The Department of Pharmaceuticals has announced the scheme for cluster development programme for pharma sector in July 2014 to enhance, quality, productivity and innovative capabilities of the SME pharma sector in the country.
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
HIGHLIGHTS
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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
Industry Scenario
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.
Growth Drivers
- Global share in exports in generics medicines
20%
- Overall contribution to Pharmaceutical exports
11.9%
- Generic drugs revenue share in Indian pharma industry
70%
- Patented drugs revenue share in Indian pharma industry
21%
Key policies
Industry Trends
FDI Facts
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FDI inflows (in USD) in drugs & pharmaceuticals during April 2000 - December 2017
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FDI allowed in greenfield pharma
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FDI allowed for brownfield pharmaceuticals projects
Recent Investments
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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.
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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.
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January 2017 - Aurobindo Pharma has bought Portugal based Generis Farmaceutica SA, a generic drug company, for USD 144 mn.
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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.
Major Investors
Key Institutional Stakeholders
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