Indian Pharmaceutical Sector - Shifting from a defensive to a growth sector
The Pharmaceutical sector in India is highly fragmented with more than 10,000 listed and unlisted companies. India is one of the fastest-growing pharmaceutical markets in the world, and its market size has nearly doubled since 2005. The total turnover of the Indian Pharma sector is estimated to be close to US$ 21 bn of which around US$ 9 bn comes from exports while the rest comes from domestic sales. US is the topmost destination for Indian Pharma exports followed by Russia, Germany and Austria.
What are the growth drivers of the Pharma sector? Here's the analysis...
Increasing incomes & healthcare spends to spur domestic growth
Significant patent expiries in developed markets present good growth opportunities for Indian generic companies:
Emerging markets to become the next destinations for pharma companies
M&A a potential catalyst
Biosimilars - potentially a big long-term driver
So, is there anything to be concerned about?
Product pipeline drying up
Patent expiries could cannibalise other generic molecules in India