ANALYSIS OF INDIAN

PHARMACEUTICAL
INDUSTRY

Submitted to:
M.S. University
(MBA Evening Semester IV)

Submitted by:
Mehta Ravin H (Roll # 17)
(Working with SUN Pharmaceuticals Limited)
S UMMARY

The Indian Pharmaceuticals sector has come a long way, being almost
non-existing during 1970, to a prominent provider of health care
products, meeting almost 95% of country’s pharmaceutical needs. The
domestic pharmaceutical output has increased at a compound growth
rate (CAGR) of >13% per annum.

The Indian pharmaceutical industry, with US $5 billion in domestic

sales and over US $3 billion in exports, is showing satisfactory progress
in terms of infrastructure development, technology base and product
use. The industry now produces bulk drugs belonging to all major
therapeutic groups requiring complicated manufacturing processes
and has also developed excellent ‘good manufacturing practices’
(GMP) compliant facilities for the production of different dosage forms.
The strength of the industry is in developing cost-effective
technologies in the shortest possible time for drug intermediates and
bulk actives without compromising on quality. This is realized through
the country’s strengths in organic synthesis and process engineering.

Various models have been used for the purpose of analysis of the
Indian Pharmaceutical Industry. The models used are the Porter’s five
forces model which analyzes an industry by breaking down the
influencing factors into five separate parts i.e, threat of new entrants,
the bargaining power of buyers, bargaining power of suppliers, threat
of substitutes & Industry competition. P.E.S.T analysis has been used
to examine the external environment of the industry. An added
analysis of the S.W.O.T has been used which analyzes the position of
the industry with respect to its internal & external environment.
The last section of the report includes the introduction to four
companies & future outlook of the Indian Pharmaceutical Industry. The
main growth drivers for the industry are Generics, Biotechnology &
Outsourcing.
Table of Contents
1. Introduction
2. Industry Structure
3. Porter’s Five Forces Model
4. Advantage in India
5. Trends in Pharmaceutical Industry
6. S.W.O.T Analysis
7. P.E.S.T Analysis
8. Opportunities for SUN
9. Future Outlook
10. Conclusion
11. Appendix
Introduction
The Indian Pharmaceuticals sector has come a long way, being almost
non-existing during 1970, to a prominent provider of health care
products, meeting almost 95% of country’s pharmaceutical needs.
London research company Global Insight estimates that India’s share
of the global generics market will have risen from 4% to 33% by 2007.
Most of the players in the market are small-to-medium enterprises;
250 of the largest companies control 70% of the Indian market. India’s
US$ 4.1 billion pharmaceutical industry is growing at the rate of 14
percent per year. It is one of the largest and most advanced among the
developing countries. The Indian Pharmaceutical Industry today is in
the front rank of India’s science-based industries with wide ranging
capabilities in the complex field of drug manufacture and technology. A
highly organized sector, the Indian Pharma Industry is estimated to be
worth $ 5-6 billion, growing at about 8 to 9 percent annually. It ranks
very high in the third world, in terms of technology, quality and range
of medicines manufactured. From simple headache pills to
sophisticated antibiotics and complex cardiac compounds, almost
every type of medicine is now made indigenously. Globally, the Indian
industry ranks 4th in terms of volume and 13th in terms of value &
India are also one of the top 5 active pharmaceutical ingredient (API)
producers. It ranks 17th with respect to exports value of bulk actives &
dosage. Indian pharma has been relying on reverse engineering to
copy international drugs. However, it has started realizing the
importamce of R&D & developmental skills to tap the US/EU markets
which has led to rise in export figures of the companies.

The opportunities for the Indian players lie in both manufacturing &
R&D services. The industry has been discussed in three phases in
much research report; however, the post 2005 era will be extensively
covered in this project. The year 2005 saw a series of developments
for the Indian pharmaceutical players like implementation of VAT, shift
from excise based levy to MRP based levy & recognition of product
patents. While the process patent regime helped in the development
of Indian pharma in the generic drugs sector, the product patent
regime has restored the confidence of the MNCs in the Indian market.
In the generic field $45 bn drugs are expected to loose their patents
protection, opening up huge opportunity for the Indian pahrma
companies in the generic field. Top 10 Pharmaceuticals in India as per
Market Capitalization in 2010 :

