Published on November 25, 2013

The success of Indian firms in the Pharmaceuticals Company and the generics market has been a prominent topic since many years. The tremendous growth potential of the huge Indian market and the focus on the healthcare sector in western markets are the primary reasons for these trends. Indian firms have ambitions on a global level and have acquired companies internationally not only to cater to the development of R&D capabilities and move into new drug development, but also to enter new markets. A sustained drug delivery mechanism is the prime concern.

The Pharmaceutical industry is gaining investments from foreign companies to improve the technology and research standards. Advanced technology helps the Indian Pharma industry to come up with new medicines and making new variants of the product. According to recent report the growth of Indian Pharma sector has dropped to 9.8 % from 16.6 % compared to last year.

Several issues hampering the Pharma sector are like delays in clinical trial approvals, issues over FDI policies, new pricing policy and uniform code for sales and licensing. MNC’s are the worst affected compared to domestic players. Government is planning for new measures on limiting the investments by foreign companies. The companies will not be allowed to gain 100 percent stake in Indian companies and will get set of terms and conditions to follow in order to acquire Indian Pharma Company.

According to some sources, Indian government is planning to put an Investment Cap on foreign investment in the local companies. It is proposed that now the investment would be limited to 49% in the ‘rare and critical’ drugs. This year the investment has been at USD 1.07 billion, erasing concerns about the slow down. According to a CII-PwC report, Indian Pharma market has been valued at Rs. 72,069 crore and growing. This market has grown in spite of the slowdown that hit this industry. A boost in the Pharma market is said to be the Advanced Pharma and Allied Machinery Technology.