India accounts for 20 per cent of global exports in generics. India’s pharmaceutical export stood at US$ 20.70
billion in FY20.
Indian pharmaceutical sector is expected to grow at a CAGR of 22.4 per cent in the near future and medical
device market expected to grow US$ 25 billion by 2025. India is the second largest contributor of global
biotech and pharmaceutical workforce. The pharmaceutical sector was valued at US$ 33 billion in 2017.
Indian healthcare sector, one of the fastest growing sectors, is expected to cross US$ 372 billion by 2022
By FY25, India’s biotech industry is estimated to increase to US$ 100 billion
Biosimilar
The Government plans to allocate US$ 70 million
for local players to develop Biosimilar.
The domestic market is expected to reach US$ 40
billion by 2030.
As on August 2019, the moving annual turnover
(MAT) for biosimilar molecules sold in the
domestic market stood at Rs 1,498 crore (US$
214.31 million)
Contract Research and Manufacturing
Services (CRAMS)
Fragmented market with more than 1,000 players
CRAMS industry has posted 48 per cent CAGR
between FY15-18 and expected to witness a
strong growth over 25 per cent over 2018-21
Formulations
Largest exporter of formulations in terms of
volume, with 14 per cent market share and 12th in
terms of export value.
Double-digit growth is expected over the next five
years
India’s domestic pharmaceutical market turnover reached Rs 1.4 lakh crore (US$ 20.03 billion) in 2019, growing 9.8 per cent year-on-year (in Rs)
from Rs 129,015 crore (US$ 18.12 billion) in 2018.
Medicine spending in India is projected to grow 9-12 per cent over the next five years, leading India to become one of the top 10 countries in terms
of medicine spending.
India’s cost of production is significantly lower than that of the US and almost half of that of Europe. It gives a competitive edge to India over
others.
The Ayurveda sector in India reached US$ 4.4 billion by 2018 end and grow at 16 per cent CAGR till 2025.
In May 2020, the Indian pharmaceutical sales grew 9 per cent y-o-y to Rs 10,342 crore (US$ 1.47 billion)
1With 70 per cent of market share (in terms of revenues), generic
drugs form the largest segment of the Indian pharmaceutical sector.
Over the Counter (OTC) medicines and patented drugs constitute 21
per cent and 9 per cent, respectively
The share of generic drugs is expected to continue increasing;
domestic generic drug market is expected to reach US$ 27.9 billion
in 2020
Due to their competence in generic drugs, growth in this market
offers a great opportunity for Indian firms
Based on moving annual turnover, Anti-Infectives (13.6%), Cardiac
(12.4%), Gastro Intestinals (11.5%) had the biggest market share in
the Indian pharma market in 2018.
The highest growth in sales in 2018 were seen in hormones (14.2%),
anti diabetic (12.9%), and respiratory (12%).
During December 2019, on moving annual total (MAT) basis,
industry growth was at 9.8 per cent, with price growth at 5.3 per cent,
new product growth at 2.7 per cent while volume growth at two per
cent y-o-y.
India is the world’s largest provider of generic medicines; the country’s generic drugs account for 20 per cent of global generic drug exports (in
terms of volumes). Indian drugs are exported to more than 200 countries in the world, with the US as the key market.
Indian pharma companies are capitalising on export opportunities in regulated and semi-regulated markets.
Pharmaceutical export from India, which include bulk drugs, intermediates, drug formulations, biologicals, Ayush & herbal products and surgical,
reached US$ 20.70 billion in FY20.
The biggest export destination for Indian pharma product is the US. In FY19, 32.1 per cent of India’s pharma exports were to the North America,
followed by 17.96 per cent to Africa and 15.70 per cent to the European Union
Indian pharma companies spend 8-13 per cent of their total turnover on R&D.
Expenditure on R&D is likely to increase due to the introduction of product patents; companies need to
develop new drugs to boost sales.
47 per cent of top pharmaceutical companies in India are now providing tools for clinical decision support and
33 per cent are providing virtual caregiving support
India’s pharmaceutical export market is thriving due to strong presence in the generics space.
Pharmaceutical exports from India stood at US$ 20.70 billion in FY20 and US$ 1.53 billion in April 2020
In May 2020, Jubilant Generics Ltd entered into a non-exclusive licencing agreement with US-based Gilead
Sciences Inc to manufacture and sell the potential COVID-19 drug Remdesivir in 127 countries, including
India.
In June 2020, Syngene International Ltd developed its own ELISA antibody testing kits at its research facility
in Bengaluru and tied up with HiMedia Laboratories for manufacturing and distribution of the testing kits.
Sun Pharma arm enters China market by entering in agreement with China Medical System.
Sun Pharma entered into a global licensing agreement with Hyderabad based CSIR Indian Institute of
Chemical Technology
