Strength

Self-reliance displayed by the production of 70% of bulk drugs and almost the entire
requirement of formulations within the country
Low cost of production
Low R&D costs
Innovative Scientific manpower
Strength of National Laboratories
Increasing balance of trade in Pharma sector
The difference in value between a country's imports and exports
Huge market for lifestyle drugs owing to growth of middle class in the country
Lifestyle drug is medications which treat nonlife-threatening and non-painful
conditions such as baldness, obesity or wrinkles

Weakness
The Indian pharma companies are marred by the price regulation.
National Pharmaceutical Pricing Authority - NPPA, Govt of India
On 10 July, the National Pharmaceutical Pricing Authority (NPPA) issued an order bringing
certain cardiovascular and diabetes drugs under price control, citing extraordinary
circumstances under paragraph 19 of the Drug Price Control Order, 2013. This law allows the
government to control the price of any drug, if it is in the public interest.

Indian pharma sector has been marred by lack of product patent.
Indian pharma market is one of the least penetrated in the world.
Indian pharma industry is highly fragmented due to very low barriers to entry.
Stringent Animal rights to conduct essential experiments.
Absence of a Drug Regulatory System.

Opportunity
Competent Workforce
Cost-effective Chemical Synthesis
Legal & Financial Framework
Consolidation
Low Priced Products
Quality Assurance
Dominance in the Market
Labor Force
The Indian Generics Market
Smaller Bio-tech Firms
Ageing & Obese Population

Threats
Possibility of Change of the Patent Act.
Threats from other low cost countries like China and Israel .
Threat of the dumping of bulk drugs and formulations by neighbouring countries.
Introduction of VAT.
Delay in new product approval from the government.

Recommendation

Improving Forecasting Accuracy
Reducing Inventory levels
Improving Customer Servicing levels and trust building
Infrastructure for cold chain management is still in developing stage.
Degree of digital technologies in the channel distribution of the pharmaceutical
industry in India

Increasing Information Availability of all SKUs
Development of new product development capability.
All ways will create a triangular linkage between the customers, the company
and the competitors.
Need to develop effective performance framework for pharmaceutical supply chain
considering emergency situation
Highly fragmented nature of distribution network