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Pharmaceuticals

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Pharmaceuticals

May, 2011

India’s pharmaceutical industry is the third largest in the world in terms of volume and stands 14th in terms of value. The domestic pharma sector continued its strong show in 2010 and recorded a 16.5 per cent growth during January-December. India will join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching USD 50 billion by then, according to a report by PricewaterhouseCoopers (PwC). The pharmaceutical industry of India also ranks very high in terms of technology, quality and range of medicines manufactured. The pharmaceutical industry in India also fulfills around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles.

Sector Structure/Market size

India’s pharmaceutical industry is the third largest in the world in terms of volume and stands 14th in terms of value.

The domestic pharma sector continued its strong show in 2010 and recorded a 16.5 per cent growth during January-December.

The Indian pharmaceutical industry forms around 8 per cent of world pharmaceutical production. The trend of Indian companies being increasingly targetted by multinationals (MNCs) for both collaborative agreements and acquisitions has been picking up over a couple of years.

The Indian Pharmaceutical market is poised to grow to US$ 55 billion by 2020 from the 2009 levels of US$ 12.6 billion, as per a report by McKinsey & Company - India Pharma 2020: Propelling access and acceptance realising true potential. The industry further holds potential to reach US$ 70 billion, at a compound annual growth rate (CAGR) of 17 per cent.

Exports

India's exports in drugs, pharmaceuticals and fine chemicals in November 2010 was recorded at US$ 763.62 million, with a growth rate of 9 per cent as compared to the same period in 2009, according to DGCIS, Pharmexcil Research data.

Growth

The Indian pharma companies on back of a strong and growing domestic market, robust pipeline of generic drugs (cheaper versions of patented drugs) and an ability to service, developed markets abroad, has invariably become the most sought-after in the mergers and acquisitions (M&A) space

Indian pharmaceutical market is predicted to grow to US$ 55 billion by 2020 from US$ 12.6 billion in 2009, as per a McKinsey report

In addition, India will join the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with the total value reaching US$ 50 billion, according to a report by PricewaterhouseCoopers (PwC).

Benefitting from a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights, India pharma industry is estimated to grow manifolds.

The Indian pharmaceutical sector has registered an outstanding growth during the last few years and has become the hub of pharmaceutical companies owing to low cost manufacturing, large population, and high demand, as per new research report “Global Contract Manufacturing Market Analysis.