1. Sun Pharmaceuticals (Rs. 35,865)

2. CIPLA (Rs.26,059)
3. Dr. Reddy's Laboratories (Rs. 23,005)
4. Ranbaxy Laboratories (Rs. 19,497)
5. GlaxoSmithKline Pharma (Rs. 16,984)
6. LUPIN Limited (Rs. 16,320)
7. CADILA HEALTHCARE (Rs. 12,628)
8. Piramal Healthcare (Rs. 10,500)
9. Divi's Laboratories (Rs. 9,712)
10. Glenmark Pharmaceuticals (Rs.7,431)
I NDUSTRY STRUCTURE

The structure of the Indian Pharmaceutical Industry is characterized by

fragmentation, with over 20,000 players – a large number of them in
the small scale sector, only 260 in the organized sector. As a result, no
individual market share in Indian retail formulations market exceeds
7%. However a trend of consolidation is visible at the top. In 2001, the
top five players accounted for 22% while in 2006, they account for
28% of the market share. Also the top ten in 2001 accounted for 36%,
and in 2006 they accounted for 42%. The pharmaceutical industry can
be divided on the basis of form and therapeutic application. On the
basis of form, the industry can be divided into bulk drugs and
formulations, while on the basis of application; it can be divided into
various therapeutic segments. Formulations occupy most of the market
share. The anti-infective segment remains the largest in the Indian
retail formulations market at around 25%.

P ORTER’S FIVE FORCES ANALYSIS

1. THREAT OF NEW ENTRANT: has low entry barrier for new
entrants. The major barriers to entry are:

(i) The presence of economies of scale in manufacturing, R&D,

marketing, sales etc & capital requirement & financial requirements.
The existing companies have advantage in terms of costs involved in
launching new drugs & formulations. The new companies would find it
difficult to achieve this.

(ii) Differentiation of products from the existing products in the market

& creating brand awareness in the minds of doctors & pharmacists.
New entrants will face difficulties in gaining trust of doctors/patients &
they also need time to develop efficient distribution channels &
preferred arrangements with doctors/ pharmacists.

(iii) Regulatory policies including patents, regulatory standards. The

Indian Patent Act, 1970 recognized process but not product patents.
The introduction of TRIPS part of WTO agreement has led to huge
barriers for potential entrants.

(iv) The capital requirement for the industry is very low; creating a
regional distribution network is easy, since the point of sales is
restricted in this industry in India.

2. BARGAINING POWER OF BUYERS: The buyer does not have

much power over the manufacturers because of the presence of
influencing element i.e. the doctors. Due to the extremely fragmented
nature of industry & government policies like DPCO (Drug Price Order
Control), 1970 under which the power to control prices is with the NPPA
(National Pharmaceutical Pricing Authority) the low power of buyers
does not have much effect on the manufacturers. Except in generic &
OTC medicines, the buyer does not normally switch medicines.

3. BARGAINING POWER OF SUPPLIERS: The main suppliers are the

organic chemical industry & labor forces. The fragmented nature of the
organic chemicals industry prevents it from having much bargaining
power over the manufacturers as the switching cost is low for the
manufacturers.

4. THREAT OF SUBSTITUTES: The main substitutes to the synthetic

pharmaceutical industry are mainly the emerging biotechnology
chemical industry. Also in developing countries like India, the
traditional medicines also play a major substituting role.

5. INTENSITY OF RIVALRY: The Indian Pharmaceutical industry is

highly fragmented with around 250-300 manufacturing & formulation
units in the organized sector which contribute to only 70% of the
market share of the total sales in the country. The concentration ratio
(proportion of total industry output by the largest firm in the industry)
for the industry is very low. Also government subsidies have led to the
proliferation of many small players. Since the product patents were not
valid in the country till 2005, the differentiation in the product is very
low. The key driver in this industry is the cost-competitiveness. After
2005, major MNCs like Pfizer & GSK started introducing newer products
in the market thereby increasing competition in the industry
A DVANTAGE IN INDIA

(i) Competent workforce: India has a pool of personnel with high

managerial & technical competence as also skilled workforce. It has an
educated workforce & English is commonly used. Professional services
are easily available.

(ii) Cost-effective chemical synthesis: its track record of development,

particularly in the area of improved cost beneficial chemical synthesis
for various drug molecules is excellent. It provides a wide variety of
bulk drugs & exports sophisticated bulk drugs.

