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Generic drug industry to cross USD 27 9 billion by 2020 study

Domestic generic drug market is expected to cross US$ 27.9 billion from current level of US$ 13.1 billion
Generic drug industry to cross USD 27 9 billion by 2020 study

Domestic generic drug market is expected to cross US$ 27.9 billion from current level of US$ 13.1 billion registering compound annual growth rate (CAGR) of about 16.3% particularly due to approval accorded by US FDA makers and 21 drugs patent losing patent by 2019, according to the joint study brought out by ASSOCHAM and RNCOS.

Generics would account for 85% share in the domestic pharma market by 2020, fuelled by cheap labour, patent cliff of blockbuster drugs and prevalence of lifestyle diseases, according to a study on ‘Generic Medicines in India- Promulgating Growth & Access,’ jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and RNCOS.

Generic drugs account for 75% of the domestic pharmaceutical market by value. Drugs for cholesterol control, pain management, anticoagulant, respiratory, liver disorders, depression and lipid regulators are highly prevalent in the global market. Recently, Sun Pharma got the US FDA nod to manufacture generic hydocodone bitartate with acetaminophen (APAP) tablets. It is a narcotic analgesic indicated in the treatment of relief of moderate to moderately severe pain of acute, chronic, or post-operative types, adds the study.

However, the influence of physicians in India in terms of prescribing branded medicines and the lack of drug pricing control laws have limited the consumption of unbranded generics in the domestic market. Thus, Generics majors like Sun Pharma, Lupin, Dr, Reddy’s etc., have been targeting international markets for their revenue, adds the study.

With key initiatives announced by Modi Government to include price control policies and the revision of Jan Aushadhi campaign, the market is likely to show a notable incline in the penetration of unbranded drugs, said DS Rawat Secretary General ASSOCHAM.

The domestic pharma market was valued at US$ 15.4 Billion in 2014 and is expected to expand at a CAGR of 13.3% to US$ 32.7 Billion by 2020. Driven by favorable demographics including growing aging population, increasing lifestyle diseases, steep growth in disposable incomes, and increasing penetration of Indian drug players in the global market, India is likely to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size, highlighted the study.

The major export markets for the country’s pharmaceutical products are Americas, Europe, China, Japan, Africa, etc. The US is single largest export destination. It accounts for nearly 28% of Indian pharmaceutical exports, followed by the European Union (18%) and Africa (17%). The pharma exports to the US market are high due to the large number of approvals from the USFDA. India has been the third-largest exporter of drugs to the US market by volume and it has 370 FDA-approved manufacturing facilities outside the US, which is the second largest in the world.

ASSOCHAM has also recommended focus on quality control, creation of robust supply chain network, support to other states, access to modern technology, need for infrastructure development, need for increasing awareness programmes, Encouraging New Entrepreneurs etc, adds the joint study.

India ranks 4th in pharmaceutical production in the world with a production output of about US$ 31 Billion in 2014. The country has a 1.4% share by value and 10% by volume in the global pharma industry. India is one of the leaders in pharmaceutical exports. The country exports drugs worldwide to more than 200 countries.

The major export markets for the country’s pharmaceutical products are Americas, Europe, China, Japan, Africa, etc. The US is single largest export destination. It accounts for nearly 28% of Indian pharmaceutical exports, followed by the European Union (18%) and Africa (17%). The pharma exports to the US market are high due to the large number of approvals from the USFDA. India has been the third-largest exporter of drugs to the US market by volume and it has 370 FDA-approved manufacturing facilities outside the US, which is the second largest in the world.
 

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