Indian Pharmaceutical industry ranks third worldwide by volume of production and 14th by value there by accounting 10% of world`s production by volume and 1.5% by value. The total turnover of Pharma industry was at Rs 1,0061.11 billion for the year ended September 2009, where domestic pharma market contributes about 58% or Rs 586.26 billion and exports contributes 42% or Rs 419.85 billion.
Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. Indian pharmaceutical industry has progressed tremendously on infrastructure, technology development and a wide range of products over past two decades. As Indian companies can deliver good quality of drug with lower cost, it now preferred destination for most of advanced countries. Most Indian companies maintain highest standards in purity, stability and international safety health and environmental protection in the production and supply bulk drugs to even innovator companies.
Broadly Indian Pharmaceuticals sector is classified into Bulk drugs, Formulation and Contract Research and Manufacturing Services (CRAMS). The drug and pharmaceuticals industry in India meets around 70% of the country`s demand for bulk drugs, drug intermediates and formulations. There are about 500 corporate players with more than 20000 players in general and thus fragmented Indian pharmaceutical industry. The bulk drugs and pharmaceuticals manufacturers produce complete range of pharmaceutical formulation and about 350 bulk drugs.
In the last two years, the patent of drugs wroth of USD 40 billion has expired. The value is set to double (USD 83 billion) in the next three years. This gives ample opportunity to Indian companies. At the same, India is also become favorable destination for CRAMS business. India can develop a drug at half cost compared to advanced countries and can manufacturing drugs at 30-40% of production cost of advanced countries. M & A in Indian Pharmaceutical industry revived started with Japanese major Daichii Sankyo acquiring majority stake in India`s pharma leader Ranbaxy Laboratories, then followed by Sanofi-Aventis acquiring 80% stake in unlisted Shantha Biotechics and Hospira acquiring Orchid Chemicals & Pharmaceuticals` generic injectable business.
``Globally, pharmaceutical industry is witnessing M & A due to attractive valuation. But in the case of India, there are more buyers than seller, but the former feel that the current valuations are higher. As a result, frontline players are keener on acquiring brands rather than acquiring companies. On an overall basis, the growing global generic markets, increasing CRAMS opportunities and strong growth in domestic market are the key drivers of Indian Pharmaceutical industry. ``
Pharmaceutical Industry in India is one of the largest and most advanced among the developing countries. Indian pharmaceutical industry has progressed tremendously on infrastructure, technology development and a wide range of products over past two decades. As Indian companies can deliver good quality of drug with lower cost, it now preferred destination for most of advanced countries. Most Indian companies maintain highest standards in purity, stability and international safety health and environmental protection in the production and supply bulk drugs to even innovator companies.
Broadly Indian Pharmaceuticals sector is classified into Bulk drugs, Formulation and Contract Research and Manufacturing Services (CRAMS). The drug and pharmaceuticals industry in India meets around 70% of the country`s demand for bulk drugs, drug intermediates and formulations. There are about 500 corporate players with more than 20000 players in general and thus fragmented Indian pharmaceutical industry. The bulk drugs and pharmaceuticals manufacturers produce complete range of pharmaceutical formulation and about 350 bulk drugs.
In the last two years, the patent of drugs wroth of USD 40 billion has expired. The value is set to double (USD 83 billion) in the next three years. This gives ample opportunity to Indian companies. At the same, India is also become favorable destination for CRAMS business. India can develop a drug at half cost compared to advanced countries and can manufacturing drugs at 30-40% of production cost of advanced countries. M & A in Indian Pharmaceutical industry revived started with Japanese major Daichii Sankyo acquiring majority stake in India`s pharma leader Ranbaxy Laboratories, then followed by Sanofi-Aventis acquiring 80% stake in unlisted Shantha Biotechics and Hospira acquiring Orchid Chemicals & Pharmaceuticals` generic injectable business.
``Globally, pharmaceutical industry is witnessing M & A due to attractive valuation. But in the case of India, there are more buyers than seller, but the former feel that the current valuations are higher. As a result, frontline players are keener on acquiring brands rather than acquiring companies. On an overall basis, the growing global generic markets, increasing CRAMS opportunities and strong growth in domestic market are the key drivers of Indian Pharmaceutical industry. ``
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