Boston, MA -- (SBWIRE) -- 08/12/2013 -- Despite slowing growth in the Indian pharmaceutical market in the first four months of 2013, top domestic firms continued to see strong double-digit growth in the latest quarter, outperforming multinational pharmaceutical firms. We maintain that the Indian government's cost concerns will continue to hinder revenue growth for multinational pharmaceutical firms, benefiting the domestic industry. In foreign markets, Indian pharmaceutical firms will have to be more vigilant with manufacturing practices or risk suffering losses due to drug recalls.

Headline Expenditure Projections

View Full Report Details and Table of Contents

Pharmaceuticals: INR840bn (US$15.7bn) in 2012 to INR926.1bn (US$17.0bn) in 2013; +10.3% in local currency terms and +8.3% in US dollar terms. Forecast slightly downgraded from Q213 due to slower growth in the first four months of 2013.

Healthcare: INR3,811.6bn (US$71.4bn) in 2012 to INR4228.0bn (US$77.7bn) in 2013; +10.9% in local currency terms and 8.9% in US dollar terms. Forecast slightly upgraded due to new data from World Health Organization.

Risk/Reward Rating:

India's Pharmaceutical Risk/Reward Rating (RRR) score for Q313 is 54 out of the maximum 100, under our newly improved RRR system. The country scored above average for some indicators and sub-indicators including overall market expenditure, sector value growth, population growth. Nevertheless, it scored below regional average for most indicators under industry and country risks. Consequently with the moderate score, India is ranked ninth behind Malaysia among the 18 key markets in Asia Pacific.

Key Trends And Developments

In May 2013, India's Department of Pharmaceuticals announced the Price Control Order 2013, which will reduce the prices of 384 essential drugs in the country. While the legislation did not reveal the extent of the price reductions, news sources stated that price cuts could be between 30-60%.

In April 2013, Novartis lost the appeal to have patent protection for Glivec (imatinib) in India, a decision which chimes with our bearish outlook on India's intellectual property regime (and, by extension, the potential of the patented drug sector). The firm has been locked in a legal battle with authorities in India for the past six years, as its patent for Glivec has been rejected repeatedly on the grounds that it was not a new drug. In February 2012, Medecins Sans Frontieres asked the firm to drop the lawsuit. In September 2012, Novartis argued its drug had demonstrated improved efficacy. Other companies that have suffered similar losses in India include Bayer, Roche and Pfizer.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Healthcare research reports at Fast Market Research

You may also be interested in these related reports:

- Nigeria Pharmaceuticals & Healthcare Report Q3 2013
- Croatia Pharmaceuticals & Healthcare Report Q3 2013
- Kuwait Pharmaceuticals & Healthcare Report Q3 2013
- Sweden Pharmaceuticals & Healthcare Report Q3 2013
- Australia Pharmaceuticals & Healthcare Report Q3 2013
- Lebanon Pharmaceuticals & Healthcare Report Q3 2013
- Canada Pharmaceuticals & Healthcare Report Q3 2013
- Oman Pharmaceuticals & Healthcare Report Q3 2013
- Portugal Pharmaceuticals & Healthcare Report Q3 2013
- Mexico Pharmaceuticals & Healthcare Report Q3 2013