You are here
India’s pharma sector pips global growth
The global pharma industry is set to grow at an annual rate of 5% between 2015 and 2020 to cross $1.3 trillion by 2020 while the Indian market is expected to grow over 15% annually in this period, according to a study by UBM India, the Indian arm of London-based media and events company.
The report says the global pharma market is currently estimated to be over $1 trillion in value, of which the US accounts for over 40%, followed by the European Union and Japan.
The report divides the global pharma market into patented pharma products and generics. Generics currently account for over 45% of the global market by volume and about 20% by value. In India, about 70% of the industry revenue comes from generics, 21% from over-the-counter drugs and the rest from patented drugs.
As per the study, India pharma industry has grown over 15% annually in the last decade and is expected to continue on the path for the next five years. India is expected to rank among the top 10 markets globally by 2020 in value terms. The study added that the merger and acquisition activities in India have touched $25.62 billion during the first nine months of 2015, out of which 16 deals worth $1.7 billion was in the pharma sector.
“The global pharma market is expected to undergo a number of transitions. Some of the factors which could influence the transition include shift of growth from the developed to the emerging markets; an increasing focus on biopharmaceuticals compared to small molecule drugs and an increasing preference for generics compared to their branded versions,” the report said.
Indian pharmaceuticals market is the third largest in terms of volume and 13th largest in terms of value. India’s exports are expected to account for 72% of the total pharma production and reach a value of $40 billion by 2020, the report added.
India currently has second highest number of US Food and Drug Administration (FDA) approved plants after the US and accounts for 22% of overall US FDA approved facilities. The industry is fragmented with more than 20,000 manufacturing units in the organized as well as unorganized segment.