11 April 2009

Effect of Recession on Indian Pharmaceutical Industry

The impact of Global Meltdown has started showing on the pharma industry with the fig. of exports in dollar terms down 2 per cent, perhaps for the first time in recent years, during October 2008.

According to monthly analysis of India’s pharmaceutical exports between April and October 2008 prepared by the Pharmaceutical Exports Promotion Council (Pharmexcil), the exports of pharmaceuticals and fine chemicals stood at $646.41 million at the end of October 2008 compared with $659.21 million in the year-ago period. This marked a 1.9 per cent decline.The last quarterof this financial yearis very tuff for marketeters. The forthcoming election and recession impact showing their strong presence in this quarter.

The last quarter of this financial year waiting for big aids from Goverment institution but their is no more initiatice is taken by them. All business tigheten their spending budget due to limitation on liqudity, the financial expert bussy with balancing their financial asset to attract more investor, that's why no more investment for future expansion, directly restiction on new employment, new process set up and other cost cutting methods implies.

Supportive Service industry for pharma segment is badly affected due to rescession. The Marketing budget getting shrink and due tho small budget, no one is ready to take the challenging step to cop up with situation. Every one is just waiting for goverment policy or special package, but very few of them start re re-engineering their process or reconstruct their business model. Those who adopt fast change and devise their business statargy according to demand, they are click.

With current global financial meltdown and the threat of a broad recession, the world’s largest pharmaceutical must reconstruct their business model and accelerate their timetables for implementing transformational changes in their organisations.

In the face of unprecedented challenges related to patent expirations, pricing and regulatory pressures, thin late-stage pipelines, exhuted Clinical Trial process, shifting demographics, efficacy issues and globalization, the majority of companies have announced major strategic shifts and choices that have the potential of transforming the business and the business model.

Growth in emerging markets will play a key role in driving product flow, although this strategy does not come without risks, Companies need to consider how they are interacting with third parties across their value chain including distributors, healthcare professionals and policymakers to ensure that the nature of these interactions meet the high standards of compliance required.
The industry leaders are searching for new ways to transform business models to drive innovation and better demonstrate the value of their products. 66% of the Leaders interviewed reported that reinvigorating R&D is the most important strategic initiative currently underway in their organizations, while 40% ranked expansion into new markets and becoming more customer-centric as their primary areas of focus.