The Jawaharlal Nehru Pharma City (JNPC) developed at Parawada near Visakhapatnam in 2,400 acres (9.7 km2) has major pharma companies. Andhra Pradesh Medtech Zone Limited, is the India's first Ultra Modern Medical Equipment Manufacturing & Testing Facility, open to Manufacturers & Innovators.

Visakhapatnam is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Visakhapatnam Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilar, and biologics are some of the major segments of the Visakhapatnam pharma industry. Visakhapatnam has the most number of pharmaceutical manufacturing facilities that are in compliance with the US Food and Drug Administration (USFDA) and has 500 API producers that make for around 8% of the worldwide API market.

Indian pharmaceutical sector supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in the UK. The domestic pharmaceutical industry includes a network of 3,000 drug companies and ~10,500 manufacturing units. Visakhapatnam enjoys an important position in the global pharmaceuticals sector. The city also has a large pool of scientists and engineers with a potential to steer the industry ahead to greater heights. Presently, over 80% of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Visakhapatnam pharmaceutical firms. India is rightfully known as the "pharmacy of the country" due to the low cost and high quality of its medicines.