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.
|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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