The National Pharmaceutical Pricing Policy-2012 has been notified on 07.12.2012. The salient features of National Pharmaceutical Pricing Policy, 2012 (NPPP-2012) are as under:
· The regulation of prices of drugs is on the basis of essentiality of drugs as specified under National List of Essential Medicines (NLEM)-2011.
· The regulation of prices of drugs is on the basis of regulating the prices of formulations only.
· The regulation of prices of drugs is on the basis of fixing the ceiling price of formulations through Market Based Pricing (MBP).
Indian pharmaceuticals, a formula for success
India is the largest provider of generic medicines globally, with a 20% share in supplies by volume, the export of generic drugs is one of India's strengths. The Indian pharmaceutical industry handles 60,000 generic brands across 60 therapeutic categories and with a strong network of 10,500+ manufacturing units and 3,000 pharma companies, India achieved a pharma exports figure of USD 16.3 bn in the year 2015-16.
Indian vaccines are exported to150 countries and more than 500 different Active Pharmaceutical Ingredients (APIs) are manufactured in India. The cost of production in India is around two-thirds of that in the USA and almost half of that in Europe.
- Pharma exports recorded CAGR of 11.9% for decade ending 2015-16
- Third largest pharmaceuticals market by 2020 in terms of incremental growth
100% Foreign Direct Investment (FDI) is allowed under the automatic route for greenfield pharma
100% Foreign Direct Investment (FDI) is allowed in greenfield pharma and 74% FDI in brownfield pharma under automatic route, beyond 74% FDI is through government approval route
for more details refer FDI Policy 2017
- Largest vaccine producer in the world
- Bio-Pharma is the largest sector contributing to 62% of the total revenue.
- Fourth largest medical device market in Asia
India is emerging as a key market for Medical Devices and Diagnostics
Indian pharmaceutical sector accounts for about 2.4% of the global pharmaceutical industry in terms of value. The turnover of Indian pharmaceutical industry was estimated at USD 27.5 bn in FY 2015-16. The market is expected to expand at a CAGR of 12.8% over 2015–20 to reach USD 55 bn.
Generic drugs with 70% of market share form the largest segment of the Indian pharmaceutical sector. Over The Counter (OTC) medicines constitute around 21% of the market while patented drugs have a 9% share.
The Indian medical device market stood at USD 3.9 bn in 2015, accounting for approximately 1.7% of the global medical device market. The industry estimate suggests that the Indian medical device market will grow to USD 8.1 bn in 2020 at a CAGR of 16%. India is one of the top 20 global medical device markets, and the 4th largest medical device market in Asia.
- Global share in exports in generics medicines
- Overall contribution to Pharmaceutical exports
- Generic drugs revenue share in Indian pharma industry
- Patented drugs revenue share in Indian pharma industry
FDI inflows (in USD) in drugs & pharmaceuticals during April 2000 - September 2017
FDI allowed in greenfield pharma
FDI allowed for brownfield pharmaceuticals projects
November 2017 - Piramal Enterprises Ltd acquired a portfolio of spasticity and pain management drugs from UK-based specialty biopharmaceutical company Mallinckrodt Pharmaceuticals, in an all-cash deal for USD 171 mn.
October 2017 - Sun Pharmaceutical Industries Ltd, India's largest drugmaker, has entered into an agreement with Switzerland-based Novartis AG, to acquire the latter’s branded cancer drug Odomzo for around USD 175 mn.
January 2017 - Aurobindo Pharma has bought Portugal based Generis Farmaceutica SA, a generic drug company, for USD 144 mn.
November 2016 - Sun Pharmaceuticals Industries Limited plans to acquire 85.1% stake in Russian company Biosintez for USD 24 mn for increasing its presence in Russia through local manufacturing capability.