How to invest in Indian pharma sector?

Note: the stocks mentioned in example are not for investment recommendation. They are strictly provided to better understand the concept. Blog writer own only one stock mentioned in examples in personal investment account.

Investment in Pharma industry has different types:

1. Branded Generics : Generic drugs that have been given a proprietary market name and may be marketed similarly to how branded drugs are. For example: Telos Crocin is a branded generic pain killer. It goes by the name Crocin rather than its generic name “Paracetamol.” Indian Example: J B Chemical
2. Generic Drugs : They contain the same active ingredients, in the very same strength, as brand-name drugs. These are marketed under the drug’s chemical name. For example: Many brands sell the generic painkiller under the salt name “Paracetamol.” Indian Example: INDOCO REMEDIES LTD
3. Contract Research Organization (CRO): An organization that helps drug manufacturers in the extensive drug discovery process by lightening some of the costly burdens involved with data research, testing, project management and drug trials that are run on a post-approval, pre-clinical and clinical basis. Indian Example: Syngene
4. Contract Manufacturing Organization (CMO): An organization that specializes in manufacturing drug products for pharmaceutical companies rather than engaging in research. Indian example: in this segment INDOCO REMEDIES LTD.
5. Contract Development & Manufacturing Organization (CDMO): An organization that not only handles the outsourced manufacturing of drug substances, but also all of the innovation and development work occurs prior to manufacturing one. Indian Example: Divis
6. Contract Research & Manufacturing Services (CRAMS): An organization that engages in contract research that include custom chemical synthesis and clinical trials along with contract manufacturing. Indian example in this segment Syngene.
7. Active Pharmaceutical Ingredient Manufacturer (API) : An organization that engages in the production of the active ingredients or salts (like paracetamol) required to produce finished formulations by drug companies. Indian example: Aarti Drugs Ltd.