sssOptimistic Data Points for Indian Pharmaceutical Sector

  1. Market size is expected to grow to US$ 100 billion by 2025.
  2. Pharma sector revenues are expected to grow by 9% year-on-year through fiscal 2020.
  3. 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.
  4. 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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