The Indian pharmaceutical industry is renowned for its competitiveness in both cost efficiency and research and development. According to the Economic Survey 2022-23, the industry has maintained its growth momentum even after the pandemic, and it is projected that the domestic pharmaceutical market will reach USD 130 billion by 2030. In FY21, the country’s pharmaceutical exports grew by a healthy 24%, driven by the demand for critical drugs and supplies due to COVID-19, which were sent to over 150 countries. However, the sector faces challenges such as shortages of key medications, quality and regulatory issues, and fluctuating drug pricing due to a lack of policy stability.
Against this backdrop, the Bombay Chamber, under the auspices of the BFSI Committee, organised the 7th Pharma Workshop in association with Title Sponsor, Howden Insurance, Co-sponsor, Go Digit and Knowledge Partner, PwC. The workshop’s theme was Managing Risks and Liabilities in Pharma. Mr Praveen Vashisht, Chairman, Howden India, Howden Insurance Brokers India, welcomed the audience and set the tone for the workshop by discussing three risks affecting the Pharma sector: competitive environment rationale, operational and financial risks, and reputational risks. Mr Vashisht also discussed how Covid-19 exposed weaknesses in the Insurance and Pharma Industries and the impact of reduced demand, cyber threats, and supply chain disruption on these industries. He further elaborated on the three different risk management areas for organisations: measuring the risk, managing the risk, and monitoring the risk.
In his keynote address, Mr Srinivas Lanka, Mentor, ElixGlobal, highlighted the importance of each and every risk in the pharma industry. He also discussed how earlier, there used to be 70% API (Active Pharmaceutical Ingredients) imports from China, but the scenario has changed now. In terms of value, currently there is only $3bn API Imports from China compared to $23bn earlier. Mr Lanka spoke about the numerous risks in the pharma industry due to supply chain disruptions, resulting in businessmen losing opportunities and hampering the industry’s growth. He stated that this is now the era of exporting Indian pharmaceutical products in international markets, and every country is facing issues due to forums and their correspondences. He further noted that it is becoming increasingly difficult to develop a large molecule due to supply chain interruptions for manufacturers.