The Indian pharmaceutical industry today occupies a unique and fast expanding space in the global market not only as a manufacturer of generic drugs but also of new formulations, with growing emphasis on research and development (R&D) and new drug discovery, says a study by the Export Import Bank of India.
With annual turnover of over US $11 billion, the Indian pharmaceutical industry is globally ranked 4th, in terms of volume, with a share of 8.0 percent in the world pharmaceutical market.
The global pharmaceutical market is characterized by greater levels of R&D expenditure and extensive regulation of its products. Although the developed countries dominate the global pharmaceutical market, the share of developing countries like India, China and Mexico has been increasing in recent years.
The study, analyzing the evolution of Indian pharmaceutical industry, has observed that the transition period, provided under the TRIPS agreement of WTO, has been utilized effectively by Indian firms to undertake activities such as clinical research, new drug development and patent filing.
New countries, such as Brazil, South Africa, Turkey and Ukraine, have emerged as important destinations for India. For many countries in Africa and South Asia, India is one of the principal source countries for pharmaceutical imports. However, India's share in pharmaceutical imports of developed country markets (such as USA, EU and Japan) is still low, though they are India's largest export destinations.
Increasing R&D activities, Filing of Drug Master Files (DMF) and Abbreviated New Drug Applications (ANDA) with US-FDA; leveraging bio-technology; specializing in contract research, contract manufacturing and co-marketing alliances; diversification of markets; and inorganic growth through mergers and acquisitions are some of the success strategies adopted by the Indian pharmaceutical industry. However, there are also challenges, which need to be addressed by the Indian pharmaceutical industry.
Given the expertise and experience, Indian pharmaceutical industry should be in a position to garner a significant share in the world market. Some of the strategies prescribed by the study include strengthening R&D activities, market penetration in Least Developed Countries (LDCs) through acquisitions, stepping up of bio-pharma convergence, addressing safety and quality issues, emphasis on patent filings, skill development and tackling of patent infringement cases.
For further information please contact:
Chief Knowledge Officer, Export-Import Bank of India
Centre One Building, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400005
Tel: + 91 22 22182837; Fax: + 91 22 22183070