FUTURE OF PHARMA INDUSTRYAND DIAGNOSTICS CENTRES

FUTURE OF PHARMA INDUSTRY AND DIAGONOSTIC CENTRES

Written by Sparkleminds

The year 2020 has placed enough evidence on the table during this regard. The novel Coronavirus has shaken the whole globe by its roots. This is an example of one of the challenges this Future Of Pharma Industry faces: to constantly update infrastructure and R&D to combat new diseases and develop a cure for existing chronic diseases

The pharmaceutical industry is currently valued at $41 bn.Generic drugs, with 71% market share, from the largest segment of the Pharmaceutical industry in India. This is set to grow as 12% to 14% in finishing year of 2021-2022. In the domestic market by revenue, Anti-Infective (13.6%), Cardiac (12.4%) and Gastrointestinal (11.5%) had the biggest market share.

Curbing Costs:

Everything gets expensive with time. Rising costs and inflation also result in rising medical costs. Making health accessible and affordable for all may be a great task. The government has already initiated efforts therein direction with the Ayushmann Bharat initiative. However, considering that inflation may be an adynamic metric, curbing medical costs will remain an ongoing challenge.

Medical infrastructure:

This includes hospitals, medical colleges and education, medicines, pharmacies, small medical centres, labs, vaccines, machines that are utilized in procedures, the manufacturing infrastructure for medicines and everything that keeps the industry in place. Maintaining the standard of infrastructure and expanding it to all or anyway urban and rural areas is additionally challenge to the corporate.

Foreign regulations:

 Many companies receive tons of their revenues from medical exports. The regulations and compliance norms of foreign countries may be a challenge that Indian pharma companies need to face. Trade restrictions, exports and import regulations, customs and taxes and lots of other caveats come when international trade comes into the image.

Investments and Recent Developments :

The Union Cabinet has given its nod for the amendment of existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 16.86 billion between April 2000 and September 2020 consistent with the information released by the Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent developments/investments within the Indian

The pharmaceutical sector is as follows:

In December 2020, Piramal Pharma Solutions announced plans to invest Rs. 235 crore (US$ 32 million) to expand its facility in Michigan, US, with additional capacity and new capabilities for development and manufacturing of active pharmaceutical ingredients (APIs). In November 2020, Indian Immunologicals (IIL) commenced work on Rs. 75 crore (US$ 10.17 million) viral antigen manufacturing facility in Genome Valley, Telangana, that will enhance its vaccine production capacity by 35% by October 2021.
 In October 2020, six generic drug makers–Dr. Reddy’s Laboratories, ZydusCadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma signed an effect Hidalgo, a state in Mexico, to determine an outsized pharmaceutical cluster for production and logistics in Mexico.
In May 2020, Jubilant Generics Ltd entered into a non-exclusive licencing agreement with US-based Gilead Sciences Inc to manufacture and sell the potential COVID-19 drug Remdesivir in 127 countries, including India. Affordable medicines under Pradhan MantriBhartiyaJanaushadhiPariyojana (PMBJP) achieved a record sales turnover of Rs 52 crore (US$ 7.38 million) in the month of April 2020.

Indian Diagnostic market analysis of 2021:

Growing Prevalence of Diseases and Launch of Technologically Advanced Procedures to Drive Growth” provides a comprehensive analysis of the diagnostic laboratories market. The report includes the cumulative revenue generated by the market players from diagnostic services, including both government and personal diagnostic laboratories. The private diagnostic laboratories have been further explained with details on market share contributed by pathology tests and radiology tests, by Tier I, Tier II and Tier III Cities, and by hospital-based diagnostic laboratories, polyclinics, and independent diagnostic laboratories operating in India. The share by organized and unorganized players has also been provided intimately to obviously explain this competitive scenario within the market. The stakeholders of this report include diagnostic laboratories market players, laboratories equipment providers, companies involved in research and development activities, and therefore the new entrants and venture capitalists who wish to invest in the diagnostic laboratories market in future. Detailed snapshot on pathology tests market and radiology tests market is included within the report back to elucidate facts about the market intimately. The future analysis of the overall Indian diagnostic laboratories market has also been discussed along with recommendations from the analyst view.

The future Map:

Medicine spending in India is projected to grow 9-12% over subsequent five years, leading India to become one among the highest 10 countries in terms of drugs spending.
Going forward, better growth in domestic sales would also depend on the facility of companies to align their product portfolio towards chronic therapies for diseases like cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the increase.

India needs clear and proactive interventions to form sure an all-conducive supply chain. This may not only boost local manufacturing, but also find ways to reduce dependence on external factors.. In consonance thereupon policy, it is vital for the government to work towards revamping the structure of the pharmaceutical industry. The govt launched targeted financial incentives to market manufacturing of raw materials, and to bring back a bigger production of APIs to India. The Union Cabinet took a decisive step to work out three API parks with common utilities, identifying and reducing the dependencies on China for 53 APIs, introduced the assembly Linked Incentive (PLI) scheme to further reiterate India’s aim to be self-reliant.

Around 35%-40% of the capacity is idle. The government must efficiently use the prevailing API units. Consistent with a McKinsey report, the driving factors for growing the domestic market in India are often attributed to the upper burden of diseases. The local production of APIs is incentivized through the rapidly growing population of the country. This provides avenues for pharmaceutical companies to not only cater domestically, but also enter international markets with comparatively higher age groups.

Shortage of delivery points and therefore the lack of accessibility to drugs continue to be bottlenecks even for the pharmaceutical companies to completely utilize the domestic market. The affordability of drugs will rise because of sustained growth in incomes and increase in coverage. Greater spending on healthcare and government sponsored programmes are necessary to hide the agricultural markets. Improving process is imperative for investments in healthcare infrastructure and financing, and better per capita income.

For a sustainable market and a robust rate of growth, innovative business models should be developed for equilibrium in drug price controlling and native manufacturing costs. Though the govt. has eased its protectionist policies, timely and effective implementation is crucial to affect the challenges of the pharmaceutical sector.

As countries are willing to require an edge within the Indian marketplace for the supply of COVID-19 vaccine and medical equipment, this is often the prospect for India to become truly atmanirbhar within the pharmaceutical segment.The Indian Government has taken many steps to set back costs and convey down healthcare expenses. Speedy introduction of generic drugs into the market has remained focused and is predicted to profit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies. Hence for now it can only be said that the situation is yet to be discovered to come any specific conclusion.

Conclusion

Moving from a time of transition to a bright future will depend upon how the Indian pharmaceutical industry can tap into the short- and longer-term opportunities identified above. What is clear is that the time is true for all stakeholders, from government, academia, and industry to take a position during this future, to realize the Indian government’s target of becoming a $5 trillion economy by 2025. However, to do so, the pharmaceutical industry will have to take some well-thought-out risks, embrace the proper opportunities and, importantly, fire on all cylinders! One solution to scale back risks is to optimize the potential of digital technologies to assist Indian pharmaceutical companies improve the efficiency and effectiveness of their drug development process, from discovery, through clinical trials to regulatory approval, making the entire process faster and cheaper than what’s currently possible.

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