Pharma

Pharma

WHY INDIA?

Congregative settlement tendencies of pharmaceutical units have led to the evolution of defined manufacturing and R&D clusters in the country.

Congregative settlement tendencies of pharmaceutical units have led to the evolution of defined manufacturing and R&D clusters in the country.

The country has over 450 institutes/colleges and departments imparting pharmacy education. More than 25,000 pharmacy graduates pass out from these institutes every year.

India’s cost competitiveness is the key reason why MNCs prefer to outsource R&D and manufacturing activities. India offers a 50-55 per cent savings in production cost of basic pharmaceuticals, compared to the US.

The Indian pharmaceutical industry ranks 17th with respect to exports value of bulk actives and dosage.
Exports constitute nearly 40 per cent of the production, with formulations contributing 55 per cent and bulk drugs 45 per cent.
The industry comprises large, medium and small-scale operators out of which some 300 companies’ together account for nearly 90 per cent of the domestic market, while the rest is accounted for by a large number of small companies which total about 9000 units.
The country exported drugs worth US$ 7.2 billion in 2007-08 and the US and Europe was the biggest export destinations for Indian generic manufacturers, followed by emerging markets like Central and Eastern Europe, Latin America and Africa.
The industry has been clocking export growth rate, recording 18 per cent, 23 per cent and 17 per cent growth rates during 2006-07, 2005-06, and 2004-05, respectively.
It is expected that the Indian pharmaceutical exports will grow at a compound annual growth rate (CAGR) of 18.5 per cent between 2007-08 and 2011-12. This growth will be in fuelled by multi-billion dollar patent expirations and growth in the global generics market.

The industry’s growth rate is likely to touch 19 per cent from the current 13 per cent, according to a projection released by the Confederation of Indian Industries (CII).
According to a McKinsey study, the Indian pharmaceutical industry is projected to grow to US $ 25 billion by 2010 whereas the domestic market is likely to more than triple to US$ 20 billion by 2015 from the current US$ 6 billion to become one of the leading pharmaceutical markets in the next decade.