India’s booming domestic pharma market expands 18%

INDIA – India’s domestic pharma market has registered a robust growth of nearly 18 percent. The country was hit by a devastating second wave of the COVID-19 pandemic and moved swiftly to vaccinate a majority of its population.

According to India Ratings and Research (Ind-Ra), the 18 percent year-on-year revenue growth in India’s pharmaceutical market (IPM) in August was driven by improved sales in the non-covid product portfolio, while sales traction in the covid products remained stable.

The COVID-19 influence portfolio contributed 37 percent to IPM for July 2021 moving annual total (MAT).

Acute therapies, such as anti-infectives, gastro-intestinal, respiratory, and pain/analgesics, have continued to snowball, aided by the low base impact.

Sales volumes increased 9.0 percent year on year in August 2021 (4.5 percent year on year in July 2021), while price growth was 5.9 percent (5.7 percent) and new product launches were 2.9 percent (3.5 percent) driven by acute therapy products.

In contrast, chronic therapies rose about 12.5 percent year-on-year, Ind-Ra said. Simultaneously, the acute therapy segment experienced negative growth due to Covid, whereas the chronic therapy segment experienced an average growth of 7.0 percent over the same period.

The Indian pharmaceutical industry has been rapidly expanding, putting it at a prime pole to compete with other global pharmaceutical giants. The Indian pharmaceutical market value growth has more than doubled, peaking at US $40 billion in 2021, up from US $18.12 billion at the end of 2018.

With rising export share, CARE Ratings expects India’s pharma industry to grow at an 11 percent annual rate over the next two years, reaching a value of more than $60 billion.

This market will be comparable to all developed markets except the United States, Japan, and China at the projected scale.

The global pharmaceutical manufacturing market is expected to grow at a compound annual growth rate of 11.34 percent from 2021 to 2028 to reach US$ 957.59 billion by 2028 according to grandviewresearch.com.

Its level of penetration will be even more impressive. In terms of volume, India will be at the top, trailing only the US market. This combination of value and volume offers intriguing possibilities for improving therapy and treatment levels, according to a statement by Dan Flicos, the CEO of Team Consulting Limited.

The majority of pharmaceutical manufacturing in India in 2021 are generic drugs, which are less expensive than prescription or patented drugs.

Branded generics are estimated to account for 90% of the domestic Indian market, with brand equity playing a significant role in market share and pricing. As a result, a strong brand can still maintain a reasonable market share and premium pricing.

More partnerships and mergers between multinationals and domestic firms occur, and Indian companies are well-positioned to exploit the domestic market in their own right or in collaboration with partners.

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