Move back US, its India all the way.
In 1970s, Indian pharmaceutical market was almost non-existent. But today, India has carved a niche for itself in the pharmaceutical domain. In fact, it has a grown in to a big mart for the
Pharmaceutical Industry. In the wider world, India pharmaceutical industry ranks fourth in terms of volume and thirteenth in terms of value. Be it formulations, bulk drugs, generics, Novel Drug Delivery Systems, New Chemical Entities, or Biotechnology etc, Indian companies are dominating the marketplace that was traditionally manned by MNCs.
Interestingly, its the judicious mix of low R&D costs and highly-skilled resource pool have orchestrated Indias Pharmaceutical growth story. Moreover, the Indian Pharmaceutical industry seems to have prospered on the reverse engineering skills, by making optimum utilization of lack of process patent in the country. This has helped India offer products at some of the lowest prices. However, quality was never an issue, considering India has largest number of manufacturing plants approved by US FDA, second only to US.
Just a few says back there were reports in newspapers that dearth of funds have forced some dozen UK based small and medium seized life science companies and research institutes to explore low-cost collaborative opportunities in India. This report in itself testifies Indias growing potential as a Pharmaceutical giant
Made-in-India drugs popular overseas
Drugs made-in-India are exported to US, Europe, Central and Eastern Europe, Latin America and Africa. In 2007-08, India exported drugs worth US$ 7.2 billion to these countries.
According to RNCOS, a market research firm, Indian pharmaceutical exports are expected grow at a CAGR of 18.5 per cent. Also, patent expirations and noteworthy growth in the global generics market will help India catapult into the top league.
Indian Pharmaceuticals exports registered a significant growth rate of 30.7 percent in April-October 2008 vis--vis the corresponding period last year.
Indian Pharmaceutical Growth Graph Peeking
As per the study carried out by consulting firm IMS, Indian pharmaceutical market appears bullish. The market is estimated to grow at the rate of about 12-13 per cent in 2009.
Indias drug retail industry clocked an impressive growth of 13.3 percent during February 2009.
Domestic formulations market is estimated to record US$ 21.5 billion by 2015.
As far as Indian vaccine market is concerned, in 2007-08 it registered a growth of US$665 million, and is even growing at the rate of 20 percent. Exports market share is over US$ 360 million, while the domestic market share is US$ 300 million.
Pharmaceutical Retail on a higher growth plane
India reportedly has 5.5 million chemists and druggists, and the pharmaceutical retail market accounts just 2 per cent of the industry, but it is posting a magnificent year-on-year growth rate of 30-40 per cent. The pharmaceutical retail market is likely to cross US$ 10 billion mark in 2010 and will be worth US$ 12 billion US$13 billion by 2012.
Made-in-India Generics making in roads in global markets
Once considered as a dirty business by the outer world, now generics are considered as a saving grace by the Big Pharma companies. However, Indian companies are experts in this arena.
Ranbaxy, Sun Pharma, Cipla, Wockhardt are few of the many Indian players that have emerged as top suppliers of cheap generics to the world.
Big Pharma companies in the outer world ignored generics, beacause its manufacturing required different chemistry skill sets and the biggest drawback being the margins were thin. On the other hand, patented drugs enjoyed a monopoly and earned multi-million dollar sales.
As per the report by IMS Health, Indian generic market will grow more than US$ 70 billion in the coming years, with more patented drugs going off patent. Indian generic manufacturers are gearing up to provide generic versions of these drugs.
India a big Mart and huge market for Research & Development
Indian government is planning to invest around 422.96 million for setting up six National Institutes of Pharmaceutical Education and research. This government initiative will help boost R&D in the pharmaceutical sector.
To improvise its R&D operations, biotechnology major, Biocon will be investing US$20.11 million in the next financial year.
Government Initiatives to boost Indias Pharmaceutical prospects on the global arena
Government initiatives to step up growth in the pharmaceutical sector include:
Tax-breaks.
Development of new drug molecules, clinical research etc.
Two new schemes introducedNew Millennium Indian Technology Leadership Initiative and the Drugs and Pharmaceuticals Research Programme.
Domestic and Foreign Investment
* Domestic investment in the pharmaceutical sector is estimated at US$ 6.31 billion. * FDI worth US$ 1.43 billion was invested from April 2000 to December 2008.
Future Ahead
The Indian pharmaceutical industry will be witnessing significant growth in the near future as spending on healthcare is spiraling like never before. Consumer spending on healthcare is estimated to increase from 7 per cent in 2007 to 13 per cent by 2015.
