Impact of Demand and Supply

factors on Pharmaceuticals
 Introduction
India is the largest provider of generic drugs
globally. Indian pharmaceutical sector industry
supplies over 50 per cent of global demand for
various vaccines, 40 per cent of generic
demand in the US and 25 per cent of all
medicine in UK.
 Evolution of Indian Pharmaceutical Sector
•India a major destination for generic •2013: New Drug Pricing Control Order
drug manufacturing issued by Directorate of Food and Drugs
•Approval of Patents (Amendment) Act this will reduce the prices of drugs by 80
2005, which led to adoption of product per cent
patents in India •2015: India has 10,500 manufacturing
units and over 3,000 pharma companies

•Indian Patent Act passed •In Union Budget, 2016,

in 1970
•Several domestic
companies start operations
•Increased patent filings by FDI increased to 74 per
pharma players
cent in existing
•The National Pharmaceutical pharmaceutical
Pricing Policy, 2012 (NPPP-2012) companies
•The Government of
India unveiled 'Pharma
Vision 2020' aimed at
Supply-side Drivers Of Indian Pharma
Sector
Launch of patented drugs

Scope in generics market

Medical Infrastructure

OTC drugs

Government Policies
Demand-side Drivers Of Indian
Pharma Sector

Accessibility

Acceptability

Affordability

Changing disease profile

 CONCLUSION
• Due to increasing population and income
levels, demand for high-end drugs is
expected to rise.
• With 70 per cent of India’s population
residing in rural areas, pharma
companies have immense opportunities
to tap this market .