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Industry Overview

Global Pharmaceuticals Market

In 2007, the size of the global pharmaceutical market was US$ 959 bn. The market has since grown at a CAGR of nearly 30% during 2007-2012.

Global Pharmaceuticals Market 2007-12 Graph

Leading therapeutic segments in the Global Pharmaceutical Market

Oncologics and Analgesics were the top selling therapeutic classes in 2012.

Top ten therapeutic segments in the global audited pharmaceutical sales (2012)
Audited World Therapy Classes
2012 Sales (US $ bn)
% Growth
Oncologics
61.6
5.1
Pain
56.1
2.7
Antihypertensive
51.6
3.5
Antidiabetics
42.4
8.2
Mental Health
41.6
13.8
Respiratory Agents
39.7
1.4
Antibacterials
38.8
3.7
Lipid regulators
33.6
14.2
Autoimmune Diseases
27.8
15.1
Anti-Ulcerants
26.0
2.4

Indian Pharmaceutical Industry

  • Indian pharmaceutical market is among the top five emerging pharmaceutical markets in the world
  • According to McKinsey & Company report (“India Pharma 2015”), the following trends influence the growth of the Indian pharmaceuticals market:
    • Doubling of disposable incomes and the number of middle-class households
    • Expansion of medical infrastructure
    • Greater penetration of health insurance
    • Rising prevalence of chronic diseases
    • Adoption of product patents
    • Aggressive market penetration driven by the relatively smaller companies
  • The revenue CAGR from 2009-2012 has been 12.4%, and is expected to increase to 14-17% between 2012-2016
  • This growth is expected to be due to new product launches and favorable pricing environment
  • Increasing sales of generic medicines, continuing growth of chronic therapies, and greater penetration in rural markets also contribute to the increase in revenue sales
  • Indian pharma companies have taken advantage of the generics expiries and the increasing demand for low-cost drugs, which has been conducive for the growth in the industry
  • 4-5 Indian companies are listed in the top 20 generics in 2011 (IMS data)
Top 14 Pharmaceuticals Markets 2014 Graph

Business Strategies followed by Indian Pharmaceutical Companies

Business Strategies followed by Indian Pharmaceutical Companies

Domestic Market

  • Indian domestic pharmaceutical retail market registered a growth rate of 15% in 2011, with annual sales of US$ 10.8 bn
  • The Indian pharmaceutical market ranks 14th in the world in terms of volume
  • The market size is expected to grow to about US$ 35.9 bn by 2016
Market Share of Key Therapeutic Classes in the Domestic Market (2009)
Therapeutic Class
% Market Share
Anti-infectives
18
Gastro Intestinal
11
Cardiovascular
10
Respiratory
9
Vitamins/Minerals
9
Analgesics
9
Gynae
5
CNS
5
Dermatology
5
Anti-Diabetic
4
Others
13

Exports

  • The pharmaceutical exports increased from US$ 13.2 bn in 2011-12 to US$ 14.6 bn in 2012-13
  • By 2016, the estimated value of Indian pharma exports is going to be US$ 25 bn
  • The Indian pharma companies are expected to focus on the US generics market for the next two years

Generics Market

  • Generics dominate the market, and this trend is expected to continue, with patent-protected products expected to constitute 10% of the total share until 2015 (McKinsey report - India Pharma 2015)
  • Global demand for Indian generics is increasing due to rise in healthcare costs in developed countries
  • Indian generics companies are set to focus on under-penetrated markets like France, Italy and Spain and branded generic markets in East Europe, including complex generics, OTCs, etc.

Research & Development

Company
Overview of R&D programme
Dr. Reddy's Labs
2 NCEs in Phase II and another 4 NCEs in Phase I along with a significant number of pre-clinical candidates. Also partnering with innovative companies on specialty drugs; has a very strong biogenerics programme
Sun Pharma
One NCE in Phase II trials in USA;
Also focused on 3 other NCE projects and 4 very promising NDDS platforms
Ranbaxy
Has out-licensed a novel statin to PPD
Has 1 Malaria NCE in Phase II
Biocon
Conducting clinical trials on Oral Insulin and Monoclonal Antibody for inflammation Has launched another Monoclonal Antibody for head and neck cancer
NPIL
Has 1 oncology NCE in Phase II and plans to have 7-8 NCEs in clinical trials over the next few quarters
Lupin
Conducting phase II trials on the anti-psoriasis NCE
Glenmark
Has out-licensed 2 of its NCEs, and 1 NBE to global pharma companies