Pharmaceutical Industry in India

Study Notes

India's Pharmaceutical Market

India offers a big market for both life-saving and lifestyle drugs
The country has a large number of medical colleges (>300) and hospitals (>20,000)
India has a potential for conducting research and development activities

Advantages of India for Pharmaceutical Companies

Low cost of production due to lower labor costs and raw material costs
Existing manufacturing capability to produce active pharmaceutical ingredients (APIs) and intermediates at lower cost while maintaining quality
India has a maximum number of USFDA approved plants outside the US
Ease of conducting clinical trials and bioavailability and bioequivalence studies due to a vast patient pool and speedier trials

Intellectual Property Rights (IPRs) in India

Prior to TRIPS, IPR protection was a concern for global pharmaceutical companies
Post-TRIPS, India has established statutory, administrative, and judicial frameworks to safeguard IPRs
Patented inventions (including products) are now given 20 years of protection in India
International trademarks, computer software, and databases are protected through judicial decisions and court orders
Trade secrets and know-how are protected under common law and through contractual obligations
India's patent law recognizes both product and process patents for pharmaceutical products

Private Companies in India

Advantages

Less stringent regulation compared to public companies
More flexibility in conducting operations, including management, securities issuance, and managerial remuneration
Faster incorporation process

Disadvantages

Restrictions on inviting the public to subscribe to securities
Limited exit options

Description

Learn about the opportunities and potential for global pharmaceutical companies entering the Indian market, including factors such as low production costs and a large market for various types of drugs.