India’s market size has nearly doubled in the last decade alone and this rapid growth has led to its place alongside the most successful pharmaceutical markets in the world. The Indian pharmaceutical market is estimated to reach a capital of $20 billion US in 2015, growing at an astounding compound annual growth rate (CAGR) of nearly 12 percent during 2005–2015. This means that 2015 will mark the year of its indoctrination into the coveted top 10 positioning of the world’s leading markets. Presently, it is not far from this achievement with a standing of third largest market in terms of volume and fourteenth in terms of value.
Large-cap generic drug manufacturers revenues in India are expected to grow for the following reasons:
- National volume growth has led to the benefit of an increasing number of doctors. These doctors have made it possible to penetrate a larger network of consumers. Consumers of the products will continue to rise from rural areas, which are previously untapped markets. What’s more is that rural growth rates are expecting a double digit increase, further lending a hand to the nation’s rapid growth. The urban market will also ensure sustainability through an expected steady growth rate.
- In the 5 years to come, drug patents from major regulated markets are set to expire. This occurrence will give the Indian pharmaceutical sector a chance to accumulate some of the $80 billion US market share from these regulated markets that are about to open up.
- China, Russia, Brazil and Mexico are some of the major countries experiencing rising growth rates in their sales, thus making them high opportune target markets.
- The slightly altered methods from what is used to create patented pharmaceuticals, known as Biosimilars, are predicted to propel long-term growth. Biosimilars are estimated to offer opportunities of $10 billion US in 2015, which is almost ten times larger than in 2010.
- Other beneficial opportunities include building health infrastructure, developing tertiary care units and tapping into medical tourism. India’s rise in changing demographics and lifestyles will likely lead to the increasing incidence of non-communicable and lifestyle-related diseases. These instances will lead to a new demand for tertiary care hospitals.
It is impossible to achieve great success without the possibility of at least a few risks. At present, major pharmaceutical companies are making the mistake of resting on their laurels, creating the opportunity for generic companies to wiggle their way through with innovation. This circumstance has resulted in the fierce race to obtain some of the capital the big companies may soon be losing. Another risk comes from the possibility of an over-saturated generic market, as companies in Europe and the US continue to supplement their nation’s growth by getting involved in generics.Finish
India’s pharmaceutical sector is a story of success and the end is nowhere in sight. Research initially set out by the government to bring affordable pharmaceuticals to its nation over 40 years ago has now resulted in a generic market that is competing in the world’s center stage. This has resulted in large capital growth for India, as well as making a strong social impact in the country.