INDIAN PHARMACEUTICAL INDUSTRY AT A GLANCE
The evolution of the pharmaceutical industry in India has been largely driven by regulatory forces - the DPCO (Drug Price Control Order), which regulated the prices of bulk drugs and formulations, and the Indian Patent Act, which granted process patent to bulk drugs.
These regulations have resulted in the growth of the indigenous pharmaceutical industry, increased availability of bulk drugs at prices lower than those prevailing in other markets, high level of competition in the domestic market, and the emergence of the India as a key exporter of bulk drugs in the world market during the period 1970-1990.
In 1995, the Indian government as a member of the WTO agreed to adhere to the product patent regime by 2005.
As part of TRIPS (Trade Related Intellectual Property Rights) the Pharmaceutical Industry will have the right to patent products as well as processes throughout the world including India.
Being a member of GATT/Trips, India will also have a process and product patents that will be consistent with the patent laws prevailing in the most developed countries.
With the expectation of a product patent regime, the parent companies of a number of multinationals have begun the process of increasing their stake in Indian operations. Multinationals started increasing the pace of new product launch and aggressively building market share by expanding their field force.
Similarly, in order to increase their presence in domestic and international markets, Indian producers also started following a number of strategies, such as, setting up manufacturing and marketing joint ventures overseas, building world class facilities for bulk drug production, entering into alliances with multinationals to launch new drugs and conducting clinical trials in India to enable multinationals to reduce development costs of new drugs.