80% of the global requirement of antiretroviral drugs to fight AIDS is supplied by the Indian pharmaceutical manufacturing companies. India holds a very strong position in the global pharmaceutical market, with its exclusive pool of expert scientists and highly-skilled engineers. In a decade, the position of India is yet stronger, though the sector has witnessed some major upheavals.
There is a sharp increase in the number of diagnostic centres and pathological labs, with the Indian user base more concerned about the health and routine checkups. Now, consequently, there is an ascending pattern in the pharmaceutical sector as well, the sales of medicines and other drugs are rising, assuring a significant growth in the sector.
Since the 1960s and the Patents Act of 1970, the Indian government has been encouraging the growth of the pharmaceutical sector. The decade started with a positive note. In the FY2009-2010, Indian biopharmaceutical industry marked a 17% growth with an annual turnover of US$ 3 billion, and in FY2019 it increased to US$ 19.14 billion. The leap can be easily mentioned in number, but achieving this height was not an easy task.
Currently, India is known as the pharmacy of the world in the global market. Researches show that the biotechnology industry in India, comprising of biopharmaceuticals, bio-informatics, bio-agriculture etc, is growing by 30% every year, and it will reach US$ 100 billion in the year 2025. The sector is undergoing a positive transformation; let us see what else changed in this decade.
Alliance with US Pharmaceutical Industry
In the year 2008-09. Sun Pharma recognised the potential of the fertile US drug market. By 2010, it also acquired Taro Pharmaceuticals, thus dominating the US and global drug market. Its revenue grew up from US$ 5 billion in 2006-07 to US$ 98 billion in 2013-14. With this, more and more pharmaceutical firms started exporting in the US market with high hopes of profitability.
With the fast penetration of the domestic pharmaceutical companies into the foreign market, the competition among the various manufacturing firms gained momentum. Since 2014, USFDA (US Food and Drug Administration) issued hundreds of restrictions on the quality of drugs and pharmaceuticals. In 2015, there were rigorous inspections in 272 pharmaceutical manufacturing sites. 50% of the FDA warnings are issued against India, based on the quality of the manufactured pharmaceuticals.
Domestic pharmaceutical firms had to face more and more challenges due to their trade connections with the USA. But, in 2013 Dinesh Thakur exposed the malpractices of the pharma industry, resulting in a reduction in the number of inspections from 272 to 192 in 2017. Gradually, India again managed to create a predominant position in the US and global market. The decade showed a tough and challenging journey of Indian pharmaceutical industry, with prospects of growth in the near future.
Increased Affordability
In comparison to 2009, the sales growth of pharmaceutical industry declined by 5.5% in 2017, caused due to the delayed product approval and controlled price charges. In 2013, the National Pharmaceutical Pricing Authority (NPPA) the government decided to shift to a market-based ceiling price formula. In the following years, there was a significant price cut in antibiotics, anti-diabetics and cancer drugs, among many others.
In 2016, the Indian government launched Jan Aushadhi Yojna, which aimed at the distribution of low priced medicines and pharmaceuticals through government channels such as health centres. The rural sector contributes to 70% of the Indian population, and the government’s step to lower the price rates was understandable.
Though it helped the common mass, the domestic pharmaceutical and medicine industry was not pleased with this step of the government. The industry had to face unstructured policies and difficult regulatory obstacles, making the sector much unorganized. In this decade, we have seen some controlled price cuts which lead to increased sales and affordability, but the industry has to work a lot to gain stability.
Turning to Technology and Nature
Stephen Hawkins fought the motor neuron disease successfully for 55 years before embracing a peaceful death. He could do it due to the constant technological interventions and progressions in modern times. Technological Revolution plays a major role in augmenting the life expectancy rates of the modern world, both domestic and globally. But along with this, the pharmaceutical sector does not hesitate to look back to the diverse natural resources.
Mother Nature is helping mankind to cure ailments and diseases for several ages. The power of Ayurveda and natural treatments are recognized in contemporary times, thus helping the patients to avoid several side effects of antibiotics and other chemical drugs. Several Ayurvedic cure centres have developed in this decade, giving options to the users to choose from.
Homoeopathy has not seen much progress in recent years, but centres like Naturoveda are being preferred by a large percentage of the common mass. AI-enabled body sensors are used by several medical practitioners for early detection and faster treatments. Nanotechnology has gained momentum in this decade. Nanotechnology refers to “the science and engineering involved in the design, synthesis, characterization, and application of materials and devices whose smallest functional organization, in at least one dimension, is on the nanometer scale or one billionth of a meter.” The pharmaceutical industry believes that Nanotechnology can unleash major breakthrough in medicines, diagnosis and genetic engineering.
One of the most significant nanomedicines is Genexol-PM which fights breast cancer and lung cancer. This decade has witnessed some significant and noteworthy inclination towards technological advances and diverse natural resources for enriching the global and domestic pharmaceutical industry.
Healthier lifestyle & Demands in the Pharmaceutical Industry
Will you believe if I say that there is a pill to prevent HIV? Yes, there is. PrEP or Pre-exposure Prophylaxis is a scientific method to decrease the chance of getting infected to HIV and preventing the disease to spread in the other parts of the body. The drug Truvada manufactured by an American manufacturing company Gilead is globally accepted as the only pill to prevent HIV.
Nowadays, people are becoming more and more cautious about their health conditions. The growing fashion industry, influencer marketing, the social media obsession of uploading better pictures and body transformations have all contributed to the increasing health awareness. The pharmaceutical industry, both global and domestic, feels that the demand for pills and organic supplements are increasing at a fast rate. They are always trying to meet this demand, with newer and more updated innovations.
The pharmaceutical and medicine industry had to face a severe blow due to the introduction of GST and the sudden attack of demonetization. GST was levied on the various machines used in manufacturing medicines and diagnostic procedures. Demonetization adversely affected the industry as the users were much hesitant in investing in this sector, sometimes risking their lives as well. But the wind of digitization and the neck-to-neck competition is blowing the pharmaceutical industry towards an upward trajectory. This industry has a lot of scope for attaining stability in the near future.
Closure
The competitive market of the pharmaceutical industry is having new entrants in a full swing, giving the users various options to choose from. Like any other industry, be it automotive or eCommerce or insurance, the pharmaceutical industry is undergoing transformations, ups and downs. For maximizing the growth, this industry is in constant search for expert professionals and veterans. Tech-enabled and niche skilled employable resources can bear the torch for the future pharmaceutical sector.
The pharmaceutical industry, like any other industry, has and is undergoing major drifts in recent years, and the future holds great possibilities as well. The decade has created a historical tapestry on the pharmaceutical industry. With the increasing demand and fast technological advances, the pharmaceutical industry will not leave the centre stage anytime soon. The growth trajectory of the pharmaceutical sector cannot be depicted in one post.
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