Pharma industry is a giant in the western world, especially the US. But Indian pharma industry has become a force to reckon with across the globe, thanks to its cost-effective generic drugs. Various medicines and procedures that are customer-centric have made the industry highly competitive in world markets. Despite all the hurdles, it is a thriving industry and the government of India has various plans and a vision 2020 for the pharma sector.
Astro-strategist Hirav Shah happens to be a pro in providing solutions to the various hiccups that could affect small, medium and large pharma industries
Pharmaceutical industry is huge these days and when we say huge, it’s really huge. During the pandemic, the industry has geared up to bring out a vaccine at the earliest, both in terms of staying on top of things and in keeping with their philanthropic mission.
The human race has been inflicted with a variety of viruses in the last couple of decades like Sars, swine flu, ebola and now corona or COVID-19. Alongside producing constraining vaccines for these sudden outbursts affecting people and animals, the pharma industry has also been busy trying to find ways in which they can reduce the pain and agony of the common man. Various innovations and developments have become commonplace with countries vying with each other to come up with cures and remedies for various ailments and conditions.
While mainstream pharma companies have been involved in money-centric research & development, there has been a huge surge in alternate medicine with people reverting to nature to find solutions for their problems. This, of course, has marked a dent in the earnings of the pharma industry. But the industry itself is so large and populations so varied and diverse, that the impact is merely partial for now.
In a country like India, the government has passed a law saying that a new crop of ayurvedic practitioners can perform surgeries for certain conditions. This clearly shows that the pharma industry might accept the importance of alternative medicine in curing a person of ailments big and small.
Already a lot is being spent on R&D to develop non-invasive, quick and precise procedures for various conditions.
After the US, which heavily invests in the pharma sector, India has now emerged into the pharma capital of the world. With the development of the COVID vaccines, the world is looking at India as a credible partner in producing cures for diseases, both known and newly discovered.
How pharma industry sustains itself
1) Large market size: There is a huge market for drugs, especially western drugs these days. This has led to partnerships between companies across the globe. India has a head-start in the market as south India is a pharma hub, which supplies medicines and vaccines to various countries around the world. The logistics and supply chain ease has also increased the demand for Indian pharma products. In addition to that, the domestic market is huge and Indians can get generic drugs at a low cost, which is also bolstering the market.
2) Low cost of drugs and procedures: India boasts of high numbers of well-trained chemists. This provides a reliable market for pharmaceutical industries. The availability of generic drugs has reduced the cost enormously for the customers. This means that Indians can get generic drugs from recognised chemists.
Government of India on its part is also taking various initiatives to ensure that the citizens get access to affordable medications by setting up its own drug store chain. They are also partnering with small and medium scale companies to maintain its supply chain so its citizens have access to high-quality and low-cost generic medicines.
Also, setting up of a FDA-inspected plant in India is 50 per cent cheaper when compared to a developed country. The production and operation costs are 40 to 70 per cent lower when compared to developed nations. And last but not the least, in a country brimming with population, labour costs in India are on an average 60 to 70 per cent less than those in developed countries.
High quality procedures are conducted at lucrative packages which has made medical tourism popular in India. People from various countries come here to make use of these special packages, which also promise good hospital care.
3) Intense competition: With an increase in pharma manufacturing companies in India, there is bound to be high competition and growth. This has helped the customers as this directly impacts prices.
Enhanced medical infrastructure, creation of new markets, increased chronic disease diagnosis and launch of patented products has pushed the growth of the pharma sector in the country. Thanks to cheap labour, affordable equipment, reasonable property rates and low-cost utilities have all contributed to exponential growth in the sector. Now, the government is also providing loads of incentives after identifying the potential in the vertical. They are also promoting India as a reliable and safe bet for foreign patients.
4) Manufacturing plants with state of the art technology: Indian pharma giants are huge. They have the capacity and capability to invest in extensive R&D and come up with new products as when the need arises. The plants are constantly upgrading their technology to be on par with their western counterparts and meet international standards.
The manufacturing plants in India are FDA approved which ups their efficacy.
