Indian Pharma Industry free essay sample

Every industry has its own sets of advantages and disadvantages under which they challenges the industry faces are: * Regulatory obstacles * Lack of proper infrastructure * Lack of qualified professionals * Expensive research equipments * Lack of academic collaboration * Underdeveloped molecular discovery program Government Initiatives: The government of India has undertaken several including policy initiatives and tax breaks for the growth of the pharmaceutical business in India. Some of the measures adopted are: * Pharmaceutical units are eligible for weighted tax reduction at 150% or the research and development expenditure obtained. Two new schemes namely, New Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Program have been launched by the Government. * The Government is contemplating the creation of SRV or special purpose vehicles with an insurance cover to be used for funding new drug research. * The Department of Pharmaceuticals i s mulling the creation of drug research facilities which can be used by private companies for research work on rent. We will write a custom essay sample on Indian Pharma Industry or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Pharma Export: In the recent years, despite the slowdown witnessed in the global economy, exports rom the pharmaceutical industry in India have shown good buoyancy in growth. Export has become an important driving force for growth in this industry with more than 50 % revenue coming from the overseas markets. For the financial year 2008-09 the export of drugs is estimated to be $8. 25 billion as per the Pharmaceutical Export Council of India, which is an organization, set up by the Government of India. A survey undertaken by FICCI, the oldest industry chamber in India has predicted 16% growth in the export of Indias pharmaceutical growth during 2009-2010. Corporate Social Responsibility-Meaning: In the 1990s, when one spoke of Corporate Social Responsibility, it was very quickly concluded to be donations. It was understood to be a philanthropic gesture which the organizations undertook as their responsibility towards the society. In this context, Corporate Social Responsibility CSR or Corporate Citizenship had different implications for different companies. For some companies, CSR could largely mean compliance and altruism. Many others would observe it as a more strategic framework that took into account a companys relationships and overall impact on the society. Companies also have a way of practicing CSR internally within he organization for their employees and associates. In the twenty first century, however, companies have been generating innovative ideas and methods to incorporate social responsibility in congruence with organizational goals. To implement these social goals, the companies are partnering with the government and the Non-Government Organizations (NGOs). With increased competitiveness in the private sector, it is critical for an organization to leverage its social activities in order to gain a competitive advantage. The increased credibility and goodwill earned from the customers and associates is an invaluable ntangible asset for the organization. An example is of the pharmaceutical industry, where it becomes imperative to either collaborate with NGOs or with the government affordable prices. This sector has strict price controls and regulations by the government. Therefore, only by partnering with the government, hospitals and the society can the company introduce drugs at affordable prices for distributive Justice. The conception of corporate social responsibility (CSR) is inimitably coupled to a countrys identity in which it primarily operates and therefore, the resulting policies nd programs of CSR are inherently tied to the distinct social, political and economic systems in which the company operates. Key Players in Indian Pharmaceutical Industry: There are several national and international pharmaceutical companies that operate in India. Most of the countrys requirements for pharmaceutical products are met by these companies. Some of them are briefly described below: Ranbaxy Laboratories Limited: The Ranbaxy is a pharmaceutical company which was incorporated in 1961 in India. Its a public sector company. Ranbaxy Research Foundation was established in 1985. Production start-up at the modern APIs plant at Toansa in Punjab, make the countrys largest manufacture of antibiotics. This plant gets US FDA approval in 1988. Ranbaxy was granted its first US patent, for Doxycyline. Ranbaxy enters in to an agreement with ELL LILIY Coof USA for setting up Joint venture in India. Company enters into an agreement to set up a Joint venture in china in 1993. Ranbaxy enucleates mission to become a Research based International Company. The new Research Center at Gurgaon. The company established Regional Headquarters in UK and US. Acquisition of Ohm Laboratories, a manufacturing facility in US. Inaugurations of FDA approved, state-of the new manufacturing wings, at Ranbaxys US subsidiary Ohm laboratories. Ranbaxy Laboratories Ltd crosses a sales turnover of Rs10000 million, with its export reaching an all time high of Rs 5000 million in 1997. In 1998 Ranbaxy enters USA, worlds largest pharmaceuticals, with product under its own name.