Indian Pharmaceutical Industry

The Indian pharmaceutical/drug industry earlier was limited to only domestic market but now it’s on a forward march and is boosting the value chain. The industry is seen intensifying the research driven operation, focusing on export to embrace its worldwide presence along with expanding the provision of a larger portfolio of value added services and products. Also, improvement in the quality of products constitutes a fair share in bringing this change. Besides, the major role of supportive government policies has set the Indian pharmaceutical industry on a path that is likely to turn into a promising long term progress.

The value of growth rate of the whole industry has suffered a setback in the past due to various factors. This includes stiff competition, extended period of fragmented industry and global perforation of generic products. The domestic market, unlike pharmaceutical market in other countries, has suffered a backward phase due to this. As a result, all pharmaceutical market together adopted a fundamental base of innovation, primary management over the life cycles of their products and value added delivery. All this was done to serve a wide market reach.

Compared to international drug market, Indian pharmaceutical market contributes to 10% consumption of drugs. The market is a budding sector that marks its progress from a broad export base and variegated model of drugs. Along with this there are various factors that accounts for the stellar performance like hygiene awareness, ageing population and growth in income. Quality healthcare facilities, campaigning for a healthier living and government contribution in pharmaceutical research have helped this sector to perform exceptionally well. For example, the Indian government initiative, Pharma Vision 2020, places the pharma sector on the track to emerge as a global leader in manufacturing of pharmaceutical products.

The Rise Of Indian Pharmaceutical Export

India is one of the leading exporters of generic medicines to markets of nations such as Russia, UK, US etc and since past few years, it is also expanding its base to markets such as Brazil, Japan, Canada.

India holds an eminent position in global pharmaceutical industry. With the broadest range of medicines available for export and the largest array of approved pharmaceutical manufacturing facilities, it will soon become the world leader of pharmaceutical export.

Market share

Taking in terms of volume, the Indian pharmaceutical sector accounts for approximately 3.4-3.8 per cent of the global pharmaceutical industry. In terms of volume the share is 10%. Experts say it will grow to US $100 billion by 2025 and the market will rise to US$ 55 billion by 2020. Internal factors also play a prominent part in the rise Indian pharmaceutical industry which further adds to the existing competition on the domestic front.

Investments

According to report released by Department of Industrial Policy and Promotion (DIPP), some of the big investments in Indian pharmaceutical industry are as follows:

As branded drugs which cost around US$ 55 billion will become off-patent during 2017-19, the export of Indian pharmaceutical industry to the US will upsurge.
Due to major deals in pharmaceutical sector, private equity and venture capital(PE-VC) in this sector have grown at 38% per cent between January – June 2017

What statistics say

If statistics are to be believed, Indian pharmaceutical industry contributes to approximately 5 percent of the total consumption of generic medicines globally. Not only this, Indian pharmaceutical industry has a major contribution in export growth since 2008.

By setting up regional offices, subsidiary companies or taken over local companies in other nations, the large players of Indian pharmaceutical industry have successfully bagged many favorable opportunities of growth. Moreover, many have also set up manufacturing plants in developed nations. All these activities have made Indian pharmaceutical industry to have a sound global presence.

As per the reports released by IBEF and Pharmexil, the consumption of Indian pharmaceutical export contributes to around 5 per cent each in top 10 markets of generic drugs, such as Russia, UK, US etc. for the year 2013 and is expected to rise with each passing year. The consumption of Indian pharmaceutical generic drug is also plunging in counties like Germany, Canada, Brazil, France and Japan.

Are specialty products driver

Specialty drugs are the primary driver of prescription drug spending, a trend that is expected to continue in future too. The new forecast of Vizient Drug Price Forecast reveals that although drug costs are expected to rise by 7.35%, specialty pharmacies could be a help in bringing down the spending even further.

According to the report, following are the top 8 specialty drugs categories that are estimated to increase in 2018.

  • Antineoplastic Drugs: These drugs are used to treat patients having cancer.The report suggests that their cost will increase by 4.96% this year.
  • Disease-Modifying Anti-Rheumatic Drugs (DMARDs): Disease-modifying drugs reduce the progression of rheumatoid by acting on the immune system. The reports say that these will be one of the largest drivers of cost and is projected to increase by 11.95%.
  • Immunomodulatory Agents: These drugs are used to treat patients who are suffering from serious conditions such as Crohn’s disease and multiple sclerosis. According to the study, the cost of these drugs is projected to rise by 8.93% in 2018.
  • Hepatitis C Virus (HCV): The cost of HCV antiviral drugs is not projected to increase more than by 2.02%. This is because of more competitors and lower options of cost.
  • Immune Globulin: According to the study, this class of drug is estimated to increase only by 3.94% in 2018.
  • Hematopoietic Drugs: This class of drugs is a crucial component to treat adverse effects caused from chemotherapy and other conditions. The report suggests that costs of hematopoietic drugs will be projected by 7.09% in 2018.
  • Vaccines: The cost of vaccines that are used to prevent human papillomavirus and pneumococcal disease will rise by 5.32% during 2018.
  • Diabetes: With growing cases of diabetes all over the world, access to treatment is pivotal. According to the report the cost of diabetes drugs will rise by 3.62%
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