Pharmaceutical industry

Made In India-Pharmaceutical Industry-2015

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• published: 29 Dec 2015
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The Pharmaceutical industry in India is the world's third-largest in terms of volume. According to Department of Pharmaceuticals the total turnover of India's pharmaceuticals industry between 2008 and 2009 was US$21.04 billion. India is one of the fastest-growing pharmaceutical markets in the world and has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce gives the industry a definite competitive advantage. India is today one of the top emerging markets in the global pharmaceutical scene. The sector is highly knowledge based and its steady growth is positively affecting the Indian economy. The organized nature of the Indian pharmaceutical industry is attracting several companies that are finding it viable to increase their operations in the country. In 2013, there were 4,655 pharmaceutical manufacturing plants in all of India, employing over 345 thousand people The government of India started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970. However, economic liberalization in 1990s enabled the industry to flourish. Indian companies carved a niiche in both the Indian and world markets with their expertise in engineering new processes for manufacturing drugs at low costs. Although some of the larger companies have taken small steps towards drug research and innovation, the industry as a whole has been following this business model until the present. The Indian pharmaceutical industry was estimated to be worth US$ 23 billion in 2 thousand 10 and is expected to touch US$ 55 billion by 2016. Globally, India ranks third in terms of volume of production and fourteenth largest by value. The domestic market is likely to grow from US$ 13 billion in 2010 to US$ 25 billion by 2017. The domestic pharma sector is witnessing strong growth due to higher penetration in tier-2 and tier-3 cities and greater focus on the largely- untapped rural market. The major factors responsible for this growth are increasing sales of generic medicines, continued growth in chronic therapies and greater penetration in rural markets. India exports to more than 200 countries; its share of exports is expected to grow incrementally. Pharmaceutical exports grew from US$ 8.6 billion in 2008 to US$ 14.5 billion in 2012, at a rate of 13.8 per cent. The US is India’s largest importer. The exports to the US grew at a rate of around 24 per cent between 2006 and 2010. The export of bulk drugs continue to grow to regulated markets and is supported by India’s existing foothold in semi-regulated market. India currently exports drug intermediates, Active Pharmaceutical Ingredients, Finished Dosage Formulations Bio-Pharmaceuticals, and Clinical Services across the globe. The exports of pharmaceuticals from India grew to US$ 14.6 billion in 2012from US$ 6.23 billion in 2006, registering a compound annual growth rate of around 15.2 per cent. India, with almost 200, US FDA drug manufacturing facilities, is the biggest foreign supplier of medicines to the United States . Exports to the US rose nearly 32 per cent last year to US$ 4.23 billion. India accounts for nearly 40 per cent of generic drugs and over-the-counter products and 10 per cent of finished dosages used in the US. Generic drugs have a dominant position in the rapidly expanding Indian drug industry. India's exports of generic drugs have been growing at a rate of 24 per cent over the past four years. In the period 2002 to 2012, the country’s healthcare sector grew 3 times in size, touching US$ 70 billion from US$ 23 billion. The Top 10 Publicly Listed pharma companies in India by Market Capitalization as of 2015 are Sun Pharmaceutical, Lupin Pharmaceuticals, Dr. Reddy's Labs, Cipla, Aurobindo Pharmaceutical, Cadila Healthcare, Glenmark Pharmaceuticals, Divis Labs and Torrent Pharmaceuticals. The Indian pharma industry is on a good growth path and is likely to be in the top 10 global markets in value terms by 2 thousand 20, according to the Price water cooper report. High burden of disease, good economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved healthcare financing are driving growth in the domestic market, the report highlighted. The small and medium enterprises are expected to play a significant role in the growth story of the country's pharma sector as they contribute 35–40 per cent to the industry in terms of production