Navi Mumbai, Maharashtra -- (SBWIRE) -- 12/25/2011 -- The centre of gravity for global pharma industry is shifting eastwards as emerging economies are spending more money on healthcare as their citizens are living longer and growing wealthier. Simultaneously, cash strapped western governments are curbing healthcare related expenses and limiting outflow to state-funded medical programs. Moreover, the global pharmaceutical industry is witnessing a disproportionate scenario in recent years where there is large number of patent expiries coupled with lower introduction of innovative drugs. This is leading to global pharma companies strategically outsourcing their manufacturing and research jobs to countries like India while increasing their focus on introducing low cost generic drugs. http://www.bharatbook.com/detail.asp?id=220376&rt=Indian-Pharmaceutical-Industry1.html
Outsourcing activities can be in multiple segments right from the drug discovery till manufacturing of the final products. India has highest number of USFDA compliant manufacturing units (outside the US) to produce huge quantities of bulk drugs and formulation products complying stringent quality norms for global pharma companies. Several large global pharma companies have ventured into India through in-licensing route thereby taking advantage of local distribution network of Indian pharma companies. market research reports
The demand for pharmaceutical products in India is significant and is driven by many factors like low drug penetration, rising middle-class & disposable income, increased government & private spending on healthcare infrastructure, increasing medical insurance penetration, changing demographic pattern and rise in chronic lifestyle-related diseases.
The Indian pharma industry is witnessing a shift in disease profile from the acute disease segment towards chronic diseases segment which is growing rapidly on the back of growing affluence, rise in life expectancy and the onset of lifestyle related conditions. In the coming years, chronic disease segment will drive the demand in the domestic formulations industry.
Bio-pharmaceutical segment is currently experiencing double digit growth driven by a significant increase in revenue across business segment including statins, immune-suppressants and insulin. Major growth drivers for Indian biopharmaceutical industry include education and increased awareness of disease prevention, increase in disposable income and government participation in immunisation programmes. Continued growth is also expected in the diagnostic and therapeutic segments, primarily oncology, diabetes and vaccines market.
The Indian CRAMS industry, valued at US$3.8 bn in CY2010 accounts for mere ~6% share of the global outsourcing market, indicating significant growth opportunity in this segment.
CARE Research expects this positive trend in the Indian pharmaceutical industry to continue in the coming years on the back of its manufacturing prowess coupled with a large domestic market having strong macroeconomic growth, expansion of healthcare infrastructure (private and public), rising incidence of chronic diseases and healthcare penetration to the extended urban and rural regions.
Demand triggers for the growth are:
- Between 2010 and 2015 patent drugs worth US$171 bn are estimated to go off-patent leading to a huge surge in generic products.
- High margin pharma export business is expected to grow at a higher rate than domestic market given increased in outsourcing activities.
- Increased M&A activities is set to consolidate the market which widens geographic reach, strengthens distribution network and venture into new therapeutic segments.
- Indian companies files the highest number of ANDA’s with USFDA leading to greater chances of approvals and thereby increasing export to regulated markets especially the US.
- There are currently approximately 175 USFDA and nearly 90 UK-MHRA approved pharma manufacturing plants in India which can supply high quality pharma products globally.
- Growth from rural markets will outstrip overall pharma market growth, albeit at lower margins, given lower penetration of 18-19% coupled with rising income level and awareness.
- Biopharmaceuticals is another potential high growth segment for Indian pharma growing at double digit driven by the vaccines market.
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