(iii) Legal & Financial framework: India has a 53 year old democracy &
hence has a solid legal framework & strong financial markets. There is
already an established international industry & business community.

(iv) Information & Technology: it has a good network of world class

educational institutions & established strengths in IT.

(v) Globalization: the country is committed to a free market economy &

globalization. Above all, it has a 70 million middle class market, which
is continuously growing.

(vi) Consolidation: for the first time in many years, the international
pharmaceutical industry is finding great opportunities in India. The
process of consolidation which has become a generalized phenomenon
in the world pharmaceutical industry has started taking place in India.
T RENDS IN INDIAN PHARMACEUTICAL INDUSTRY

1. Outsourcing & Off-shoring to Continue: While outsourcing and off-

shoring seems to have taken off in 2007; it has been accelerated even
more by 2010. Pharmaceutical companies are getting more and more
comfortable, experienced and used-to with doing business globally,
especially in India and China.

2. Global Licensing: licensing from companies in India and other

emerging countries.

3. Layoffs and Lean Operations: Pfizer, J&J, BMS, Wyeth and many
others have been announcing their plans for layoffs and lean
operations, thereby shifting major operations to more cost effective
countries like India & China.

4. Growing importance and dominance of generic companies: Bayer,

Ranbaxy, Mylan, Teva, SUN, Dr. Reddy’s, Glenmark, Lupin Labs etc
keep launching more and more generics and also keep moving up the
value chain by focusing on their NCEs.

5. Challenging times for Wholesalers: Wholesalers and distributors face

more hurdles in 2008 as they face more problems with their business
models. More and more retailers, hospitals (customers) and
manufacturers (suppliers) are trying to figure out the true role (and
value) of wholesalers and how to compensate them.

6. M&A / Consolidation: More M&A and consolidation to be seen in the

industry. (Recent witnesses taken over of Ranbaxy by Daiichii Sankyo
and Nicholas Piramal by Abbott)
7. Prevention of Medical errors: Pharma companies are already working
on informatics and other IT tools to prevent medical errors in
partnerships with healthcare institutions.

8. Emergence of new global players: companies like SUN, Daiichii,

Nicholas Piramal, Dr. Reddy’s, Zydus and CIPLA to take lead in a wide
range of M&A activities. More and more of these companies have the
dreams to become leading pharma companies not just in their own
countries or regions but also globally.
S WOT ANALYSIS

STRENGTHS:
(i) Well developed industry with a strong manufacturing base. Cost of
production of drugs is one of the lowest.

(ii) With a penetration of modern medicine less than 30%, India is an

untapped market. The strong marketing & distribution network will
form an added advantage for penetration.

(iii) The high middle class growth has led to the fast changing lifestyles
in urban as well as to some extent in the rural centers. This has
opened a huge market for the lifestyle drugs, which currently have a
low contribution in the Indian pharmaceutical industry.

(iv) Cost of production of drugs in India is one of the lowest. Can

produce drugs at 40-50% of the cost of rest of the world.

(v) Presence of patent protected drugs that ensure future revenue

streams.

(vi) Self reliant technology for production. Excellent chemistry &

process reengineering skills which helps in developing cost effective
processes.

(vii) Due to consolidation of acquisition’s operations, a large pool of

installed capacities exists. Economies of scale in marketing, production
& administration can be garnered.

(viii) Access to a pool of highly trained scientists.

WEAKNESSES
(i) Price regulation – led to reduced pricing ability of the companies.
The NPPA sets the prices of different drugs, which in turns leads to
lower profitability for these companies.

(ii) Lack of product patent- this prevents new drug introduction in the
country & thereby suppress innovation & drug discovery. There is a
lack of experience even to exploit the new patent regime.

(iii) One of the least penetrated markets in the world. Mainly rely on
exports because of slow growth.

(iv) Highly fragmented because of very low entry barriers although

installed capacities are high.

(v) High monetary obligations due to the need for mergers &
acquisitions.

(vi) Low investment in R&D & lack of desired resources make it difficult
to compete with MNCs on a worldwide basis. Few drug discovery
system & low level of Biotechnology add to the problem.

(vii) No strong linkage between industry & academia.

(viii) Shortage of medicines containing psychotropic substances.

(ix) Enough intermediaries are not available for bulk drugs. Lack of
accurate technology for forecasting & strategic future planning.

