Pharma sector a global scenario Abstract:

In the global market, the position of the pharmaceutical industry is not parallel as compared to other information and technology based industries. Among the Leading industries, the pharmaceutical industry lacks behind in the growth rate as far as innovative research, capital investment and government regulations are concern. Most of the countries simply depends on bulk production of the generic drugs and not focused on core research. In comparison with the growth rate of the electronic and IT industry stands first where as the pharmaceutical comes at the 9th position. The new rule regarding the product patent had made a huge impact on growth of the pharmaceutical sector in developing country. Many of the small-scale pharmaceutical company in developing countries are either closed down or stopped their business activities in the last few years. It is due to un-favorable government policies, their inability to invest capital in research of new drugs which is essential to compete with large companies in the changing business environment. The world pharmaceuticals market is forecast to grow with 11% percent or more from uptill 2020 which can be increased if companies invest more in drug research sector as well promotion, shortens the period of clinical trials and specially the government has to focus more on growth of small scale sector in developing countries by liberalization of regulations and policies like exemptions in taxes and more research oriented funding to improve the future of the pharmaceutical sector globally. Keywords: Pharma Market, Global Market, Capital investment, Time period, Patent, Government Policy

Introduction:
Pharma Market Pharmaceutical industry serves human health. As there are many diseases prevalent in the community of the globe, drugs are essential to cure them. This work is done by Pharma companies.

The pharmaceutical industry develops, produces, and markets drugs which can be used as medicines. There are major two categories one BRAND and another GENERICS. They have different laws and regulations regarding the patenting, testing and marketing. At present, total pharmaceutical market comprises most by prescription drugs both in terms of value as well as volume. Prescription products are of two types, synthetic one which have got a long history and the vaccines which are obtained from the microbes or latest one developed from novel techniques like hybridoma technique. The remaining market is of over the counter medicines (OTCs), which can be purchased without prescription. Both prescription and OTC medicines can branded or generic depending on the company whether it is patented product of that company or out of patent one or given a exclusive right for marketing.(1,2,3) Global Market
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With development in terms of technology, human resource, global peace Industries are extending their business to the international level by coming out of their national barriers. The companies in various sectors(industries) are taking into account all the demographic, social, technological and political factor in to account before taking decisions, making marketing strategy and before any merger and acquisition outside the county. There are various other industries which are as important as that of Pharmaceuticals like Electronics, FMCG, Travel and tourisms, Automobiles etc. Major player which strengthen the global market are: - Energy sector - Consumer goods -Transportation industry - BPO and KPO These industries suffered a lot during the recession and are soon going to recover from it as the research based success is more in providing several ranges of products and services. Provide consumer with daily use products in wide ranges and also services which makes life easy.

Stand Of Pharma Industry In Global Market:

In the global market, the position of the pharmaceutical industry is not parallel as compared to other information and technology based industries. Among the Leading industries, the pharmaceutical industry lacks behind in innovations as far as the research is concern. In comparison with the innovation, electronic and IT industry which stands first where as the pharmaceutical comes in the 5th position and with growth rate it comes at the 9th position. The total world pharmaceutical market is covered mainly by US, Japan, France, Germany, UK, Italy, China, Canada, Spain, Brazil etc. (Source: IMS, Health) Percent of rating category asinnovativeamong currently available product:Table 1 and 2: Industrial sectors(category) Electronic equipment Computer equipment Cameras and video equipment Household products % INNOVATIONS 54 % 53 % 50 % 32 %

Pharmaceuticals Food and Beverages Daily use products **sectors

29 % 28 % 24 % Positive ratings Positive ratings 2007 2008

Technology Travel and tourism Retail Consumer products Telecom Automotive Airlines Insurance

71 54 52 51 45 37 31 28

73 55 50 47 45 38 26 24

Pharmaceutical Energy Tobacco industry

28 26 9

26 28 10

**The reputation of the pharma industry continues to lag behind other consumer-facing businesses, based on Harris Interactive's latest survey into corporate reputations.

Issues To Be Handled:
(1) Capital investment:(4,5,6) The pharmaceutical sector serves a lot for the global sector and its part is very important. Thus investment on the research work of pharmaceutical field has to be increased to serve best to the global sector. The entire pharmaceutical market lacks in the global investment so enough funds are not raised for the medium and small scaled industries to do the research.

