The Indian Pharma Industry under the Product Patent Regime

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTR169 For delivery in electronic format: Rs. 700;
For delivery through courier (within India): Rs. 700 + Rs. 25 for Shipping & Handling Charges


Case Length : 26 Pages
Period : 1990-2005
Organization : -
Pub Date : 2005
Teaching Note : Not Available
Countries : India
Industry : Pharmaceutical


The Indian pharma industry has been consistently charting high growth rate in the 1990s and 2000s. The industry which was controlled by the government in the 1970s and 1980s to ensure that medicines were sold at affordable prices, has slowly been liberalised in the 1990s and 2000s. The note explains India's evolution as a pharma supplier to the world, and how India moved into a product patent regime from a process patent regime, in order to comply with its international obligations as part of the WTO agreement on TRIPS. The note explains the role played by the government in facilitating the growth of the industry, the regulatory regime that existed in India prior to liberalisation, the export orientation of the industry, the major pharma players in the country, and issues affecting the industry etc.

The note ends with an optimistic outlook stating that the Indian pharma industry will soon be an R&D hub for multinationals in custom research and clinical trials and the industry has the potential to tap the growing generics market in Europe and the US.


Effect of multilateral trade agreements on an industry

Moving up the value chain

Role of government in facilitating the growth of an industry


  Page No.
Introduction 1
Growth and Nature of the Industry 2
Role of Government 4
Research and Development 7
Issues Affecting the Industry 7
Major Pharma Players in India 8
Outlook 11
Exhibits 12


Indian Pharma Industry, Product patent, Process Patent, DPCO, FERA, Small Scale Industry, TRIPS, The Indian Patent Act, World Trade Organization, Exclusive Marketing Rights (EMR), Union Budget 2005-06, Wockhardt Ltd., Value Added Tax (VAT), Ranbaxy Laboratories Ltd., Dr. Reddy's Laboratories Limited

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