PHARMACEUTICALS 2017-05-12T11:14:39+00:00

The pharmaceutical Industry in India may be broadly classified into two types of companies, namely Domestic Companies and Foreign Companies (MNCs). The Industry itself is highly fragmented with about 24,000 players, of which the top 300 are responsible for approximately 60% of all sales.

The prevailing conditions in India, particularly the high burden of disease, greater incomes due to economic growth and improving Infrastructure and finance for healthcare are all encouraging growth in the domestic sector as found by the PWC – CII report titled “India Pharma Inc: Gearing up for the next level of growth”. The momentous increase in cardiovascular, respiratory and other diseases along with the remarkable income of a majority of the population had resulted in the focus of the Indian Pharmaceutical Industry being oriented mainly towards therapeutic purposes. However, with the increasing life expectancy and growing literacy throughout the country, the lifestyle segment of the industry is expected to boom in the coming years. Overall, the PWC-CII report estimates that if the business strategy of Pharma companies is evolved to maintain the current Compounded Annual Growth Rate of about 15%, in terms of value the Indian Market has the potential to be in the top 10 Global Markets by 2020.

A report by the Department of Industrial Policy and Promotion (DIPP), India has stated that Foreign Direct Investment of US$ 11,391.03 million USD had been made in this sector from April 2000-2013. The further relaxation of governing policies as well as the bullish outlook towards the industry in general has led to expectations of significantly higher investments in the years to come.

While the sector is showing strong growth, there are a multitude of challenges still faced by companies falling under this Industry. Among other things, the compulsory licensing system, the impact of the TRIPS agreement and problems with patents and related disputes under The Patents Act, 2005 are sufficient to confound the best of people. Our firm aims to simplify and deal with all legal issues faced by our Clients in a straightforward and intelligent manner, leaving our clients to worry only about the business section of their operations.


[1]Equitymaster, ” (Https://wwwequitymastercom, ) <https://www.equitymaster.com/research-it/sector-info/pharma/Pharmaceuticals-Sector-Analysis-Report.asp> accessed 16 June 2015