Challenges encountered in pharma industry
a) Increased consumption of generic drugs. Since 2017, the FDA has begun a push to get low-cost generic drugs into the market. This creates cost issues in the pharma sector, which is capital intensive. While government policies point towards low-cost affordable drugs, the pharma sector is in a dilemma.
b) Legal liability of opioid addiction: Getting addicted to certain pain-killers results in opioid addiction. Also, if the patients do not take the advice of the doctors seriously, this can become a liability for doctors, especially in countries where they can be sued for lapses in treatment.
c) Product liability: There are no guarantees in the pharma industry. Years of research could yield results or may go waste. Also certain drugs work well with certain body types and can be hazardous for others. This makes it a rather unpredictable industry. This can lead to legal action in western countries.
d) Technology: Today, technology is driving the world. Due to this, processes are getting impacted. New technological break-throughs need to be adapted world over. This is cost-intensive and also needs heavy investment in terms of time and labour.
e) Counterfeit drugs and global quality control: This is a major issue for the pharma sector. While low-cost drugs are government approved, counterfeit drugs flooding markets is a huge pain point for pharma giants. Then there is the need to adhere to global quality guidelines, in accordance with local laws.
f) Patent issues: A pharma company can produce a drug or vaccine, but it becomes marketable only when the patent issues are cleared. This means a lot of paperwork, showcasing their product on various platforms before it gets the final approval or rejection. Big pharma giants have been consistent in their accusations against Indian companies over patent issues.
g) Stiff competition: Indian pharma companies have to face extreme competition from pharma firms in China, Japan and Israel. When Indian firm Cipla supplied HIV drugs at one twenty fifth the cost of other manufacturers, it created a ripple effect in the industry. The Indian government too flaunted its Vision 2020 for the pharma sector.
But intense negative lobbying and competition mar the pharma sector in India.
h) API dependence on China, supply chain risk: Indian pharma companies rely on China for Active Pharmaceutical Ingredients or APIs. China is the largest market which produces and sells APIs to the rest of the world. Thanks to COVID, this has taken a hit and is a new problem for Indian companies.
i) India’s position at risk: India’ medical diplomacy wherein a country provides much-needed medicines and medical personnel to countries has gained prominence in the past few months. However, with less APIs, India might lose out as a reliable and consistent market. Many feel boosting the production of raw materials with due clearances from the government will help India retain its position, despite low supplies from China.
Why revenue forecasting is needed in an industry that is being talked about around the world
India has come up with COVID drugs and has garnered respect from world nations. The main point to be noted here is the cost-effectiveness of the vaccines.
However, the pharma industry by its nature is capital incentive. Money plays a very important role in the running of the firm, in procuring raw materials and in paying labour costs.
Despite all hurdles, Indian pharmaceutical sector is expected to grow to $100 billion, while the medical device market is expected to grow $25 billion by 2025.
But the US spends heavily on the pharma industry, probably next to defence industry and was the world’s largest single pharmaceutical market generating more than $490 billion in 2019. The US market accounted for 48 per cent of the global pharmaceutical market.
Why go for services of astro-strategist Hirav Shah?
That’s because one wrong advice can mar the future of a firm forever. Different industries have different consultants to address issues. But then they provide a one-sided viewpoint, which is not holistic. For this, companies shell out huge amounts of money with no great gains.
Hirav Shah happens to be an astro-strategist. From the very term, it is clear that he is no normal astrologer, he is a mere business consultant or Business strategist.
He has years of experience dealing with various businesses, providing them solutions that are market-friendly. He is a Business Analyst and Business Strategist who can immediately see a problem coming and aid in providing an appropriate solution. His deep knowledge in various fields and his belief that seeking advice from the right person at the right time, has brought him clients from around the world.
Despite his busy schedules, Hirav Shah makes time to bail out small, medium and large industries from being disaster-prone.
His art of mixing the ancient science of astrology with modern-age business rules and practices make him a go-to person for financial consultations.
Problems come in various forms. But financial problems can disrupt the future of a firm. Hence, Hirav Shah makes a personal prediction of his clients, cutting out the deep astrological jargon, and adds that to time-tested business solutions. Hence, one gets a complete package, so they can plan for their safety and securely.