The Indian domestic pharmaceutical market is estimated to be INR 90,400 crore ($ 15 billion) ending FY15 with a growth of 12%. It is estimated that almost 27-30% of India’s pharmaceutical market is catered to by multinationals operating in India and around 4,60,000 people are estimated to be employed in the pharmaceutical industry.
Top 20 companies account for 64% of the market: 8 out of the top 20 are growing faster than the market, with Macleoids topping the list with 23.4% growth followed by Intas with 21.3%, Cipla 19.7% Glenmark over 19.4% growth and Mankind 19.3%. Besides, India’s pharma exports stood at $ 15.3 billion in 2014-15. There were M&A activities in the industry accounted for $ 5.78, billion an increase of around 44.5% in comparison to 2013.
The government’s continuous and concerted efforts have resulted in the reach of modern medicine to almost all corners of the country, and its measures have resulted in the steady decline of communicable diseases.
The successful eradication of polio, smallpox etc. can be attributed entirely to the tireless efforts of the government. The Ministry of Health and Family Welfare is responsible for the implementation of national health and family welfare programmes such as the prevention and control of major communicable diseases, maternal and child health.
Public-private partnerships, an increased penetration of healthcare facilities in non-metro cities, involvement of multinationals in setting up facilities in the country, and establishment of educational institutions, are just a few multiple prime reasons enabling India to experience a surge in the global market.
Other key assets which have played a role in India becoming a leading pharma market are a thorough know-how in the manufacture of generics, rapidly developing research and development facilities with talented technical staffing, internationally recognised systems of pharmacy education, and a broad patient population pool enabling intense clinical trials.
India accounts for 30.3% (2,911) of 9619 Drug Master Files (DMFs) filed with the USA, which is the highest outside of the USA. India has been accredited with approximately 1187 CEPs, more than 950 TGA, and 584 sites approved by USFDA. Despite a challenging intellectual property regime, pharmaceutical R&D activities are increasing in India.
An average of 8-10% of the total revenue of the India domestic pharma market, that is $ 15 billon, is spent on R&D. Zydus Cadilla has launched “Lipaglyn” (Sarogltazar), its original research being to treat hypertrigycerdemia in type-2 diabetes. Glenmark has several new chemical and biologics. Contract research and manufacturing services (CRAMS) in India is estimated to reach $18 billion in 2018, up from $ 7.6–7.8 billion in 2013. The biopharma market is valued at $ 2.5 billion, whereas India is expected to grab at least 20-25% of global market share in biosimilars in the next 5 years.
India is also making inroads to new regulated markets like Japan. Several initiatives have been undertaken by industry for engaging with Japanese pharma companies, including contract manufacturing of advance intermediates for drugs under clinical development/about to be made commercial, marketing APIs to Japanese Generic and Innovation companies, providing quality intermediates to the Japanese innovator companies.
In summary, the last few years have reshaped and repositioned India in the realm of healthcare and pharmaceuticals, and the results have started to show in its high ranking position in the global pharmaceutical market.