2. Indian Pharma Sector at a glance
India is among the top 6 global pharmaceutical producers in the world. Exports
vaccines to 150 countries. 30-35% cheaper than US market
Produces 40-70% of the WHO demand for DPT & BCG & 90% of measles
vaccine. Home to 10,500 manufacturing units & over 3,000 pharma companies
Globally more than 90 per cent of formulations approvals for Anti-retroviral
(ARVs), Anti-tubercular & Anti-malarial (WHO pre-qualified) have been granted to
India.
Pharma exports stood at US$ 15 billion in 2013-14.
It is 1.4 % of the global pharmaceutical industry by value & 10% by volume.
The Government policies favoring the healthcare industry, improving the quality
of pharmaceuticals and improving the quality of medical training.
India’s pharma sales are expected to reach US$ 27 billion by 2016.
India is well placed to become one of the major drivers in providing healthcare to
all while controlling the ever-increasing healthcare spend of both developed and
developing nations.
3. Market Size
The Indian pharmaceutical industry is estimated to grow at 20 % CAGR over the next 5 years.
Indian pharmaceutical manufacturing facilities registered with US Food and Drug Administration
(FDA) as on March 2014 was the highest at 523 for any country outside the US.
Domestic pharma market to grow at 10-12 % in FY15 as compared to 9 % in FY14, as per a
recent report from Centrum Broking.
The domestic pharma growth rate was 11.9 per cent in October 2014, highlighted the report.
Gujarat clocked the highest growth rate in pharmaceuticals market at 22.4 per cent during
November 2014, surpassing the industry growth rate, which grew by 10.9 per cent.
Also, growing at an average rate of about 20%, India's biotechnology industry comprising bio-
pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics may reach the US$
7 billion mark by the end of FY15.
Biopharma is the largest sector contributing about 62 per cent of the total revenue, with revenue
generation to the tune of over Rs 12,600 crore (US$ 2.03 billion). The bio-pharma sector
comprises vaccines, therapeutics and diagnostics.
4. Market analysis
Supply: Higher for traditional therapeutic segments, this is typical of a developing market.
Relatively lower for lifestyle segment.
Demand: Very high for certain therapeutic segments. Will change as life expectancy, literacy
increases.
Barriers to Entry: Licensing, distribution network, patents, plant approval by regulatory
authority. Ease of doing business is difficult
Bargaining power of suppliers: Distributors are increasingly pushing generic products to earn
higher margins.
Bargaining power of buyers: Highly fragmented industry ensures widespread competition .
Currently, the domestic market is also protected by the DPCO.
Competition: Highly fragmented industry with the top 20 companies account for 60% of the total
sales.
5. Roads Ahead
Market size is expected to grow to US$ 85 billion by 2020.
The growth in Indian domestic market will be on back of increasing consumer spending, rapid
urbanization, raising healthcare insurance and so on.
Better growth in domestic sales of product portfolio aligned towards chronic therapies for diseases such
as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers are on the rise.
Government’s cost effective measures to bring down healthcare expenses.
Government focusing on speedy introduction of generic drugs into the market.
The thrust on rural health programs, life saving drugs and preventive vaccines also augurs well for the
pharma companies.
6. Overall a Smart Choice
THANK YOU
Amazing
Savings
Passionate
Team
TransparentConvenient