Although India ranks second for having the largest population on a global scale, its government continues to provide healthcare support to the people. Actually, the national government of India is quite focused on keeping the cost of medications affordable to the Indian population. The government‚Äôs strong support has given aspiring Indian entrepreneurs the confidence to invest in the local pharma industry.
Factors Driving the Affordability of Pharmaceuticals in India
According to global consulting firm McKinsey & Company, the costs of medications in India are notably low. This is so due to the government‚Äôs continuously growing investments in public healthcare, which has been on a steady rise at 18% annually. Moreover, factors such as increased insurance coverage, sustained income growth, low-cost labor, cheap utilities, affordable equipment, and competitive land rates, all contribute to keeping the costs of medications low.
Yet the affordable costs of therapeutic drugs in the country are made possible by India‚Äôs improved medical infrastructures and efficient diagnosis and treatment of chronic diseases. This enabled the drug manufacturers to improve their ability to constantly manufacture and launch new groundbreaking patented products in fresh markets across India.
Based on a 2015 report by Deloitte, India‚Äôs pharmaceutical industry made significant investments. Such investments saw the upgrade of manufacturing plants in ways that meet international standards (ISO, generally modeled after the standards set by the U.S. Food and Drug Administration.
Many countries in Asia regard India‚Äôs pharma industry as a guiding light in the global pharmaceutical business. The uniquely superb blend of low production costs, efficient research and development, and skilled workforces have made India a world-leading producer of generic medicines. As a matter of fact, the country‚Äôs gigantic pharma market aims to attain world dominance in the field of medications by serving as the main manufacturer of outsourced generic medicines.
About India‚Äôs Unique PCD Program
In India, an entrepreneur looking for a low-cost pharmaceutical business opportunity can become a PCD operator. As such, he enjoys the exclusive right to sell a specific line of medicinal products in a region. The long and short of it is that the PCD entrepreneur maintains a monopoly in the sale of generic products in a relatively small market.
PCD in India‚Äôs pharmaceutical space stands for Propaganda Cum Distribution, which refers to the marketing and distribution rights of a franchise business operator. A PCD can either be a PCD Pharma or a PCD Franchise. The main difference between the two is the size or scale of the exclusivity or the monopoly rights given to a PCD entrepreneur.
A PCD Pharma requires lower capital as franchise investment over a small unit, whilst exercising a monopoly over a smaller area. A PCD Franchise on the other hand is the exact opposite, requiring a larger capital investment. The purpose of this is to cover a broader range of products in a larger area in which to exercise the sole right to sell generic pharmaceutical products.
Now here‚Äôs the thing, the drug manufacturer is actually a third party to a PCD Pharma or PCD Franchise deal. Just like any form of investment, an investment-focused company curates the pharma companies offering the best PCD program.
One company we can cite as an example is Vivaceutical, as it boasts of a WHO and GMP-compliant portfolio of potential PCD investments. Moreover, this company gives assurance that the wide range of exclusive pharma products such as tablets, capsules, syrup, injectables, creams, and other pharma products have passed rigorous quality testing as evidenced by certifications issued by various regulatory bodies like India‚Äôs Drugs Controller General of India (DGCI), Food and Drug Administration (FDA) and Foods Safety and Standards Authority of India (FSSAI.)