Pharmacy of the world’, the Indian pharmaceutical industry has the opportunity to play a greater role in the safety of global drug supply. Financial and political incentives can help achieve this.
In 1969, Indian pharmaceuticals had a 5% market share in India and global pharmaceutical companies had a 95% share. By 2020, the opposite was true, with Indian pharmaceutical companies accounting for nearly 85% and 15% of the world total.
Over the past 50 years, Indian companies have prospered both in meeting domestic needs and establishing a leading position in the global pharmaceutical industry. India already accounts for more than 20% of the global generic drug market by value, and Indian products account for more than 40% (quantity) of US drugs.
Competitive Market
Indian industry is worth about US $ 37 billion and exports account for about US $ 18 billion. Interestingly, Indian drug prices are one of the cheapest in the world, partly because of the extremely fierce competition. The Herfindahl Index is a measure of the fierce competition in the industry and measures the size of companies associated with the industry. The Herfindahl index value for non-concentrated markets is less than 0.15, while the Herfindahl index value for more concentrated markets is above 0.25. We calculated the Herfindahl index for the top seven treatment categories from an Indian molecule with annual sales of at least £ 100 million. The results show that the sample Herfindahl index is less than 0.15, indicating a highly competitive and unfocused market. Overall, analysis of the Indian pharmaceutical industry shows a very competitive industry structure, and based on mainstream economic theory, a competitive market structure has increased market clearing prices and consumer surplus. Should bring. As competition intensifies, downward pressure on prices automatically occurs.
The AIOCDAWACS MAT 2019 report shows that 11% of Indian formulations are below the £ 5 price. Studies show that the prices of generics in India are the lowest in the world.
Increased production
How does this help at this time of Covid19? The big Indian companies have some of the cheapest prices in the world, but they can not only serve the Indian essential medicine market, but also supply it to the world.
To reach the pharmacy of the world’, first take this opportunity to support and streamline pharmaceutical manufacturing through initiatives such as strict implementation of manufacturing staffing policies in all states (including formal notifications to all states). By doing so, we need to increase the production of medicines in India. / Municipalities); Consistently implement guidelines in all states to ensure optimized logistics for medicines. B. Material transportation across state borders. Support for pharmaceutical company sub-suppliers (packaging materials, solvents, etc.).
The low price makes the drug socially acceptable around the world. As quality is enhanced by the USFDA, known for its prestigious standards (India has the largest number of USFDA-approved facilities in the world), India offers high quality medicines at low prices and offers the potential. Can be enhanced to be pharmacy if the world
Second, the government has made diagnostic kits and other medical devices to increase production, especially given that the raw materials used to make these devices are heavily dependent on imports. We need to provide targeted financial incentives to encourage, which is also an opportunity to bring most of API manufacturing back to India and make India independent of imports of significant inputs.
In this regard, the government’s decision to encourage domestic production of KSMs, intermediates and APIs (through the establishment of large drug parks and production-related incentives) is a very welcome policy for the industry in the future. The self-sufficiency of pharmaceutical manufacturing in India can be further enhanced by providing APIs and incentives / support for intermediate manufacturing / KSM. B. Providing SEZ for the manufacture of bulk pharmaceuticals.
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