The Indian pharmaceutical market is expected to touch US$ 74 billion sale

2020
The Indian pharmaceutical market is expected to touch US$ 74 billion sales by 2020

The Indian pharmaceutical market is expected to touch US$ 74 billion sales by 2020 from US$ 11 billion now, according to a PricewaterhouseCooper
report. India's pharmaceutical market grew at 15.7 per cent during December 2011, with growth in key therapy areas, including anti-diabetics, derma
outperformed the market, according to data compiled by market research firm All India Organisation of Chemists and Druggists (AIOCD).
India has every chance to capitalise the opportunity to become a pharmaceutical Superpower in 2020 and a hub for all pharmaceutical manufacturing
needs, according to Subodh Priolkar, President, 63rd IPC, and regional Managing Director, Colorcon Asia.

The growth of the Indian over-the-counter or OTC market (that is advertised non-prescription medicines) has outperformed globally. It has been obse

global OTC market over the past eight years has grown rapidly and is expected to continue. Globally, the Indian pharmaceutical industry ranks third i
volume and 14th in terms of value. Currently, India ranks 11th in terms of the OTC market size globally.

As of now, the Indian OTC market is estimated to be worth $1,793 million with an annual growth rate of 23%. As per industry research, the Indian ph
industry was estimated to be $19 billion in FY09.
It is expected to grow at a CAGR of approximately 18% till 2013- 14. The Indian pharma industry has emerged as one of the most attractive markets
its growth continues to outperform the growth of the global industry and particularly markets such as USA and European Union (EU).

However, this is especially important for the Indian pharma market, which is a branded generics market and reportedly has over 70,000 bra

competing for the customers wallet. It is important to build an emotional bonding and a relationship of trust and comfort with the customer to ensu

and hence consistent sales. There is a need to differentiate a product from competition and establish a positive image of the drug and the company in t
the customer. Therefore, companies are spending more money and effort on brand building.

Fitch Ratings' outlook on the Indian pharmaceutical sector for 2012 or the financial year to end-March 2013 (FY13) is stable. The agency expects cre
to remain stable, should long-term earnings and profitability prospects remain intact with moderate capex.

"Aggregate disclosed value of merger & acquisitions (M&A) deals in the pharmaceuticals sector surged from a meagre US$ 1.2 billion in FY10 to US
in FY11, reflecting a jump of more than 230 per cent," as per an Ernst & Young (E&Y) report. M&A has emerged as one of the key strategies in the l
three years to gain a foothold in emerging markets with several big ticket acquisitions, the report added.

Domestic pharmaceutical retail market clocked a robust 15 per cent growth during 2011, mainly driven by therapies like anti-diabetic, vitamin, anti-in
dermatology. The domestic pharmaceutical retail reached a new milestone by recording overall sales of Rs 60,000 crore (US$ 12.20 billion) for the ye

The Ministry of Commerce has proposed an ambitious Strategy Plan to double pharmaceutical exports from US$ 10.4 billion in 2009-10 to US$ 25 b
2013-14. The Government has also planned a 'Pharma India' brand promotion action plan spanning over a three-year period to give an impetus to gen

The drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 5.03 billion between April 2000 and November 2011, acc
latest data published by Department of Industrial Policy and Promotion (DIPP).

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 McKinsey & Comp
titled "India Pharma 2020: Propelling access and acceptance realising true potential". The industry further holds potential to reach US$ 70 billion, at a
annual growth rate (CAGR) of 17 per cent.

Generics will continue to dominate the market while patent-protected products are likely to constitute 10 per cent of the pie till 2015, according to Mc

report 'India Pharma 2015 - Unlocking the potential of Indian Pharmaceuticals market'.

On back of a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights, the Indi
industry is estimated to grow manifolds.

With the focus of companies shifting to smaller deals catering to niche segments and markets, partnerships seems to be the new norm in the pharmace
sector. The strategic execution of maximising on the available resources both human and financial will be the way forward for clinical and contract re
building capabilities through strategic partnerships, stated Dr Abhijeeth Chandrasekaran, Clinical Scientist, RxMD.

Interestingly, the international drug-makers have introduced generic or low-priced version of popular medicines and have also decreased prices of the
products - in order to increase their share in the globally important market - India. The Indian-makers business model is built around selling large volu
cheap generic medicines at lower margins in the country, to add to twin purpose of affordability and popularity.