Indian Pharmaceutical Firms Lag Behind Global Counterparts
Indian pharmaceutical companies are not performing as well as global firms in key areas like research and development (R&D) intensity, the number of PhD employees, and the number of patents and publications per billion USD of revenue. This information comes from a report by the Foundation for Advancing Science and Technology (FAST India) and IIFL Securities.
Key Findings
The report highlights that global firms produce 8.4 times more publications and 5.6 times more patents per billion USD of revenue compared to Indian firms. In terms of R&D intensity, global firms are three times more intense than Indian firms.
Performance of Indian Firms
Despite these challenges, some Indian companies are excelling in certain areas. Dr. Reddy’s Laboratories leads in R&D intensity and the proportion of PhD employees among Indian firms. Biocon ranks first for publications per billion USD revenue among Indian firms, while Sun Pharmaceuticals leads in patents by revenue.
Indian Pharmaceutical Sector’s Contribution
The Indian pharmaceutical sector contributes 1.72% to the country’s GDP, with around 3,000 companies and over 10,563 industrial units. Policy reforms have helped India become a global leader in drug manufacturing, making it the third-largest drug producer by volume and a major supplier of generic drugs worldwide.
In the 2022 financial year, Indian pharmaceutical exports reached USD 23.5 billion, including bulk drugs, intermediates, formulations, and biologicals.
Doubts Revealed
R&D -: R&D stands for Research and Development. It is the process where companies work on creating new products or improving existing ones. In the pharmaceutical industry, R&D is crucial for developing new medicines.
PhD employee proportion -: PhD employee proportion refers to the percentage of employees in a company who have a Doctor of Philosophy degree. In the pharmaceutical industry, having more PhD employees can mean more advanced research and innovation.
Patents -: Patents are legal rights given to inventors to protect their inventions from being made, used, or sold by others without permission. In pharmaceuticals, patents protect new drugs and technologies.
Publications -: Publications in this context refer to scientific papers or articles that share research findings. They are important for sharing knowledge and advancements in the pharmaceutical field.
FAST India -: FAST India is an organization that focuses on research and analysis in various sectors, including pharmaceuticals. They provide insights and reports on industry trends.
IIFL Securities -: IIFL Securities is a financial services company in India. They provide investment advice and research reports on different industries, including pharmaceuticals.
Dr. Reddy’s -: Dr. Reddy’s is a well-known Indian pharmaceutical company. They produce a wide range of medicines and are recognized for their research in specific areas.
Biocon -: Biocon is an Indian biopharmaceutical company. They focus on developing affordable medicines and are known for their work in biotechnology.
Sun Pharmaceuticals -: Sun Pharmaceuticals is one of India’s largest pharmaceutical companies. They produce a variety of medicines and have a strong presence in the global market.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country. The pharmaceutical sector’s contribution to GDP shows its importance to the economy.
USD 23.5 billion -: USD 23.5 billion refers to the value of pharmaceutical products that India exported in 2022. It shows how much medicine India sells to other countries.