According to IMS, emerging markets are expected to become an even larger part of global growth in the years ahead. Annual pharma sales in emerging markets is expected to cross $400 bill by 2020, equivalent to current sales in the US & five other major European markets. Currently, emerging markets account for 13% of worldwide market growth, and are expected to reach 50% market growth by 2020. Countries like India, China, Brazil, Russia, Mexico are expected to grow 12-13% whereas mature markets are likely to grow at low single digit rates.

Emerging market needs are quite different in terms of product portfolio and competition is fairly intensive.

For Sun Pharma, our markets across China, Russia, Brazil, Mexico & neighboring countries continued to be the fastest growing part of our business. In most of these, the race is to emerge as the first branded generic and build up prescription share.

In several markets such as Brazil and Mexico, there have been internal compulsions that have resulted in preference for local industry over imports and in some cases even a re-examination of licenses. On a positive note, in some countries like Mexico, branded generics from internationally approved sites in India have been gaining acceptance and prescriptions, at times at a preference over locally made generics. With inflation and an increasing need for cost containment, one can expect increasing preference for branded generics or locally manufactured generics. In some countries like Sri Lanka, years of civil strife have put pressures on the economy, and resulted in a preference for generics/branded generics over the long term. Companies with strong political affiliations have emerged as strong competitors in some countries. Structural changes in some markets, for instance in the way medication budgets are administered in a now-decentralized Russia, have necessitated a change in the way we market brands in that country.

Our origins as a developing country company with strong product promotion skills and a ready portfolio of brands in speciality areas to choose from, strengthens our international plans. We pick & choose products from the range that we market in India, depending on country-specific requirements. Encorate chrono, a seizure medication, and Pantocid, an antiulcerant, continue to be amongst the largest brands we market internationally.

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