 20% to 24% of the global generic drugs and has the Capacity and Technology pertaining to complex drug manufacturing.

 

As per the present growth rate, the Indian Pharma Industry is expected to be a US$ 20 billion by the year 2015 with sales of worth US$ 43 billion within the next decade.

 

With the increase in the medical infrastructure, the health services would be transformed and it would help the growth of the Pharma industry further, increase the concentration of multi-national pharmaceutical companies in India, and becomes easier to attract foreign direct investments.

 

The pharmaceutical world market will experience significant shifts. Asia-Pacific region will emerge as the fastest growing pharmaceutical market over the recent past. The reason for this positive shift can be attributed to the low costs and favorable regulatory environment. This region has experienced important developments regarding contract manufacturing, especially in generics and APIs. Increased R&D activities in the region has helped Asia-Pacific pharmaceutical industry to achieve an estimated market size of around US$ 187 Billion in 2009. Here, the pharmaceutical industry is expected to grow at a CAGR of around 12.6% during 2010-2012. It can, in fact, become the global API production hub in next few years.

 

Pharmaceutical sales are growing at a fast rate in India, China, Malaysia, South Korea and Indonesia due to the rising disposable income, several health insurance schemes (that ensures the sales of branded drugs), and intense competition among top pharmaceutical companies in the region (that has boosted the availability of low cost drugs). China’s pharmaceutical market will continue to grow at a 20+ % annually, and will contribute 21% of overall global growth through 2013.

 

The Indian Pharmaceutical Industry is one of fastest emerging international center for contract research and manufacturing services (CRAMS). The main factors for the growth of the CRAMS is due to the international standard quality and low cost.

 

India already has the biggest number of US Food and Drug Administration (USFDA) standardized manufacturing units outside the territory of United States. Around 50 more new manufacturing units are to be set up in accordance to the USFDA and UK Medicines and Healthcare Regulatory Agency (MHRA) standards, with all these development India is posed to become the biggest producer of drugs in the world.

 

Indian pharmaceutical companies are ascending the value chain with a focus on innovation. The level of investments in R&D capabilities and infrastructure has been enhanced both by the industry and the government. The growing R&D pipeline of Indian companies presents significant in-licensing opportunities for global companies.

 

APAC has strategically sourced critical intermediate & APIs based on “Non-Infringement” processes. Proven capability to save 10% to 30% of the last buying price, we have worked proactively to participate in the business planning, supply chain management of the customer with a view to improve their product mix. Expertise in Pharma Industry & trustworthy relationship enables us superior negotiation and sourcing of hard to find complex molecules.