According to statistics published by the World Health Organisation in 1993, two billion people (approximately 40% of the world population) fall sick every year. The death rate figures are placed at around 51 mn (less than 10%), the causes for mortality ranging from heart diseases, infectious diseases, Cerebro-vascular diseases, T.B., cancer, malaria etc.

The world pharmaceutical industry has shown a tremendous progress during the last three decades. And this progress has been multifaceted as it made its presence felt in all the fields of pharmaceutical industry like process technology, discovery of new drugs, novel drug delivery system, biotechnology etc as a result of which newer, better and safer drugs are available for wide spectrum diseases.

It has been observed that development of the pharmaceutical industry starts with the packaging of imported formulations, production of the drug formulations from imported bulk drugs, production of the bulk drugs involving single step reactions, making complex bulk drugs and finally making raw materials or intermediates at which stage the boundary between pharmaceutical industry and chemical industry becomes blurred. In fact, the extent to which manufacture of bulk drugs from primary raw materials can be undertaken in a country depends mainly on the status of the chemical industry in the country.

Every student in the pharmacy field has a question which area to chose as a career. Production, marketing R&D, quality control is the set of options that students know after the complete their graduation.

But few new areas, which surely have a potential, are biotech industry and pharmaceutical exports. Both of these have a tremendous growth potential and surely pose as an excellent career option for students. A brief insight about how big the pharmaceutical exports market is. The pharma industry contributes to more than Rs 9,000 crore to the country''s annual forex revenue. The main products are bulk drugs, formulation intermediates and surgical products. The export revenue from the Indian pharmaceutical industry has been growing at a rate of 18 - 20% annually for last 5 years.

Since it is necessary to maintain current growth rate there is no option but to make exports to be the industry''s main focus especially in the post GATT era, this is going to be the key for survival.

The Domestic Scenario
Among the developing countries, India has achieved the status of having a sound and reliable bulk drug production industry, which caters to the tune of 46% - 48% to the requirements of formulation production in the country. The industry, consisting of 1,000 bulk drug manufacturers of large, medium and many small units, provides direct employment to two lakh employees and indirectly to another two lakh. Form 1980 to 1998, the bulk drug production increased many-folds.

The total number of licensed pharmaceutical units in the country is over 20,000. The vast production capacity created for bulk drug has led to very intense competition in almost every bulk drug resulting in lower cost. India produces more than 80% in value of the total bulk drug requirements of the country. It is now an established fact that the drug industry in India has made tremendous progress, growing at an average rate of 15% annually.

No country can become entirely self-sufficient in case of pharmaceuticals. Therefore, the imports are expected to continue even with the further growth of the bulk drug industry and an advanced level of technological inputs. An import of a drug would depend on a variety of factors like availability of indigenous products, international price vis-à-vis price of indigenous product, landed cost after paying the import duties etc.

The top players in the Indian market today are GSK, Ranbaxy, Dr. Reddy''s, Cipla, Pfizer, Aurobindo, Nicolas Piramal, Aventis, Wockhardt, etc.

Indian Pharmaceutical Exports
The allopathic system of medicine was introduced in India form the West. Prior to Independence multination pharmaceutical companies were importing all the medicines in their finished form.

Genesis of Exports
In post-Independence era, multination pharmaceutical companies continued their operation in India in view of business potential. While setting up the facilities the multinationals also brought along with them international manufacturing practices and ethics. A number of Indian companies also grow with their own know-how formulations. There was considerable improvement in the discovery of new formulation a part from an increasing existing production.

In 50s the industry was at a nascent stage. The industry made humble beginning in terms of exports in early 60s.

The table below depicts the exports of pharmaceuticals from India.

India''s Exports
Year Rs. Crore

1990-91 784.80

1991-92 1,281.10

1992-93 1,375.00

1993-94 1,841.00

1994-95 2,265.00

1995-96 3,177.00

1996-97 4,090.00

1997-98 4,978.00

1998-99 5,959.00

Source: OPPO Annual Report, 2000

It is anticipated that exports of bulk drugs and formulations, particularly those that are off patent drugs will get boost in the years to come.

The reasons are:
1. Better margins due to lower production cost.

2. No excise duty, sales tax etc.

3. Tax free profits.

4. Cheaper bank finance

5. Increased market base.

6. No price control on exports.

7. High tariff protection.

8. Creation of International regulation

The table below depicts the top ten export destinations of Indian exports:
Top 10 Destinations of Indian Exports

Rank Country
1 USA

2 GERMANY

3 RUSSIA

4 HONGKONG

5 UK

6 NETHERLANDS

7 ITALY

8 NIGERIA

9 SINGAPORE

10 SPAIN

Source: Chemexcil Report, 1997-98

The top Indian pharmaceutical exporters are Ranbaxy, Dr. Reddy''s, Cipla, Workchardt, Aurobindo, Orchid, Lupin etc.

The Global Scenario
According to a survey conducted by IMS (Chemical Weekly, September 30, 1997), the global drug market sales in 1997 were estimated to be US$ 297 billion and is expected to grow at an average rate of 6.2% until 2005 when the market will swell to US$ 450 billion. The table below enlists six countries and their imports and exports of pharmaceuticals during the year 1997.

Pharmaceutical Trade Statistics 1997
(US $ Bn)

Country Imports Exports
Germany 7.12 10.68

Switzerland 3.87 7.92

USA 5.62 7.64

UK 4.10 7.30

France 5.18 6.95

Belgium 3.12 5.11

While on the global scenario, the top World Pharma companies are GSK, Pfizer, Merck, Roche, Aventis, Schering-Plough, Eli Lilly, Novartis.

Also mentioned are the major drugs traded in the world and the destinations to which they are exported.

Major Drugs And Their Destinations From India

Name of the Drug Destination
Menthol USA, W.Europe, Asia and Latin America
Amoxycillin W.Europe, Asia and Canada
Sulphamethoxazole USA, Europe, Asia, Poland and Mexico
Ciprofloxacin W.Europe, Asia and Mexico
Ethambutol W.Europe, and Asia
Trimethoprim W.Europe and Asia

Presently, both production and sales are concentrated in the US, Europe and Japan and they account for 80% of the global production and sales. China''s share in the world market is projected to increase from 5.5% in 1997 to 7.1% by 2001. India''s population is about 17% of the global population but has only a 1.1% share in world production of drugs.