India’s pharmaceutical market is swiftly rising, with a market size that has just about doubled itself in the last decade alone. India’s market share is expected to reach $20 billion US in 2015, growing at an astounding compound annual growth rate (CAGR) of just shy of 12 percent during the period of 2005–2015. This will see the market establish its presence among the top 10 leading markets worldwide for the first time. As it stands, it is the third largest market in terms of volume and fourteenth by way of value.
The profits of large-cap generic drug manufacturers in India are expected to grow:
- An increase in doctors is the beneficial result of national volume growth. These doctors have made it possible to spread into a larger network of consumers. Consumers of the pharmaceuticals will substantially rise in the rural areas, which are previously untapped markets. Rural growth rates are expecting a double digit increase, further lending a hand to this increase. The urban market will ensure sustainability through a steady growth rate.
- In the next 5 years, an amazing new opportunity will come from regulated market drug patent’s expiration dates. This occurrence will give the Indian pharmaceutical sector a chance to gain some of the $80 billion US market share from these regulated markets that are about to become free.
- China, Russia, Brazil and Mexico are some of the countries experiencing appreciating growth rates in sales, thus making them key high opportune target markets.
- Biosimilars, the slightly altered methods used to create generic pharmaceuticals, are predicted to fuel long-term growth. Biosimilars are estimated to offer opportunities of $10 billion US in 2015, which is an increase almost ten times larger than in 2010.
- • Other opportunities for further development in this sector include building health infrastructure, developing tertiary care units and tapping into medical tourism. India’s upwardly adapting demographics will likely lead to the increasing incidence of non-communicable and lifestyle-related diseases. These instances will prompt the development of a new demand, an expanding need for tertiary care hospitals.
It would be an amateur move for India’s pharmaceutical industry to proceed without evaluating the potential road blocks that may come up along the way. As it stands, the major pharmaceutical companies are not putting their resources into research and development, thus creating the opportunity for generic companies to squeeze their way into the market through innovation. This reality has resulted in the race to scrape up some of the capital the big companies may soon be losing as a result of their stagnancy. Another risk comes from the potential over-saturation of the generic market, as companies in big markets such as Europe and the US continue to supplement their nation’s growth with their involvement in generics.Last leg
The pharmaceutical sector in India is a great accomplishment for the country’s economic and social growth. The research initiated by the government to bring affordable pharmaceuticals to its nation has now resulted in a generic market that is one of the top in the world. Over 40 years ago, no one could have predicted the level of capital growth this industry would continue to produce for India.