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Case Title:

The Indian Pharmaceutical Industry: Opportunities and Challenges

Publication Year : 2003

Authors: G Srikanth

Industry: Home Appliances and Personal Care Products

Region:India

Case Code: VCA0001

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
To become part of the World Trade Organisation, India signed the General Agreement on Tariffs and Trade (GATT) in December 1994, packaged with it the trade related aspects of intellectual property rights. By virtue of signing the GATT, India was bound to relinquish the 'process patent' policy and recognise only 'product patents'. Protected by the 1970 Patents Act, Indian pharmaceutical companies survived solely on drugs that were reverse engineered. The growth of the industry was dependent on the generics market only. The blueprint for the future however depended on where the Indian pharmaceutical industry fit in the value chain and what steps were needed to move up in the chain. With many drugs going off patent, a huge opportunity in the global generics market is set to emerge. But the question is whether that alone is sufficient for the Indian companies to survive. Can the Indian pharma companies be global players post 2005?

Pedagogical Objectives:

  • To discuss the steps that the Indian pharmaceutical industry can take to move up the value-chain in the light of the GATT agreement
  • To discuss the possible future growth opportunities for the Indian pharmaceutical industry and how the Indian pharma companies can prepare themselves to meet the challenges of the product patent era.

Keywords : Indian pharmaceutical industry, Pharma value chain, Research and development,Government and Business Environment Case Study, Drug Price Control Order, DPCO, Generic drugs and patented drugs, General Agreement on Tariffs and Trade, GATT, Product patents and process patents, Trade related intellectual property rights, World Trade Organisation, Business Environment Case Study, Generics market, Pharma industry challenges, Pharma opportunities and challenges, Formulations and bulk drugs

Contents:

  • The Origins
  • Generics Market: The growth engine
  • The Value Chain

  • Research & Development
  • Government's Role
  • Opportunities and Challenges

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