With the advent of the new Intellectual Property Rights (IPR) regime in 2005, the Indian pharmaceuticals industry has entered a new era. In the recent past, the Indian pharmaceutical industry has shown tremendous progress in terms of infrastructure development, creation of technology base, and diversification of product range, and now has the capability to manufacture bulk drugs belonging to all major therapeutic groups.

The Indian pharmaceutical market size is estimated to be over Rs. 475 billion today, and the industry is growing at an average annual growth rate of 13.7%. Indian pharmaceutical exports in 2006-07 are expected to cross Rs.270 billion. According to a recent McKinsey report, the Indian pharmaceuticals industry has the potential to double in size by 2010.

However, the industry is highly fragmented, with more than 24,000 manufacturing units. It also has a number of pharmaceutical manufacturing units under the control of the central and state governments. In the private sector, Ranbaxy, Cipla, and Dr. Reddy's Laboratories are the major players. MNCs have maintained a low-key presence in the Indian market due to the absence of product patents and price controls.

The pharmaceutical industry in India has the potential to achieve even higher growth levels. However, this is possible only if key enabling factors such as a world-class patent regime and an environment that fosters innovation and entrepreneurship are put in place. With over US$ 50 billion worth of drugs going off patent in the next four years, there is a huge global opportunity for India. Contract manufacturing is expected to touch Rs. 40 billion, whereas exports of pharmaceuticals, dominated by bulk drugs, would continue to grow at 17-18%.

Managers in this sector would have to be knowledgeable of Intellectual Property Rights. Apart from having a thorough understanding of different functional areas, they would have to be aware of global best practices and implement them in their organizations. With a growing OTC market, they would have to be familiar with branding and brand development. They also would have to develop strategies concerning pricing, market segmentation, new product development, and distribution.

The Master's in Pharma Business Management introduces students to the opportunities and challenges in this dynamic sector.