PHARMACEUTICAL SECTOR: HEALTHY OUTLOOK
Article Abstract:
The Indian pharmaceutical companies have attracted the attention of the foreign portfolio investors. India has signed the GATT and it should introduce product patent for the pharmaceutical products instead of process patent. The industry is fragmented with 80 percent of the companies posting sales of less than Rs100 crore. The top 5 companies of the industry - Ranbaxy, Glaxo, Lupin, Hoechst and Cipla - contribute 19 percent to the turnover of the pharmaceutical industry. The top 10 companies of the industry account for 31 percent of the market. The pharmaceutical industry is consolidating itself now. There are 24,000 companies, of which 250 are in the organised sector and 15,000 in the small- scale sector. The total investment by the small-scale units is Rs1,200 crore. The investment for one unit works out to Rs50 lakh. Post-GATT, the prices of the drugs are likely to increase. The Indian companies have to get licences for the launch of new drugs. Licensing agreements may determine the price of drugs. About 7 percent of the Indian market will be under patents by 2000 AD. Indian companies have an opportunity to tap the $30 billion generic drugs market by 2000 AD. (rk)
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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THE NEW DRUG POLICY (DPCO 1995)
Article Abstract:
The drug policy - the DPCO 1995 - has reduced the number of price-controlled drugs from 142 to 76. It has guaranteed 18 percent return on the net worth or profit based on return on capital employed in companies making drugs from the initial stages. It has removed controls on units with sales of Rs40 million and less. To promote research and development, the DPCO 1995 has proposed a 1 percent cess on production of drugs. The bio-technical agreements with foreign companies will get automatic approval. It has de-licensed all drugs except 5 bulk drugs of the National Health Plan, recombinant DNA and cell tissue. It has allowed higher rate of returns on the price-controlled drugs. It has fixed a ceiling for the price- controlled drugs. The DPCO 1995 has recommended setting up of a National Pharmaceutical Pricing Authority for controlling the prices of drugs. The DPCO 1995 was notified by the Government of India on January 6, 1995. (rk)
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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DUPHAR INTERFRAN
Article Abstract:
Duphar Interfran is a pharmaceutical company. Solvay-Duphar of Holland and Crookes Lab of UK hold 39.8 percent stake in Duphar Interfran. (tsm) (kvr)
Comment:
Duphar Interfran is a pharmaceutical company. Solvay-Duphar of Holland and Crookes Lab of UK hold 39.8 percent stake in Duphar Interfran.
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1999
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