1.  Pharma industry does not depend on economic cycles, people can afford the medicines even in economic down cycle.

2. Price control on pharma products are least in US, so almost every company try to sell in US market

3. Many pharma companies practiced anti competitive practices, hence the margins in pharma industry is huge. Now government took charge and put cap on several pharma products.

4. In pharma bigger companies become even bigger due to economies of scale

5. India has a edge of producing high quality medicines at much lower cost

6. 50% of the Indian pharma sector is exports, hence even rupee depreciation can give profits.

7. Among the different types in pharma sector, CDMO has high margins

8. New form of medicines are biologics. Raw material for biologics comes from living animals (not chemicals)

9. Due to present life style, cancer, diabetes and obesity became huge problem that medicine sales are growing double digits.

10. API (Active Pharmaceutical Ingredient ) is core medicines that we get from medical shops. This market is highly competitive with low margins.

11. As the size of the insurance penetration grows, pharma industry is bound to grow.

12. Each drug takes more than 10 years to come to market, each company should have a portfolio of drugs in pipeline at different stages.

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