Indian Pharmaceutical industry is highly fragmented with more than 20,000 registered units. The leading top 300 companies control 70% of the market with market leaders holding nearly 7% of the market Share. More than 6000 small units form core of the industry.
|Fable 1: India's pharmaceutical firms, by si/e, sales, function, exports, and R&D capabilities|
|Grouping||Number of firms||Description|
Largest firms, includes both wholly-owned Indian firms and subsidiaries of MNCs; have annual revenues of at least $650,00; have brand recognition and arc engaged in developing R&D capabilities; responsible for recent wave of cross-border acquisitions and alliances; export to regulated, scmi-rcgulatcd, and unregulated markets.
Mid-size firms with annual revenues between $210,410 and $650,000; they have limited investment capabilities and primarily serve the domestic Indian market. They arc generic drug producers that subsist mainly on reverse engineering of patented and off-patent drugs (primarily bulk drugs and APIs); also includes niche players specializing in contract research (CRAMS) and contract clinical trials in segments of the market where they have a competitive advantage; export to scmi-regulated and unregulated markets.
Smallest firms with annual revenues of less than $210,410;.primarily perform contract manufacturing services for MNCs or domestic firms. Many have been adversely affected and have been forced to close their doors due to revised Good Manufacturing Practices set by Schedule M of India's Drug and Cosmetic Act, 1940 that came into effect from July I, 2005. Those affected cannot meet production standards of regulated market regulators and their production will be limited to the domestic, semi-regulated, and unregulated markets.
Source: Padmashree Gehl Sampath, Indian Pharma Within Global Reach?United Nations University, 2006-031.