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| Managment Discussion & Analysis |
Indian
Market
The Indian prescription market is Rs. 324 bill; with a 15% growth
rate at stockist level, based on market data for companies with
a national presence (IMS ORG Stockist Audit MAT April 08).
Prosperity, lifestyle changes, upward mobility continued to
be themes for India, and held true for the pharma market as
well.
Growth of the chronic segments was significantly higher than
acute therapy areas, a trend we’ve seen in previous years.
Acute
therapy products continued to grow at a pace that was higher
than in the previous years.
A continuing area of concern that affected pharma companies
this year as well, was the pricing policy and the numerous price
changes brought about by the price monitoring body, the NPPA.
Excise was reduced as a part of the budget proposals. To recap-
the previous drug price policy is based on essentiality and
covered 74 molecules used as antibiotics, painkillers or were
used in
national health care programs such as tuberculosis eradication
or blindness prevention. The government has to walk a thin line
between affordable costs and availability, given the lack of
infrastructure for healthcare delivery in the country, where
only a
small fraction of the population has access to modern healthcare,
particularly in rural areas and smaller towns; healthcare
insurance is as yet, minimal, and current polices do not cover
ailments that are treated with outpatient visits such as
hypertension or diabetes (and are generally limited to post
surgery or hospitalization care), and the patient pays for most
healthcare.
Changes in the healthcare policy now require drugs used in the
treatment of chronic or lifestyle areas to be added to the list
as
well. This change would increase the span of medicines under
control to 350. This move, in a nation where medicine prices
are
amongst the lowest worldwide, may lead to lower growth in the
pharma sector and at the end of the day may not possibly be
in the best interests of the consumer. After concerns raised
by the various industry associations, the draft policy is being
examined by one of the highest bodies in the country, the Group
of Ministers. The time horizon and the final form that this
authoritative policy reaches the patient in, is open to conjecture.
MAT IMS-ORG For
Apr '08>> |
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