careerLet us understand the current scenario & future projections for Indian Pharma Industry before we make a career choice!

  1. Market size is expected to grow to US$ 55 billion by 2020 with a growth rate of 22.4% & further US$ 100 billion by 2025 with a growth rate of 30% from the year 2020 to 2025.
  2.  If product portfolio is aligned to Chronic disease therapies  like cardiovascular, anti-diabetes, anti-depressants and anti-cancer, much better growth in domestic sales of Pharma companies can be expected.
  3. Indian Government focus on reducing the costs and bringing down healthcare expenses by speedy approvals of generics, biosimilars & insurance seems good for all. Focus on Rural health programmes, lifesaving drugs and preventive vaccines also provide an optimistic – pharma sector growth projection.
  4. Medicine spending in India is expected to increase at 9 to 12% CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanization & raising healthcare insurance.
  5. As an Export item Pharma is of greater importance, as it is 5th largest export item for India. Demand of Low-cost generics is further increasing the demand of Indian Drugs in the international Market.
  6. As per 2017-18 Report by Ministry of Commerce & Industry, India’s Top-5 Potential Commodities for Middle East Countries consist of: 1. Petroleum Products 2. Jems and Jewellery items 3. Engineering Products 4. Pharmaceutical Products 5. Rice.

Pharma future

 

Pharma Industry, Snapshot 2018 & Future Projections

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.

More positive 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

All these current & future data projections are enough to appreciate the fact that Indian Pharma Industry is poised to grow & It will drive growth & development opportunities for professionals who choose Pharma Sector as Career.

 

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