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SWOT ANALYSIS OF

PHARMACEUTICAL INDUSTRY

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Indian Pharmaceutical Industry

IPI is ranked 4th in volume term and 11th in value

terms globally.

Around 70% of the countrys demand for bulk drugs,

pharmaceutical formulation, chemical , tablets ,

capsules , orals and vaccines is met by IPI.

The Pharmaceutical industry in india is fragmented

with over 3000 small\ medium sized genericpharmaceutical manufacture.

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STRUCTURE OF INDUSTRY

Fragmented with 24000 players 300

organized

Leading 250 70% of the market Market leaders hold 7%

Manufactures : Bulk drugs APIs

Formulations (75:25) Adopts high technology & produces high

value products

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Key product

Medicines

Medical equipment

Surgical goods Operation accessories

Injections

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Key Players In Pharmaceutical

IndustryRANK COMPANY NAME

1 RANBAXY

2 CIPLA

3 DR.REDDY S LAB

4 NICHOLAS PIRAMAL

5 WOCK ARDT LTD

6 LUPIN LABS

7 CADILA HEALTH CARE LTD

8 SUN PHARMA

9 ALEMBIC LTD

10 MOREPAN

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FRAMEWORK OF ANALYSIS:

SWOT ANALYSIS

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Strength

Cost effective technology

Strong and well-developed manufacturing base

Clinical research and trials

Knowledge based, low- cost manpower in science &technology

Well Established R&D infrastructure

High-quality formulations and drugs

High standards of purity World-class process development labs

Excellent clinical trial centers

Chemical and process development competencies

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Weakness

Low Indian share in world pharmaceutical

market (about 2%)

Lack of strategic planning

Fragmented capacities

Absence of association between institutes and

industry Biotechnology and Pharmaceuticals

Low healthcare expenditure Production of duplicate drugs

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Opportunity

Incredible export potential

Increasing health consciousness

New innovative therapeutic products

Globalization

Drug delivery system management

Increased incomes

Production of generic drugs

Contract manufacturing

Clinical trials & research

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Threats

Small number of discoveries

Competition from MNCs

Trade related aspects of Intellectualproperty rights (TRIPS)

Outdated Sales and marketing methods

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MERGERS AND ACQUISITIONS

IN THE INDIAN

PHARMACEUTICALINDUSTRY

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Announce date Target Acquirer Reason Deal ValueTarget

Country

Feb-06

Betapharm Dr.Reddys

Labs

Front end line in

Germany

570 Germany

May-04

Espama Gmbh Wockhardt Front end line in

Germany

11 Germany

Nov-05

Ranbaxy Daichii Sankyo Low cost

manufacturin

g and supply

chainmanagement

33.5 Japan

Nov-05

Roches API

Facility

Dr.Reddys

Labs

Increasing

presence in

Contract Mfg

58.97 Mexico

Oct-05

Avecia Nicholas

Piramal

Increasing

presence in

Contract Mfg

17.1 UK,Canada

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CONCLUSION

Pharma industry being a growth industry

Unaffected by the business cycle

As per the present growth rate, the Indian PharmaIndustry is expected to be a US$ 20 billion industry by

the year 2015 India has

competitive strength in research services

availability of low cost skilled doctors and scientists

large patient population with diverse disease

characteristicsadherence to international quality standards

VLSS agencies recommends investment in this industryto be a wise decision.

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THANK YOU