(x) Quality standards are going to be increasingly tightened over the

course of next 3-5 years. India approached the US FDA to cooperate to
bring the standards of Indian production in same lines of US FDA.
Unfortunately, most Indian companies will not be able to stand this
test.

OPPORTUNITIES
(i) The migration to new patent product regime wil transform the
industry by bringing with it new innovative drugs. This in turn will
increase the profitability of the Indian MNCs & will force domestic
companies to focus more on the R&D.

(ii) New market opportunities are in the way for the Indian
pharmaceutical companies as a large number of drugs are going off
patent in the US & Europe between the years 2005-09. Spreading use
of generic drugs & the fact that generic drugs are commodities by
nature will provide low cost Indian producers with a competitive
advantage.

(iii) The expected growth in the per capita income & opening up of
health insurance sector are the key growth drivers for long term. This
will lead to an expansion of the healthcare industry of which
pharmaceutical is an integral part.

(iv) There exists a significant export potential for the Indian companies
being one of the lowest cost producers. FDA approved plants will act as
an advantage for them.

(v) With the aging of the world population combined with new
diagnoses & new social diseases, the demand for medical products on
a whole is increasing. Also, there is a growing attention to health.
Moreover, with new therapy approaches & new delivery systems,
Indian industry is bound to grow.
(vi) There is a huge potential for the development of India as a centre
for international clinical trials.

(vii) Contract manufacturing arrangements & globalization will act as

additive for easier international trading.

(viii) India being a niche player in the pharmaceutical market has a

huge growth potential. Also, the market saturation point is far away.

THREATS
(i) The future of the current patent regime is questionable.

(ii) Other low cost producers like China & Israel pose a great threat to
the Indian industry.

(iii) DPCO prevents the pharmaceutical companies from being much

profitable & thus from generating surplus that can be invested further.

(iv) Regulatory requirements hamper the R&D efforts of the Indian

companies.

(v) Small pharmaceutical companies face the danger of being taken

over by big players,

(vi) The MRP based excise duty regime poses a threat to the existence
of many small players.

(vii) High cost of discovering new leads to fewer & less frequent
discoveries.

(viii) Greater number of potential new drugs & greater number of

efficient therapies pose a threat to the Indian players.
(ix) High entry & sales & marketing costs are also big threat to the
upcoming companies in India.

(x) Spike in raw material prices, Accelerated generalization &

intensified competition.

(xi) Forex exchange losses & mark to market losses due to the rupee
depreciation in June 2008.
P EST ANALYSIS

To understand the implications of the environment on any industry it is

imperative to study the four cardinal influencers on the industry
namely Political, Economic, Social and Technological factors. It is
rather unfortunate that in India these factors have a rather
disproportionate influence on the functioning of a commercial
organization. From the days of independence the business
environment has been overly regulated by a handful of bureaucrats,
middlemen, businessmen and politicians. Its only a decade since the
country
has seen an emergence of a political thought that encourages free
enterprise. A welcome change indeed!

Political Factors

1. Today there is political uncertainty in the air. A combination of

diverse political thought have got together to cobble together a
rag-tag coalition, that is riddle with ideological contradictions.
Therefore, any consistent political or economic policy can not be
expected. This muddies the investment field.

2. The Minister in charge of the industry has been threatening to

impose even more stringent Price Control on the industry than
before. This is throwing many an investment plan into the
doldrums.

3. DPCO which is the bible for the industry has in effect worked
contrary to the stated objectives. DPCO nullifies the market forces
 from encouraging competitive pricing of goods dictated by the
market. Now the pricing is determined by the Government based
on the approved costs irrespective of the real costs.

4. Effective January, 2005 the country goes in for the IPR

(Intellectual Property Rights) regime, popularly known as the
Patent Act. This Act will impact the Pharmaceutical Industry the
most. Thus far an Indian company could escape paying a patent
fee to the inventor of a drug by manufacturing it using a different
chemical route. Indian companies exploited this law and used the
reverse-engineering route to invent a lot of alternate
manufacturing methods. A lot of money was saved this way.

5. This also encouraged competing company to market their

versions of the same drug. That meant that the impurities and
trace elements found in different brands of the same substance
were different both in qualification as well as in quantum.
Therefore different brands of the same medicine were truly
different. Here Branding actually meant quality and a purer
brand actually had purer active ingredient and lesser or less
toxic impurities.

