As per a study by ASSOCHAM, the domestic generic drug market will see positive growth backed by the USFDA approvals to Indian pharma firms
According to a study by industry body ASSOCHAM and market research firm RNCOS, the domestic generic drug market is likely to grow to $27.9 billion by 2020. Backed by recognition from the USFDA, the market size will grow from the current $13.1 billion, as US continues to be the largest export pharma market for India. EU and Africa are the second and third largest market for pharma exports respectively.
Even though the domestic pharma majors continue to face hurdles for consumption in the Indian market itself, as the study observed that the influence of physicians in India in terms of prescribing branded medicines are among the factors that have limited the consumption of unbranded drugs in the domestic market; the generics would account for 85 per cent share in the domestic pharma market by 2020. Another reason cited for the growth is many drugs losing their patent status, as the study stated.
As further reported by PTI
The sector is likely to benefit from USFDA approvals to Indian pharma firms as 21 drugs lose patent status by 2019, it said.
Generic drugs account for 75 per cent of the domestic pharmaceutical market by value. Drugs for cholesterol control, pain management, anti-coagulant, respiratory problems, liver disorders, depression and lipid regulators are highly prevalent in the global market.
Recently, Sun Pharma got USFDA nod to manufacture generic hydocodone bitartate with acetaminophen (APAP) tablets. It is a narcotic analgesic indicated in the treatment of moderate to moderately severe pain of acute, chronic, or post-operative types, the study pointed out.
However, the sluggish rise in domestic demand has led the generic drug majors like Sun Pharma, Lupin and Dr Reddy’s to target international markets.
“With key initiatives announced by the 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,” Assocham Secretary General D S Rawat said.
The overall domestic pharma market was valued at $15.4 billion in 2014 and is expected to expand at a CAGR of 13.3 per cent to $32.7 billion by 2020, the study noted.
Driven by favourable demographics including growing ageing population, increasing lifestyle diseases, steep growth in disposable incomes and increasing penetration of domestic drug players in the global market, India is likely to be among the top three pharmaceutical markets globally by incremental growth and sixth largest in absolute size, it said.
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 has 370 FDA-approved manufacturing facilities outside the US, which is the second largest in the world, the study said.
India ranks fourth in pharmaceutical production in the world with an output of about $31 billion in 2014.
The country has a 1.4 per cent share by value and 10 per cent by volume in the global pharma industry. It exports drugs to more than 200 countries.