Indian Pharma Industry in 2020_An essay by Anisha Merin Varghese

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ndia is the third-largest global generic Active Pharmaceutical Ingredient (API) manufacturer in terms of both market share and generic drugs which form the largest segment of the Indian pharmaceutical sector  and by 2020 India is likely to top the first three [pharmaceutical market b incremental growth.  India is the largest contributor of generic medicines globally by quantity and when it comes in the price sector too. Current projections show that as India continues to develop this segment and the growth will expand in the coming years. India accounts for the second largest number of Abbreviated New Drug Applications (ANDAs) and is the world's leader in Drug Master Files (DMFs) applications with the US. Due to these reasons, the pharma industry can definitely reach the country’s goal. The pharmaceutical sector industry has an overall 24,000 pharmaceutical companies, 250 of which are in the organized category, supplying over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.

India’s pharmaceutical industry has grown by leaps and bounds in the last three decades and has created an important position in the global sector and as a result, it has emerged as world’s third largest producer of drugs in terms of volume. The industry has posted double-digit growth over the last few years, intensifying to US $36.7 Billion in 2017 and projected to grow to US $55 Billion by 2020, from US $20 billion in 2015.It is quite enriching to note that the pharma segment is out-performing most other sectors in achieving constantly high growth. India is now among the top five pharmaceutical emerging markets of the world. And this is possible only through the works of the engineers and scientists. Presently over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms. As mentioned, these 250 organized companies control nearly 70 percent of the market. About 8,000 small-scale units together form the core of the pharmaceutical industry in India, including five Central Public Sector Units. Since many of the highly profitable drugs shall be going off patent in the coming years, this will benefit the companies in India who can now manufacture these drugs and enable them to capture more revenues. They will be generating profits to become innovative companies which will enable them to evolve out of generic manufacturing to grow, develop and market their own pharmaceuticals through robust R&D which will allow them to expand globally.

To fully make the transition from a local generics drugs provider to become global quality standard, manufacturers must look at different business models whilst at the same time considering the increasingly complex regulatory environment. Partnering with experts in all scientific, technical and especially regulatory fields can reduce overheads and ensure the best guidance on approaches to maximize on the investment made. India’s exports of generic drugs have also been growing at a very remarkable rate of 24% per year for the last four years. In 2012-13, India’s pharmaceutical exports stood at $14.7 billion. More than half of it went to highly-regulated western markets. This speaks volumes about the efficiency of the Indian pharma sector in terms of quality and pricing. India’s second largest export market is Africa, followed by Europe, with a growing focus on markets such as Latin America, Australia, and Japan. The Supply Annual Report of UNICEF has recognized India as the world’s largest supplier of generics. In developing countries, it is rendering service by facilitating affordable access of poor patients to life-saving medicines. Due to the ability of the Indian pharma companies to produce drugs at economical rates, the cost of HIV/AIDS treatment has gone down to $400 per year from $12,000 – a spectacular contribution to global healthcare.

However, India’s rise as a pharma hub has created a counterattack. The western drug companies, whose market share India has eaten into, are up in arms against Indian pharmaceutical companies. The western interests have targeted the particular Indian companies that have spearheaded the country’s export efforts. One allegation that the western companies and their governments have made against India is over infringement of Intellectual Property Rights (IPRs). The American companies seethe in anger on seeing India producing and selling critical life-saving medicines at rates well below their selling price.

Union Minister of Commerce and Industry of India, Suresh Prabhu, recently stated that India is recognized globally as one of the key players in the field of generic medicines. India is the best destination for research in genomics and their application. And a balance is to create between the growth of the pharma sector and protection of consumer interests. There are great opportunities in African and Latin American countries for the Indian pharmaceutical industry and India has the potential to become a place for holistic solutions in the healthcare sector. The pharma industry will play a key role in driving India to become a 5 trillion dollar economy.