6. Product patent regime will eliminate all this. Now, a patented

drug would be manufactured using the same chemical route and
would be manufactured by the inventor or his licentiates using
the chemicals with same specifications. Therefore, all the brands
of the same active ingredient would not have any difference in
purity and impurities. The different brands would have to
compete on the basis of non input-related innovations such as
packaging, color, flavors, excipients etc. This is the biggest
change the environment is going to impose on the industry. The
 marketing effort would be now focused on logistics,
communications, economy of operation, extra-ingredient
innovations and of course pricing.

7. In Pharma industry there is a huge PSU segment which is

chronically sick and highly inefficient. The Government puts the
surpluses generated by efficient units into the price equalization
account of inefficient units thereby unduly subsidizing them. On
a long term basis this has made practically everybody inefficient.
8. Effective the January, 2005 the Government has shifted from
charging the Excise Duty on the cost of manufacturing to the
MRP thereby making the finished products more costly. Just for a
few extra bucks the current government has made many a life
saving drugs unaffordable to the poor.

9. The Government provides extra drawbacks to some units located

in specified area, providing them with subsidies that are unfair to
the rest of the industry, bringing in a skewed development of the
industry. As a results Pharma units have come up at place
unsuitable for a best cost manufacturing activity.

Economic Factors

1. India spends a very small proportion of its GDP on

healthcare (A mere 1%). This has stunted the demand and
therefore the growth of the industry.

2. Per capita income of an average Indian is low (Rs.

12,890), therefore, spending on the healthcare takes a low
priority. An Indian would visit a doctor only when there is an
emergency. This has led to a mushrooming of unqualified doctors
and spread of non-standardized medication.

3. The incidence of Taxes is very high. There is Excise

Duty ( State & Central), Custom Duty, Service Tax, Profession
Tax, License Fees, Royalty, Pollution Clearance Tax, Hazardous
substance (Storage & Handling) license, income tax , Stamp
Duty and a host of other levies and charges to be paid. On an
average it amounts to no less than 40-45% of the costs.

4. The number of Registered Medical practitioners is low.

As a result the reach of Pharmaceuticals is affected adversely.

5. There are only 50,00,000 Medical shops. Again this

affects adversely the distribution of medicines and also adds to
the distribution costs.

6. India is a high interest rate regime. Therefore the cost

of funds is double that in America. This adds to the cost of
goods.

7. Adequate storage and transportation facilities for

special drugs is lacking. A study had indicated that nearly 60% of
the Retail Chemists do not have adequate refrigeration facilities
and store drugs under sub-optimal conditions. This affects the
quality of the drugs administered and of course adds to the
costs.

8. India has poor roads and rail network. Therefore, the

transportation time is higher. This calls for higher inventory
carrying costs and longer delivery time. All this adds to the
 invisible costs. Its only during the last couple of years that good
quality highways have been constructed.

Socio-cultural Factors

1. Poverty and associated malnutrition dramatically exacerbate the

incidence of Malaria and TB, preventable diseases that continue
to play havoc in India decades after they were eradicated in
other countries.
2. Poor Sanitation and polluted water sources prematurely end the
life of about 1 million children under the age of five every year.

3. In India people prefer using household treatments handed down

for generations for common ailments.

4. The use of magic/tantrics/ozhas/hakims is prevalent in India.

5. Increasing pollution is adding to the healthcare problem.

6. Smoking, gutka, drinking and poor oral hygiene is adding to the

healthcare problem.

7. Large joint families transmit communicable diseases amongst

the members.

8. Cattle-rearing encourage diseases communicated by animals.

 9. Early child bearing affects the health standards of women and
children.

10. Ignorance of inoculation and vaccination has prevented the

eradication of diseases like polio, chicken-pox, small-pox,
mumps and measles. People don’t go in for vaccination due
superstitious beliefs and any sort of ailment is considered as a
curse from God for sins committed.

Technological Factors

1. Advanced automated machines have increased the output and

reduced the cost.
2. Computerization has increased the efficiency of the
Pharmaceutical Industry.
3. Newer medication, molecules and active ingredients are being
discovered. As of January 2005, the Government of India has
more than 10,000 substances for patenting.
4. Ayurveda is a well recognized science and it is providing the
industry with a cutting edge.
5. Advances in Bio-technology, Stem-cell research have given India
a step forward.
6. Humano-Insulin, Hepatitis B vaccines, AIDS drugs and many
such molecules have given the industry a pioneering status.
7. Newer drug delivery systems are the innovations of the day.
O PPORTUNITIES FOR SUN

It is an International specialty Indian Pharmaceutical Company, with presence in 30 markets.

