Tuesday 7 February 2012

SWOT Analysis of Indian Pharma Industry


India advantage
  • Cost competitiveness due to lower labour cost and production cost
  • Well-developed industry with strong manufacturing base
  • Well established network of Laboratories and R & D infrastructure for new drug discovery and development
  • Access to pool of highly trained  and skilled scientists, both in India and abroad
  • Strong marketing and distribution network in domestic as well as international market
  • India is second largest country in terms of population in world with rich biodiversity
  • Expertise in reverse engineering and development of new Chemical process made Indian pharmaceutical industry as one of the strongest generic industry
Weaknesses
  • Low investment in innovative Research & Development
  • Lack of resources to compete with MNCs for New Drug Discovery Research and to commercialize molecules on a worldwide basis
  • Lack of strong linkages between industries and academia
  • Lack of culture of innovation in the industry
  • Low  per capita medical expenditure and healthcare spend in country
  • Inadequate regulatory standards
  • Production of spurious and low quality drugs tarnishes the image of industry at home and abroad
Emerging trends and opportunities
  • Significant export potential to the developing as well as developed countries
  • Licensing deals and collaborations with MNCs for New Chemical Entities and New Drug Delivery Systems
  • Providing marketing operations to sell MNC products in domestic market
  • India can be niche player in global pharmaceutical R & D by developing world class infrastructure
  • Contract manufacturing arrangements with MNCs
  • Potential for developing India as a centre for International Clinical Trials
  • Increasing aging world population
  • Increasing incomes and buying power of people especially in rural areas has opened the great opportunity for Indian pharma companies. Around 70% of the total population of India is residing in rural areas.
  • Growing awareness for health and increasing spending on health
Threats
  • Product patent regime poses serious challenges to domestic industries unless it invests in R & D.
  • R & D efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement. For instance, restrictions on animal testing out-dated patent office.
  • DPCO puts unrealistic ceilings on product prices and profitability and prevents pharmaceutical companies from generating investible surplus.
  • Exports effort hampered by procedural hurdles in India as well as non-tariff barriers imposed abroad.

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