Pharmaceutical Drug Manufacturers

14 April 2010- Indian Pharmaceutical Industry has already been placed among the top four emerging markets in pharma industry by the market research report published by IMS Health Inc. The global pharmaceutical industry, in the last few years, has shown high interest in India pharma industry because of its sustained economic growth, healthcare reforms and patent-related legislation. In this view, it seems apt to have Indian pharmaceutical industry analysis by knowing the industry trends 2010 and its future perspectives.

Indian Pharmaceutical Industry Trends 2010

Indian domestic pharmaceutical market has seen growth at a CAGR of about 12% in the last 5 years. About 67 Million Indians are expected to reach the age of 67 years by 2011. People of this age group spends around 3 to 4 times more on drugs than people in younger age groups. This indicates substantial growth of Indian pharmaceutical industry. Patented drug are expected to have a 10% market share of pharmaceutical industry in 2010. Incomes of people in rural India is on a rise and the distribution network of drugs is also very strong. These factors are contributing to a high growth of India's rural pharmaceutical market. The positive approach towards product patent product has encouraged the Indian pharmaceutical companies to invest more in Research and Development. Indian pharmaceutical market is expected to have compound annual growth rate of 9.5 per cent by 2015.
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Indian Pharmaceutical Industry- Future Perspectives

Future trends of Indian pharmaceutical industry seems to be in positive tone. Consumer spending on healthcare services and products has increased in India due to the increasing affordability, shifting disease patterns and modest healthcare reforms. Healthcare budget of an average Indian household is expected to grow from 7% in 2005 to 13% in 2025. The future trends of Indian pharmaceutical industry can be listed as under.

• By 2015, India will probably open a US$ 8 billion market for multi national pharmaceutical companies selling expensive drugs as predicted by the FICCI-Ernst & Young India study.
• The domestic India pharma market is likely to reach US$ 20 billion by 2015.
• A whopping amount of US$ 6.31 billion will be invested in the Indian pharmaceutical industry as per the estimates of the Ministry of Commerce, Government of India.
• Indian pharmaceutical off-shoring industry is predicted to be a US$ 2.5 billion opportunity by 2012 all because of low cost of R&D.
• Patented drugs are predicted to capture up to a 10% share of the total Indian pharmaceutical industry by 2015 with a market size of US$2 billion.
• The branded generics market will continue to dominate the Indian pharmaceutical industry. Sixty one drugs worth US $ 80 billion will go off patent at the US Patent and Trademark Office between 2011 and 2013. Indian pharmaceutical industry is all set to gain from the patent expiry of some blockbuster drugs by producing their generic equivalents. However, the influence of physicians will remain high that will ensure fair competition on the basis of product quality and scientific detailing.
• By 2015, the specialty and super-specialty therapies will account for 45% of the pharma market. The growing lifestyle disorders, particularly metabolic disorders like diabetes and obesity as well as coronary heart disease and hypertension, cardiovascular, neuropsychiatry and oncology drugs will gain considerable significance.
• Although there will be a shift towards specialty therapies, mass therapies will remain important in the Indian pharmaceutical industry. This will be, primarily due to the gap between the prevalence of common diseases and their treatment rates. Diseases like anaemia, diarrhoea, gastro-intestinal & respiratory problems, acute pain, infections etc. is suffered by a large number of population. The growing income levels will also increase spending on basic healthcare and the consumption of mass therapy drugs for acute ailments.

The Indian pharmaceuticals industry has grown reasonably during the past decade and has the potential to transform itself over the next decade too. The domestic pharma market of India will play a crucial role in fighting the growing diseases. However, the full potential of Indian pharmaceuticals can only be achieved through sustained, progressive and collaborative efforts by the government and the pharmaceutical industry as a whole.

To know the global pharmaceutical industry trends, read Pharmaceutical Market Trends 2010