INDIA-OPPORTUNITIES | Knowing India: Sectors

Pharmaceuticals

Between 2011 and 2016, patent drugs worth USD 255 Billion are estimated to go off-patent leading to a huge surge in generic product and tremendous opportunities for companies.
By 2020, it will grow to USD 11 billion - a CAGR of 18%, with the potential to reach USD 13 billion - at an aggresive CAGR of 20%.
With increasing penetration of chemists, especially in rural India, OTC drugs will be readily available.
Pharma companies have increased spending to tap rural markets and develop better infrastructure. The market share of hospitals is expected to increase from 13.1% in 2009 to 26% in 2020.
Following the introduction of product patents, several multinational companies are expected to launch patented drugs in India.
The purported rise of lifestyle diseases in India is expected to boost industry sales figures.
Over USD 200 Billion is to be spent on medical infrastructure in the next decade.
Rising levels of education are set to increase the acceptability of pharmaceuticals.
Indiaâs patient pool is expected to increase to over 20% in the next 10 years, mainly due to the rise in population.

India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.
India will become the sixth largest market globally in terms of absolute size by zero.
Indiaâs generic drugs account for 20% of global exports in terms of volume, making the country the largest provider of generic medicines globally.
Indiaâs cost of production is significantly lower than that of the USA and almost half of that of Europe.
A skilled workforce as well as high managerial and technical competence.
Economic prosperity is likely to improve affordability for generic drugs in the market.
Approval time for new facilities has been drastically reduced.