The challenging environment in the pharmaceutical industry has compelled the domestic players to explore different avenues for survival. The latest trend to hit the pharma industry is that of targeting niche therapeutic segments.

Drugs are a necessity for every human being. Be it a commoner or a rich man, either for treating chronic ailments or for supplementary purpose, the need for drugs is always there. According to estimates, an average of 11% of the total household income is spent on healthcare in India. The global pharmaceutical and biotechnology market was valued at $447.5 bn in 2004, growing at approximately 9%. There are many pharmaceutical companies in the market that are catering to the needs of the customers. The market is highly fragmented comprising of both domestic and international companies. Needless to say, the level of competition among them and the desire to carve a niche for them in the global arena is extremely intense. Companies have to continuously change their strategies in order to keep up with the frenetic pace of the market and to cope with the changing needs of the customer.

The average growth rate of the industry in the last 5 years was around 10%. One of the major reasons for this is the launch of new molecules in the lifestyle segments such as diabetes, cardiovascular, etc. While at one point of time, the Indian pharmaceutical industry was dominated by the MNCs, their market share has been steadily declining from 75% in 1971 to the current 30%. The estimated Rs. 20,000 cr domestic pharma segment has been depending on its clinical research and manufacturing strengths to face the stiff competition prevalent in the industry. India has been attracting foreign tourists in great numbers for their medical treatment.

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