Swot of Indian pharmaceutical industry
Strengths
- Cost competitiveness
- Well developed industry with strong manufacturing base
- Well established network of laboratories and r&d infrastructure, strong motivated scientific force
- Self reliant technology for production
- Access to pool of highly trained scientists
- Strong marketing and distribution network
- Rich biodiversity
- Low r&d costs
- Competencies in chemistry and process development
- Cost effective technologies for bulk drugs production and well developed capital equipment industry
- Increasingly, india is being regarded as a manufacturing base by global pharmaceutical companies.
Weakness
- Low investments in innovative r&d.
- 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 industry and academia.
- Lack of culture of innovation in the industry
- Low medical expenditure and healthcare spend in the country
- Inadequate regulatory standards
- Production of spurious and low quality drugs tarnishes the image of industry at home and abroad.
Opportunities
- Significant export potential
- Licensing deals with mncs for ndds
- Marketing alliances to sell mnc products in domestic market
- Contract manufacturing arrangements with mncs
- Potential for developing india as a centre for international clinical trials
- Niche player in global pharmaceutical r&d.
- Strong base of scientific as well as technical manpower and also due to pioneering work done in process development
- Supply of generic drugs to developed markets
Threats
- Product patent regime poses serious challenge to domestic industry unless it invests in research and development.
- Dpco puts unrealistic ceilings on product prices and profitability and prevents pharmaceutical companies from generating investible surplus
- R&d efforts of indian pharmaceutical companies hampered by lack of enabling regulatory requirement.
- Entrants of newer players in highly fragmented market.