There are only countable companies which are involved in the research of innovative molecules, which has to be increased. The current Scenario of R and D investment of Pharma companies in comparison to the other global industry is:(7,8) Table 3:

RANK 2010 1 2 3 4 5 6 7

Company

Sector

Country

R-D Expenditure(m)

% R-D RANK Growth 2009

Toyoto Roche Microsoft Volkswagen pfizer Novartis Nokia

Automobiles

Japan

6014 5688 5396 5144 4802 4581 4440

-6 9 -3 -2 -2 2 -6

1 4 2 3 6 10 8

Pharmaceuticals Switzerland Software Automobiles Pharmaceuticals USA Germany USA

Pharmaceuticals Switzerland Technology Hardware Finland

Johnson and johnson

Pharmaceuticals and other

USA

4326

-8

Samsung

Electrical equipment

South Korea Germany

4007

12

10

Seimens

Electrical

3805

18

equipment
Solution:

So the entire pharmaceutical market should do the global interaction to bring more and more investors in the sector so that the funds can be raised for the Novel Research work. Novel Drug delivery system are becoming part of emerging era of medicine. The market is growing and has lots of potential in it. In coming 10 years, many new products are going to be launched which will account for raising global market of advanced targeted delivery products to approximately US$10 billion. (2) Time period:(9,10,11,12,21) The period from discovery, synthesis to release a drug molecule in the market is about 10 to 15 years. During this period, companies have to do large investments and the returns are not confirmed as the molecule success is not predetermined.

Drug discovery Pre-clinical

Clinical trials

FDAreviews

Phase 4

3-5 years

1.5-2 years

6-7 years

1.5-2 years

continued

Examples : The returns in the critical antibiotic is not the same with the company invested in its research. Thus the period has to be reduces, as no much changes can be done in clinical and preclinal trials as they are compulsory. Only if the entire work is done by single domain then it can be done faster as compare to distributing it to different department.
Solution:

The period of process chemistry can be reduced by implementation of innovative techniques. Also the adoption of various electronic devices can help in shortening the clinical trial period especially reducing the time spent on data accumulation. Biomarker discovery is very promising for finding new relevant markers rapidly, without the details of mechanism of diseases thus saving time in the discovery process. As the use of inulin, which is used as marker led to discovery of creatinine. Its the major interest of pharmaceutical industry as biomarkers can solve various challenges in predicting diseases during the clinical trials by acting as intermediate markers. Biological system can be clearly understood by various computational system of cells, tissues and organisms. This systems are now being explored by pharmaceutical companies to maximise their chances in converting targets into therapies. Various computational methods are ligand based drug design, drug target docking, quantitative structure based design etcetera. Thus it would be son fully implemented with co-ordination of pharmaceutical industry and regulatory bodies. The future success of the entire pharmaceutical market depends on the success of PIPELINE drugs. examples: The companies like Pfizer has 252 drugs under research in phase 3 clinical trials. (3) Patent:(14,17,19) The new rule regarding the product patent had made a huge impact on growth of the pharmaceutical sector in developing country The number of the patent filing has been decreased in the developing countries. Though the Patent System is important for Industrial Growth but it should be such that it should encourage the growth of the small scale industries. The number of patent filing lacks in Pharmaceutical and biotechnological industry as compared to other industries. As shown by the survey done by DOLCERA. Graph 1:

Entirely it is co-related that there should be enough funding so that small scale industries along with major player can involve in research work and so more patents can be filed.
Solution:

The best way is by exploring the work done by various post graduate students at college level. Industries can collaborate with the universities especially in developing country like India so that best potential can be explored and ideas can be commercialize. Various universities have come up with University-Industry partnership cell so that company can explore best ideas of the young students. Example: AICTE sponsored Partnership cell established at Manipal University, where students projects are shared with the company experts. There should be special amendment in the patent law which can encourage small scale sector to participate in research. In developing countries like India, government along with association with the regulatory body should allow easy access to patents documents, which can be easily downloaded and their legal status can be accessed.
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Patents are the sign of development in research for a developing country. Hence every research work should be paid importance to convert it into reality which would serve the humanity.

(4) Government Policy:(15,16,18) The Drug price control order (DPCO) of the government is not benefiting the sector. Though it is in favor of the patients but the government should also look for the development of the industry. SSI units were introducing about 1,000 brands every year with licenses from the state drug controllers, this number has shrunk to less than 100. AS New drug registrations are expensive for the SSIs. So government should give appropriate funding to boost up the healthcare sector as far as SSIs are concerned.
Solutions:

The government should take following measures to give a boost to pharmaceutical sector in the developing countries:- To give adequate funds for research and development. - Gives liberalization in the Drug price control order (DPCO). - Special funding program for the small scale industry. - Focus on the development of the infrastructure of marketing of the generic drugs.

Conclusion:
The global trend is set where innovations drive the industrial growth. Other consumer facing industries are growing more as compared to pharma sector due to more rapid rate of innovation. Pharma sector is giving great competition to it but lacks behind due to various factor. The world pharmaceuticals market is forecast to grow with 11% percent or more until 2020. (20) This growth rate can further be increased by: - Increasing investment more drug research sector. - Reducing the period of clinical trials. - Focusing on growth of small scale sector in developing countries.

- Exempting taxes and funds provided in developing country.