The Indian pharmaceutical market is expected to grow to US$ 55 billion by 2020 from the 2009 levels of US$ 12.6 billion, as per a McKinsey & Company report titled “ India Pharma 2020: Propelling access and acceptance realising true potential”. The industry further holds potential to reach US$ 70 billion, at a CAGR of 17 per cent. India’s pharmaceutical industry constitutes of about 8 per cent of the world’s pharmaceutical production. Over the last couple of years, Indian pharma companies have been increasingly targeted by multinationals for both collaborative agreements and acquisition, as per a Espicom report titled, “The Pharmaceutical Market: India Opportunities and Challenges”. The US$ 12 billion valued pharmaceutical industry in India is expected to grow at an annual compound annual growth rate (CAGR) of 10-11 per cent. The industry spends around 18 per cent of its revenue on research and development (R&D).
India’s exports of drugs, pharmaceutical & fine chemicals stood at US$ 9.26 billion during April 2010–Feb 2011, up 16.15 per cent as compared to US$ 7.97 billion in the same period during the previous year. India’s exports has recorded a growth rate of over 20.07 per cent, during the period of the two financial years in the study, the exports to rest of the world has grown by 9 per cent, according to DGCIS data from Pharmexcil Research. India and Russia signed a memorandum of understanding (MoU) last year. Another will be signed in December 2011, as per Mr Devendra Chaudhry, Joint Secretary, Department of Pharmaceuticals. Indian pharma companies export drugs worth US$ 600 million to Russia every year. Pharma sector accounts for the largest Indian export to Russia. The drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 4.89 billion between April 2000 and August 2011, according to the latest data published by Department of Industrial Policy and Promotion (DIPP). Indian pharmaceutical market is predicted to grow to US$ 55 billion by 2020 from US$ 12.6 billion in 2009, according to a report by McKinsey. On back of a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights, the Indian pharma industry is estimated to grow manifold. Generics will continue to dominate the market while patent-protected products are likely to constitute 10 per cent of the pie till 2015, according to McKinsey report ‘India Pharma 2015 - Unlocking the potential of Indian Pharmaceuticals market’. Moreover, as per a press release by research firm RNCOS, the report titled ‘Booming Generics Drug Market in India'. The report further projects the Indian generic drug market to grow at a CAGR of around 17 per cent between 2010-11 and 2012-13. India tops the world in exporting generic medicines worth US$ 11 billion. Currently, the Indian pharmaceutical industry is one of the world's largest and most developed, according to Mr Srikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers. The Pharma market world over will experience substantial changes. Asia-Pacific region is emerging as the fastest growing pharmaceutical market in a recent years. Today, Indian Pharma business is emerging as a global powerhouse with rich pipeline of various products, is becoming 3rd Pharma super power in the international level, despite the current economic slowdown pharmaceutical R&D is increasing mode in India. Industry Insights, reports that the Indian pharmaceutical market, is growing at almost 10 to14 % and valued at Rs.1,00,000 crore currently, it could see the almost double figure in next 5 years. Today Indian Pharma segment will stands at the cusp of a world major out put; exports and contract manufacturing business are growing at 10 % Per anum, and it will contribute to achieve the promised growth in coming years. The Indian pharmaceutical companies export their products (Drug intermediates, APIs, Finished Dosage Formulations, Bio Pharmaceuticals) to more than 200 countries around the world (including highly regulated markets of USA, West Europe, Japan and Australia). 40% of the world’s bulk drug requirement is met by India. As multiple global segments are available for Indian Pharma companies: Such as Pharma manufacturing, drug discovery, research, clinical outsourcing, marketing, and etc. With the increased presence of multinational companies, the Indian pharmaceutical sector is flourishing with multiple opportunities, even the Indian companies are revamping their R&D facilities to comply with World Trade Organization’s Trade Related Aspects of Intellectual Property Rights (WTO-TRIPS) agreement and recognized product patents with the amendment of the Indian Patent Act in January 2005.
Steve Hamper
Editorial Director - Pharmanewsprwire
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