SWOT Analysis

Of Indian Pharmacy Industry

By

Hanumantha Rao.G
 STRENGHTS:

• Low cost of production.

• Large pool of installed capacities

• Efficient technologies for large number of   Generics.

• Large pool of skilled technical manpower.

• Increasing liberalization of government policies.

Weakness:
1. Fragmentation of installed   capacities.

2. Low technology level of Capital Goods of this section.

3. Non-availability of major intermediaries for bulk drugs.

4. Lack of experience to exploit efficiently the new patent regime.

5. Very low key R&D.

6. Low share of India in World Pharmaceutical   Production (1.2% of world

production but having 16.1% of world's population).

7. Very low level of Biotechnology in India and also for New Drug
Discovery Systems.

8. Lack of experience in International Trade.

9. Low level of strategic planning for future and also for technology
forecasting.
Opportunities:
1. Aging of the world   population.

2. Growing incomes.

3. Growing attention for health.

4. New diagnoses and new social diseases.

5. Spreading prophylactic approaches.

6. Saturation point of market is far away.

7. New therapy approaches.

8. New delivery systems.

9. Spreading attitude for soft medication (OTC drugs).

Opportunities:
10. Spreading use of Generic Drugs.

11. Globalization

12. Easier international   trading.

13. New markets are opening.

Threats

1. Containment of rising health-care cost.

2. High Cost of discovering new products and fewer discoveries.

3. Stricter registration procedures.

4. High entry cost in newer markets.

5. High cost of sales and marketing.

6. Competition, particularly from generic products.

7. More potential new drugs and more efficient therapies.

8. Switching over form process patent to product patent