Indian Pharmaceutical Market

India is the world's fourth largest pharmaceutical market in terms of volume and the 15th largest in terms of value (USD 8 billion) (Source: ORG IMS). It is primarily a retail-based branded generic market with 80% dispensed through pharmaceutical outlets. As in most emerging economies, acute therapies dominate and account for close to 75% of the market.

The Indian pharmaceutical industry has recorded a CAGR of 13.5% over the past five years. However, over the past two years, growth slowed a bit to 12.6%. Chronic therapies, such as diabetes, cardiovasculars, and products used to treat central nervous system ailments, are growing faster than acute therapy. While there was a slight decline in revenue growth in the first nine months of FY09, this probably was largely driven by a cut in excise duty from 8% to 4% that was passed through.

A draft of a new/revised drug price policy was being previously examined by the group of Cabinet Ministers in the country. The draft proposal seeks to expand the number of drugs significantly, to 354 molecules including those used to treat lifestyle ailments, under the purview of a pricing control regime. We continue to monitor the developments and will be able to assess our situation with respect to the policy only when the final policy is out. With a new government in place, this could likely be reviewed afresh.

With the domestic economy slowing, there have been wellfounded fears of slowing growth in the pharma market. However, in our estimate, the impact may be much lower and perhaps also be slower in comparison to the well-known cyclicals due to the strength in the longer-term growth story and the structural underpinnings of the market that remain intact
  • Changing demographics (including populat ion growth) and rising disposable income due to which spend on healthcare is increasing
  • Early and improving diagnosis.
  • Scope to increase penetration in the country. Less than 40% of population is estimated to have access to modern medicines.
  • General increase in health awareness due to deep penetration of the electronic media.
  • Improving therapy/prescription compliance.
  • Improving health infrastructure with support from government's incentives.
According to ORG IMS, other trends which continue to be witnessed by the industry include:
  • Therapeutic profile of the Indian pharma market is changing from acute illnesses to chronic ailments. While prescriptions written by General Practitioners (GPs) are estimated to be growing at 2%, growth in specialist prescriptions is estimated at more than 5-6% p.a.
  • In order to gain penetration, companies are increasing their reach to Class II-VI towns and rural areas. However, access to the market (i.e. connectivity and infrastructure), limited availability of doctors and dispensaries, lack of awareness and low inclination to pay are key hurdles.
  • The hospital market is expected to become a meaningful opportunity. Pharma sales to hospitals are estimated to be at Rs. 25 billion. Currently, around 250 companies are participating in this market.
  • According to ORG IMS Research, long term prospects of India's domestic market remain solid with the USD 8 billion market in 2008, expected to rise to USD 30 billion in 2020, implying a CAGR of 11.6% .

NEW PRODUCT LIST (INDIA)

Brand Name

Use

Supatret Acne
Winolap Allergy/ rhinitis
Donamem Alzheimers'
Exmasin Anticancer
Lenzest Anticancer
Octride Depot 10 Anticancer
Carcidox Anticancer
Tyrogef Anticancer
Cernos depot Anticancer, hormone replacement
Milnorm Antidepressant
Levipil Antidepressant
Exzilor Antidepressant
Macorate Antiepileptic
Lobazam MD Antiepileptic
Oxetol XR Antiepileptic
Olmezest AM Antihypertensive
Prolomet R Antihypertensive
Olmezest H Antihypertensive
Nexipride inj Antipsychotic
Paliris ER Antipsychotic
Sofalco Antiulcer
Etirest Anxiolytic
AB phylline Asthma
Mondeslor Asthma
Tamlet Tamlet BPH
Camopan Chronic pancreatitis
Glytears Dry eye symptoms
Lesuride Gastric prokinetic
Brimosun LS Glaucoma
Rifagut Gut specific antibiotic
Inapure Herpes simplex
Suminat auto inj Migraine
Thioact Muscle relaxant
Miliflox plus Ocular Antiinfective + Antiinflamatory
Dronis Oral contraceptive
Lofecam Pain mgmt
VSL# 3 Caps Probiotic
Baclofen GRS Spasticity
Strocit CR Stroke/ Dementia
Vorizef Systemic antifungal
Vorizef injection Systemic antifungal
Darilong Urology, overactive bladder