In year 2016, pharmaceutical sector scored growth, but growth was mainly due to increase in pharma export. But power change in USA, will surely affect export revenue of Indian Pharmaceutical Sector. Price control in USA pharmaceutical Market, pressure of big USA pharmaceutical companies to strong patent policy, change in USFDA approval policy are few reasons that are affecting Indian Pharmaceutical Companies expansion.
India is second largest exporter of generic medicines to USA and main source of generic medicines to developing countries. India is known as World Pharmacy. But last few years and coming few years are going to be tough for Indian Pharmaceutical Companies. Merger and Acquisitions are recent problem for Indian Pharmaceutical Sector. After Government’s approval of 100%FDI in pharmaceutical sector, M&A is at its peak. It will boon or bane, that’s in future’s pocket. But it is the main challenge that are facing by most of the small and macro scale pharmaceutical companies.
Domestic market was become more competitive and difficult; credit goes to implementation of tough government policies and DPCO. Government has introduced new Schedule i.e. Schedule “H1”. It may become milestone for pharmaceutical and healthcare sector that is facing major changes. But implementation and following of Schedule H1 was not done properly. Our diseased healthcare system and unqualified professionals presence in pharmaceutical market make it difficult to proper utilization and implementation of Schedule. Schedule H1 could be hope for patients those are getting dangerous antibiotics without knowing their long term side effects.
Year, 2017 will also bring major changes in healthcare and pharmaceutical sector and how it will affect the marketing strategy of pharmaceutical companies, it is matter to watch. Ethic code will also affect the marketing strategy. One thing is for sure, it will be tough year for pharmaceutical companies.
When DPCO included 348 essential drugs under price control, it affected sale of MNC’s as well as small scale pharmaceutical companies. After that drug price control department widened the list under price control and made it difficult for small scale pharmaceutical companies to survive in tough competition. Most of pharmaceutical companies have their revenue from these products. They don’t have new and innovative products or export like MNC’s to compensate their revenue loss occurred due to price control.
In respect to schedule H1, it does not seem to become effective at this time and does not causing any strategy change. Like schedule H, will schedule ‘H1’ not be proper implement. Time will tell whether it will be successful or not. But pharmaceutical companies have started to prepare them self to handle this type of situations.
Ethic code can also change pharmaceutical companies’ strategy plans (if applied effectively). For some time, it was voluntary and wasn’t effect at high scale. But in future, it can affect surely. If we understand the marketing channel of small pharmaceutical companies, we will find, prescription generated by their franchises or distributors are at relationship bases. So, it is going to cause less harm to them. But it will affect their revenue and profit further.
Numbers of policies are in queue for implementation in Indian Pharmaceutical sector. These will affect small and medium scale manufacturers or marketers more as compare to big cats. All policies are in public interest and surely public should get easy and cheap medicines but interest of small pharmaceutical firms should also be prevented. Otherwise, pharma sector will become monopoly for few giants and will harm more than benefits.
It’s also time for pharmaceutical franchise companies to change their marketing strategy and be innovative and research oriented to compete with MNC’s. Pharmaceutical sector is growing and has big scope for small and big cats. Competition will increase as launching of new pharma companies and their divisions. Competition should be healthy and beneficial for patients too. India is poor country and most of income our people spend at medicines. If they will get best quality medicines at cheap rates, it will increase our nation saving also.
Be positive, Be innovative…
Hope for best future for pharmaceutical companies and our Nation.