The flourishing Indian drug market needs to concentrate on product counterfeiting and more spending on healthcare systems to enjoy a bright future ahead.
According to PricewaterhouseCoopers (PwC), India is expected to be in the league of 10 leading drug markets in coming ten years. It is likely to be worth at least US$50 Billion (Rs2.2 Trillion), as per the news published by Livemint
Indian drug manufacturers are expected to become contender to global drug manufacturers in some spheres. They are also likely to become a potential partner in various other segments like clinical trials, drug research, and contract manufacturing.
India possesses a significant expertise in contract manufacturing and leads in the manufacture of generic or off-patent vaccines and drugs, and this is the major reason for such a remarkable growth. Over 20% of world’s generics are produced in India. Drugs worth nearly US$ 70 Billion are likely to go off patent in the USA, offering India a chance to manufacture a considerable share of the products to exploit the ensuing generics opportunity.
Foreign players are also expected to increasingly discover investment opportunities in the country in establishing research centers, outsourcing production services, and authorizing products and technologies. In manufacturing, pharmaceutical firms are strengthening bonds with Indian players to serve the world markets via marketing alliances like the joint venture of Dr Reddy’s Laboratories Ltd and Glaxo SmithKline Plc in 2009.
Growth is also expected in the pharma export market besides domestic market. According to a market research report titled “Booming Pharma Sector in India
” by RNCOS
, from an estimated Rs.244 Billion (US$ 5.48 Billion) in 2009-10, pharma exports will arrive at Rs. 593 Billion (US$ 13.31 Billion) by 2011-2012.
The report also reveals that due to the implementation of severe price control norms in the Indian drug market that are encouraging drugmakers to exports so as to harvest better margins and growth in generics, mainly in the US, Europe and Japan, the pharma exports are likely to grow.
According to a Research Analyst at RNCOS
, “The Indian drug market has a dazzling future. However, still there are some constraints in the market, and the presence of fake drugs is one of them. This constraint may smudge the reputation of India as a quality drug manufacturer. The sector’s growth is also hindered by the lack of government initiative to spend on healthcare systems. So to experience a glittery future, India has to work a lot on overcoming these obstacles.”
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German Pharma Sector Analysis
Russian Pharma Sector Forecast to 2013
Emerging Pharmaceutical Markets Globally