They make active pharmaceutical ingredients. In branded markets, their products are
prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenterology,
diabetology and respiratory. The corporation's present portfolio consists of a number of
products in various strengths and package sizes, across a variety of therapeutic segments,
including epilepsy and hypertension.

Highly diverse and multi therapy area based portfolio provides an advantage to the company
in exploring new regulated and non regulated markets. The company has production sites at
various locations in India and also outside India. With strategic presence in various regulated
markets such as USA (Caraco), Hungary, Israel (Taro) the company is poised to explore the
generics market share to the maximum.

The company optimally utilized the pre 2005 IPR arena whereby no product patents were
allowed in India and company very accurately developed (copied) various innovator products
developed by various MNC’s outside India. Post 2005, the company has also initiated its own
product and process development R&D whereby it has identified few peculiar therapy areas
and started exploring drugs for that.

Company has also got its own 2 API (active pharmaceutical ingredient) plants where by it
provides the raw material for drug manufacturing for SUN’s own products and also is a great
API Supplier in the market. Due to its strong marketing strategies and easy penetration due to
its already established network, the company stood at first position in top Indian
Pharmaceutical Companies as per Market Capitalization in 2010.
F UTURE OUTLOOK

• Better growth is expected in the domestic market & the players’

initiatives to focus on contract research & manufacturing
services & generics in advanced markets can sustain expansion
in the international markets.

• The pharmaceutical industry is one of the fastest growing sectors

in Indian economy. Vision gain predicts that market for
pharmaceuticals in India has strong potential for increased
growth from 2012 right through to 2023. India has had a strong
domestic pharmaceutical industry and a rapidly expanding
market with a population of over a billion and a rapidly
expanding economy.

• Prevalence values of many diseases are likely to increase with

expansion of population, urbanization and with higher
identification rates in the coming decade.

• India's pharmaceutical market is increasingly important in global

pharmaceutical, with both domestic and foreign companies
benefiting. Healthcare provision – both public and private – is
improving, leading to fast-expanding markets for healthcare
products, especially modern pharmaceuticals.

• As the demand for medicines would never lessen, on the other

hand this would increase owing to new disease discovery & the
discovery of drugs to counter these diseases. So in this situation
 it is evident that the Indian Pharmaceutical Industry has a huge
growth prospects.

• India is an interesting geography for several global drug majors

who are attracted by huge talent pool, scientific skills & cheap
labor that has enabled Indian companies manufacture drugs at
about a third of the cost in the west. There can be an increase in
the number of global players entering the Indian market despite
of the current economic conditions.

• Future state: at least 100 New Chemical Entity’s (NCEs) in

various stages of development; Contract Research: High end
drug discovery services.
C ONCLUSION

The global pharmaceutical industry has grown at 9% in 2007 and

the focus of pharmaceutical market continues to shift towards
emerging countries where the growth rate is higher. As per industry
reports, the size of Indian industry is increasing at more than 10% a
year. Robust economic growth, availability of a skilled scientific
workforce at low cost, a fairly stringent regulatory environment and
largest number of US FDA approved plants outside the USA, makes
India an attractive destination in the eyes of multinational
conglomerates. Contract research and contract manufacturing is
one area offering plenty of opportunities to India. After more than
four decades as a closed economy and 14 years of reform, India has
made its name in the global arena and laid the groundwork for rapid
growth in Industries such as pharmaceuticals and IT. The foundation
is in place for the pharmaceutical industry to substantiate its place
in the world market, but further effort and unwavering commitment
are needed for Indian pharmaceutical companies to emerge as
undisputed leaders in the global arena. The various models used for
analysis have evidently served the purpose. The Porter’s Five
Forces model gives a fair idea about the industry in which a
company operates and the various external forces that influence it.
However, it must be noted that any industry is not static in nature.
It's dynamic and over a period of time the model, which have been
used to analyze the pharmaceutical industry may itself evolve. The
S.W.O.T analysis has been used which analyzes the position of the
industry with respect to its internal & external environment. P.E.S.T
analysis has been used to examine the external environment of the
industry.