IBEF-印度制药业报告（英文）-2018.9-34页-1mb

Summary of the Indian Pharmaceutical Industry

Core Content

The Indian pharmaceutical industry is one of the fastest-growing and most competitive sectors globally, playing a pivotal role in the supply of generic and branded medicines. It is a key player in the global market, with significant export capabilities and a strong domestic demand.

Main Points

Industry Overview

• India is a leading producer of generic medicines, supplying over 50% of global vaccine demand and 40% of generic demand in the US.
• The pharmaceutical sector is valued at over US$ 33 billion in 2017 and is projected to grow at a CAGR of 22.4% to reach US$ 55 billion by 2020.
• The healthcare sector is expected to cross US$ 372 billion by 2022, driven by rising incomes and better medical infrastructure.

Market Segmentation

• Generic drugs form the largest segment, accounting for 70% of the pharmaceutical industry's revenue.
• Formulations are the largest exporter in terms of volume, with a 14% market share.
• The OTC market is growing at a CAGR of 16.3% and is expected to reach US$ 6.6 billion by 2016, with further growth anticipated.

Export Trends

• India's pharmaceutical exports reached US$ 17.27 billion in FY18 and are expected to grow to US$ 20 billion by 2020.
• The US is the key export market, accounting for 38% of formulated product exports in 2017.
• India is the largest provider of generic medicines globally, exporting to over 200 countries.

Growth Drivers

• Cost Advantage: India's production costs are significantly lower than those in the US and Europe, giving it a competitive edge.
• Healthcare Expansion: The government's increased spending on healthcare, including the National Health Protection Scheme, is expected to boost the pharmaceutical sector.
• R&D Investment: R&D investment by Indian pharma companies has increased from 5.5% of sales in FY11 to 9% in FY17, with companies like Sun Pharma and Lupin leading in this area.
• Medical Infrastructure: The growth of medical infrastructure and rural market penetration is a key factor in the sector's expansion.
• Policy Support: Initiatives like 'Pharma Vision 2020' and the establishment of single-window clearance mechanisms aim to streamline drug approval and enhance industry growth.

Strategies Adopted

• Cost Leadership: Companies like Sun Pharma and Lupin focus on vertical integration and R&D to maintain cost efficiency.
• Differentiation: Firms are expanding into new markets such as Latin America, Russia, and China.
• Joint Ventures and M&A: Several Indian pharma companies have formed joint ventures and acquired foreign firms to enhance their capabilities and market presence.

Opportunities

• Clinical Trials: India is a leader in the clinical trials market, with a 400% increase in trials between 2013 and 2017.
• High-End Drugs: Rising income levels and population growth are expected to increase demand for high-end pharmaceutical products.
• Rural Market Penetration: With 70% of the population in rural areas, there is significant potential for growth in this segment.
• CRAMS Industry: The Contract Research and Manufacturing Services (CRAMS) industry is growing at a CAGR of 18-20%, reaching US$ 18 billion in 2018.

Key Statistics

• Pharma Exports: US$ 17.27 billion in FY18, expected to reach US$ 20 billion by 2020.
• Generic Market: Expected to reach US$ 27.9 billion by 2020, with 20% of global generic exports.
• Biotech Growth: The biotech industry is projected to reach US$ 100 billion by 2024-25.
• R&D Spending: Sun Pharma's R&D spending was 7.6% of total sales in FY17, growing at a CAGR of 38.3% from FY11 to FY17.
• Government Expenditure: Increased from Rs 1.26 lakh crore (US$ 19.55 billion) in FY12 to Rs 2.25 lakh crore (US$ 34.91 billion) in FY18, with a CAGR of 12.3%.

Useful Information

Industry Associations

• Indian Pharmaceutical Association (IPA):

  • Address: Kalina, Santacruz (E), Mumbai - 400 098
  • Contact: Phone: 91-22-2667 1072, Fax: 91 22 2667 0744, Email: ipacentre@ipapharma.org, Website: www.ipapharma.org

• Organisation of Pharmaceutical Producers of India (OPPI):

  • Address: Peninsula Chambers, Ground Floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013
  • Contact: Phone: 9122 24918123, 24912486, 66627007, Fax: 9122 24915168, Email: indiaoppi@vsnl.com, Website: www.indiaoppi.com

• Indian Drug Manufacturers' Association (IDMA):

  • Address: 102-B, Poonam Chambers, Dr A.B. Road, Mumbai - 400 018
  • Contact: Phone: 91-22-2494 4624/2497 4308, Fax: 9122 24950723, Email: idma1@idmaindia.com, Website: www.idma-assn.org

• Bulk Drug Manufacturers Association (BDMA):

  • Address: C-25, Industrial Estate, Sanath Nagar, Hyderabad - 500018
  • Contact: Phone: 91 40 23703910/23706718, Fax: 91 40 23704804, Email: info@bdmai.org, Website: www.bdmai.org

Glossary

• CRAMS: Contract Research and Manufacturing Services
• API: Active Pharmaceutical Ingredients
• FDI: Foreign Direct Investment
• GOI: Government of India
• INR: Indian Rupee
• US$: US Dollar
• BPL: Below Poverty Line
• RSBY: Rashtriya Swastha Bima Yojna
• ESIC: Employees State Insurance Corporation

Exchange Rates

Fiscal Year (FY) Exchange Rates

Calendar Year (CY) Exchange Rates

Notes

• All figures are based on the latest available data.
• The government's initiatives and policy measures, such as 'Pharma Vision 2020', are playing a crucial role in the industry's growth.
• The pharmaceutical industry is expected to continue its robust growth due to increasing demand, cost efficiency, and supportive policies.