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Indian Pharmaceutical Industry

At about US$ 4 billion, the Indian pharmaceutical market accounts for about 1% of global sales of drugs and pharmaceuticals. Yet by volume it is said to account for about 8% - average prices being among the lowest in the world. Abrogation of product patents in 1970 led to the growth of the local generics industry. There are currently about 20,000 registered pharmaceutical companies in India, the vast majority very small or non-operational. About 250 can be said to be large or medium-sized, manufacturing multiple products and operating on a regional or national scale. At the top of this pyramid are the Indian subsidiaries of multinational research-based pharmaceutical companies and the large Indian generic companies operating globally. For some of the latter, the revenue from overseas operations now exceeds domestic sales. In addition to formulation sales, many companies manufacture and sell bulk drugs. Hyderabad is a key location for the bulk drug manufacturing industry with a majority of units located in and around this city in the south central part of the country. The biotechnology sector has seen rapid growth in the last decade. Biotech companies manufacture and sell generic products synthesized using recombinant DNA technology licensed in from overseas partners. Biotech products are sold locally as well as exported. The distribution channel for pharmaceuticals consists of a large number of individual wholesale stockists and retail drug stores. A license is required to stock and sell pharmaceutical products in India.