Pharma Tips

History of Pharmaceutical Industry in Gujarat

By: Pharma Tips | Views: 7348 | Date: 31-Jul-2011

State of Gujarat emerged as an independent state from the than Greater Bombay state on Ist May, 1960. In the pre-independence era & until about emergence of pharmaceutical industries in Gujarat, India was not self sufficient for medicines and was a net importer of the most of bulk drugs & many formulations. In 1947 the year of Independence India's Pharmaceutical production was to the tune of Rs. 100 million only.

A Detailed Overview
History
State of Gujarat emerged as an independent state from the than Greater Bombay state on Ist May, 1960. In the pre-independence era & until about emergence of pharmaceutical industries in Gujarat, India was not self sufficient for medicines and was a net importer of the most of bulk drugs & many formulations. In 1947 the year of Independence India's Pharmaceutical production was to the tune of Rs. 100 million only.

The synergistic efforts of Central & State Governments & Indian Pharmaceutical Industry resulted in the increase of production of bulk drugs (API) and finished formulations targeting the goal of self reliance in pharmaceutical sector.

Today, India is not only self reliant but is net exporter of pharmaceutical products & about 95% of the API & formulations are produced locally.

Gujarat leads India in pharmaceuticals and enjoys the share between 35% and 46% of the national share in pharmaceutical production over the last two decades. Ahmedabad and Vadodara are leaders in the production of generics while Ankleshwar and Vapi produce much of India's bulk drugs.

The history of the pharmaceutical industry in Gujarat begins in 1907 when Alembic Chemical Works Co Ltd was formed by taking over distilleries in Baroda (Vadodara) with a view to manufacturing alcohol and tinctures primarily for pharmaceutical products.

During the 1940s and 50s, companies like Sarabhai Chemicals, The Gujarat Pharmaceutical and Chemical Works, Atul Products Ltd, Allied and Cadila Laboratories were established in the post WW2 period, referred to globally as the 'therapeutic revolution'. An important landmark in the industry's history was the establishment of LM College of Pharmacy at Ahmedabad in 1947. This college has provided many entrepreneurs, technocrats and drug controllers to the pharmaceutical industry in the state.

The pharmaceutical industry grew rapidly after Gujarat was declared a state with Dr Jivraj Mehta as its first chief minister in 1960. The number of manufacturers in Gujarat grew from 117 in 1962 to more than 900 in 1985 with a major share in the country's pharmaceutical production. The revisions in the Patent Act also benefited the domestic industry in India (see foreword). Another development that impacted the pharmaceutical sector during this period was the establishment of pharmaceutical machinery manufacturing unit, Cadmach in 1967 by Shri Ramanbhai Patel with products catering to various needs of the pharma industry.

During the 1990s and 2000s, Gujarat's companies saw a quantum leap in production and exports with a strong focus on regulated markets as they geared up for globalisation. The large manufacturers successfully entered the capital markets to make the most of the stock market boom to raise resources for increasing production and research facilities. During the last decade, Gujarat's pharmaceutical companies like Sun Pharma, Zydus Cadila, Torrent and Dishman have been expanding their global footprint through acquisitions, mergers and alliances with international companies and setting up subsidiaries and marketing offices overseas. Gujarat's pharma companies have also been increasingly working towards getting their facilities approved by USFDA and other international regulatory bodies to augment their market presence across regulated and semi-regulated markets.

Gujarat's pharmaceutical industry is now ready for sustainable growth, major capacity expansions and an increasingly important role in global consolidation process. In India, there is an increasing spend on healthcare as the emerging economy creates higher incomes, improved health insurance penetration, and lifestyle-related diseases.

On the international horizon, there are abundant opportunities for Gujarat's pharmaceutical companies. The outsourcing of R&D with more and more products going off-patent and declining R&D productivity in many countries offers considerable possibilities for india, a preferred off-shoring destination for many countries, specially for companies involved in contract research, manufacturing and clinical trials to leverage their potential. The growth of the generics sector, in which Gujarat already has a substantial share of India's production and exports, also offers much scope of sustainable growth and production expansion.

Gujarat's pharma majors have also started scaling up their R&D operations to tap the huge potential of therapeutic categories that offer opportunities for those who take the lead in becoming global, innovative research-based pharmaceutical companies.
The Gujarat Scenario
Gujarat accounts for about 40% of pharmaceutical production.

Total 3507 manufacturing units engaged in manufacturing of Allopathic, Ayurvedic, Homeopethic drugs & Cosmetics.

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