This is Market analysis on Indian #Pharma industry

1. www.meramedicare.com
Market Analysis Pharmaceutical Industry in India
Rohit Kumar

2. Indian Pharma Sector at a glance
India is among the top 6 global pharmaceutical producers in the world. Exports
vaccines to 150 countries. 30-35% cheaper than US market
Produces 40-70% of the WHO demand for DPT & BCG & 90% of measles
vaccine. Home to 10,500 manufacturing units & over 3,000 pharma companies
Globally more than 90 per cent of formulations approvals for Anti-retroviral
(ARVs), Anti-tubercular & Anti-malarial (WHO pre-qualified) have been granted to
India.
Pharma exports stood at US$ 15 billion in 2013-14.
It is 1.4 % of the global pharmaceutical industry by value & 10% by volume.
The Government policies favoring the healthcare industry, improving the quality
of pharmaceuticals and improving the quality of medical training.
India’s pharma sales are expected to reach US$ 27 billion by 2016.
India is well placed to become one of the major drivers in providing healthcare to
all while controlling the ever-increasing healthcare spend of both developed and
developing nations.

3. Market Size
The Indian pharmaceutical industry is estimated to grow at 20 % CAGR over the next 5 years.
Indian pharmaceutical manufacturing facilities registered with US Food and Drug Administration
(FDA) as on March 2014 was the highest at 523 for any country outside the US.
 Domestic pharma market to grow at 10-12 % in FY15 as compared to 9 % in FY14, as per a
recent report from Centrum Broking.
The domestic pharma growth rate was 11.9 per cent in October 2014, highlighted the report.
Gujarat clocked the highest growth rate in pharmaceuticals market at 22.4 per cent during
November 2014, surpassing the industry growth rate, which grew by 10.9 per cent.
Also, growing at an average rate of about 20%, India's biotechnology industry comprising bio-
pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics may reach the US$
7 billion mark by the end of FY15.
Biopharma is the largest sector contributing about 62 per cent of the total revenue, with revenue
generation to the tune of over Rs 12,600 crore (US$ 2.03 billion). The bio-pharma sector
comprises vaccines, therapeutics and diagnostics.

4. Market analysis
Supply: Higher for traditional therapeutic segments, this is typical of a developing market.
Relatively lower for lifestyle segment.
Demand: Very high for certain therapeutic segments. Will change as life expectancy, literacy
increases.
Barriers to Entry: Licensing, distribution network, patents, plant approval by regulatory
authority. Ease of doing business is difficult
Bargaining power of suppliers: Distributors are increasingly pushing generic products to earn
higher margins.
Bargaining power of buyers: Highly fragmented industry ensures widespread competition .
Currently, the domestic market is also protected by the DPCO.
Competition: Highly fragmented industry with the top 20 companies account for 60% of the total
sales.

5. Roads Ahead
Market size is expected to grow to US$ 85 billion by 2020.
The growth in Indian domestic market will be on back of increasing consumer spending, rapid
urbanization, raising healthcare insurance and so on.
Better growth in domestic sales of product portfolio aligned towards chronic therapies for diseases such
as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers are on the rise.
Government’s cost effective measures to bring down healthcare expenses.
Government focusing on speedy introduction of generic drugs into the market.
The thrust on rural health programs, life saving drugs and preventive vaccines also augurs well for the
pharma companies.

6. Overall a Smart Choice
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