Indian pharma market set to grow to $55 billion by 2020
pharmafile | January 28, 2016 | News story | Sales and Marketing | GlobalData
The pharmaceuticals market in India, valued at $20 billion in 2015, is set to soar to $55 billion by 2020, growing at 22.4% CAGR to the end of the decade, says research and consulting firm GlobalData.
According to the company’s latest report, entitled ‘CountryFocus: Healthcare, Regulatory and Reimbursement Landscape – India’, the country’s rapidly growing generics market will be the primary driver of the pharmaceutical sector growth, with sales expected to rise by nearly 84% to $26.1 billion in 2016.
Generic drugs, with their low costs and easy accessibility, currently dominate India’s pharmaceutical space, accounting for around 70% of the market. Adam Dion, MSc, GlobalData’s senior industry analyst, comments: “India supplies 20% of global generic medicines in terms of export volume, making the country the largest provider of generic medicines globally. Indeed, Indian pharmaceutical companies are now exporting to countries like Brazil, Mexico, South Africa, Russia and Japan, and, according to India’s Ministry of Commerce and Industry, the nation’s pharmaceutical export segment has more than doubled from $7.8 billion in 2008 to $16.5 billion in 2014.”
Another driver of India’s pharmaceutical sector is the potentially lucrative global biosimilars market, which is predicted to undergo substantial growth, increasing to $40 billion by 2020, as biologic treatments are introduced for diseases such as diabetes, cancer, multiple sclerosis, and rheumatoid arthritis.
Dion believes leading Indian pharma company Dr Reddy’s laboratory is best placed to profit from this growth: “In 2007, Dr Reddy’s was the first to launch a biosimilar version to Roche’s cancer drug rituximab (Rituxan), and has four other biosimilars on the market. The company’s drug characterisation strategy and quality measures give Dr Reddy’s a significant competitive advantage that reduces the uncertainty of potential outcome differences when used in patients.”
Joel Levy
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