Indian Pharma Industry Snapshot 2018
Optimistic Data Points for Indian Pharmaceutical Sector
- Market size is expected to grow to US$ 100 billion by 2025.
- Pharma sector revenues are expected to grow by 9% year-on-year through fiscal 2020.
- If product portfolio is aligned to development & research in chronic diseases therapies like cardiovascular, anti-diabetes, anti-depressants and anti-cancers which are on the rise, then much faster growth in domestic sales is expected for such pharma companies.
- Indian Government focus on reducing the costs and bringing down healthcare expenses by speedy approvals of generics, biosimilars & insurance for all is a positive development. Focus on Rural health programmes, life-saving drugs and preventive vaccines are good signs for pharma and healthcare sector.
| Remarks | ||
| Growth Rate | The industry’s revenues are estimated to have grown by 7.4% in Fiscal Year 17 | CAGR of 5.64%, during FY11-16 |
| Revenue Growth projection by the year 2020 | 9% Year-on-year | |
| Market Size | 3.1% – 3.6% (in Value) 10% (in Volume) |
Global pharmaceutical industry |
| Growth Expectations | US$55 billion by 2020 US$100 billion by 2025 |
By 2020, Indian Pharma sector will emerge as the 6th largest pharmaceutical market globally by absolute size. |
| Pharmaceutical exports | -US$ 16.8 billion (2016-17) -US$ 10.76 billion (April 2017 – January 2018). |
– Expected to grow by 30% over the next three years to reach US$ 20 billion by 2020 *Projection by – PHARMEXCIL |
| Generic Drugs Contribution Globally |
20% of Global Exports in Volume | |
| HIV drugs | 80% of total HIV/AIDS drugs used globally is supplied by Indian Pharma Industry | The UN-backed Medicines Patent Pool has signed 6 sub-licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic anti-AIDS medicine Tenofovir Alafenamide (TAF) for 112 developing countries |
| Abbreviated New Drug Application (ANDA) | 304 approvals from USFDA in 2017 | |
| US generics market share | 30% (by volume) 10% (by value) |
Total US Generic market size US$ 70-80 billion |
| India’s biotechnology industry | Growth of 30% a year | It’s expected to reach US$ 100 billion by 2025 |
| Biopharma (vaccines, therapeutics and diagnostics) | US$ 1.89 billion | is the largest sub-sector contributing nearly 62 per cent of the total revenues |
| Investments | US$ 15.59 billion FDI inflows (April 2000 and December 2017) * As per data, Department of Industrial Policy and Promotion (DIPP) |
– Union Cabinet has agreed to the amendment of the existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions |
| Recent developments in Investments for Pharma Sector | -Chrys Capital is planning to buy a 10 per cent stake in Mankind Pharma for US$ 350 million (as of March 2018). – Exports of Indian pharmaceutical industry to the US will get a boost due to off-patent. -Major Deals (Merger-Acquisitions) are happening |
– Branded drugs worth US$ 55 billion will become off-patent during 2017-2019 (expected) – Pharmaceutical sector have grown at 38% year-on-year between January-June 2017, due to major deals in this sector. |
| Government Initiatives | -Drug Controller General of India (DCGI) announced its plans to start a single-window facility to provide consents, approvals and other information. – Pharma Vision 2020 |
– Make in India Initiative & Capacity Building focused approach – Aimed at making India a global leader in end-to-end drug manufacture. – Approval time for new facilities has been reduced to boost investments. |
| Government Initiatives | – Planning to set up an electronic platform to regulate online pharmacies under a new policy – Drug Price Control Order and the National Pharmaceutical Pricing Authority |
– To stop any misuse due to easy availability – To deal with the issue of affordability and availability of medicines |
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