The Indian pharmaceuticals market is the next biggest concerning quantity and thirteenth largest concerning value, according to a report by Equity Master.
India is the biggest provider of generic medications internationally using all the Indian generics accounting for 20 percent of global exports concerning volume. Naturally, consolidation is now a significant feature of the Indian pharmaceutical marketplace as the business is extremely fragmented.
India enjoys a significant position in the worldwide pharmaceuticals sector. The nation also has a huge pool of engineers and scientists having the capability to steer the business forward to a much greater degree.
Currently over 80 percent of these antiretroviral drugs used worldwide to fight AIDS Acquired Immuno Deficiency Syndrome are provided by Indian pharmaceutical companies.
Growing per capita sales of pharmaceuticals in India offers ample opportunities for players in this market Per capita sales of pharmaceuticals expanded at a CAGR of The Indian pharma industry, which is expected to grow over 15 per cent per annum between and , will outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent between the same period!.
Branded generics dominate the pharmaceuticals market, constituting nearly 80 per cent of the market share in terms of revenues.
In Depth - Indian Medicine Industry
The sector is expected to generate 58, additional job opportunities by the year The Union Cabinet has given its nod for the amendment of the existing Foreign Direct Investment FDI policy in the pharmaceutical sector in order to allow FDI up to per cent under the automatic route for manufacturing of medical devices subject to certain conditions.
Aurobindo Pharma Ltd, has acquired four biosimilar products from Swiss firm TL Biopharmaceutical AG, which will require TL Biopharmaceutical to supply all the developmental data for four molecules, which will be developed, commercialised and marketed by Aurobindo Pharma.
Sun Pharmaceuticals Industries Limited plans to acquire The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies.
In addition, the thrust on rural health programme, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies. It will lead to tax-neutral inter-state transactions between two dealers, thereby reducing the dependency on multiple states and increasing the focus on regional hubs.
It is expected to result in an efficient supply chain management, which is expected to reduce its cost considerably.
The cost of technology and investment is expected to reduce on account of tax credit which can be availed now on the duties levied on import of costly machinery and equipment.
Approval time for new facilities has been reduced to boost investments.
The government introduced mechanisms such as the Drug Price Control Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability and availability of medicines. Mr Ananth Kumar, Union Minister of Chemicals and Petrochemicals, has announced setting up of chemical hubs across the country, early environment clearances in existing clusters, adequate infrastructure, and establishment of a Central Institute of Chemical Engineering and Technology.
Road Ahead. Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.