Branded generics
Occupies 70%-80% share of the retail market
Snapshot
Indian pharmaceuticals- a formula for success
India is the largest provider of generic medicines globally, occupying a 20% share in global supplies by volume. The country is home to 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. The cost of production in India is around one-third of that in the US and almost half of that in Europe.
India is the source of 60,000 generic brands across 60 therapeutic categories and manufactures more than 500 different Active Pharmaceutical Ingredients (APIs). The export of generic drugs is one of India's core strengths. The export of Pharmaceuticals stood at $ 16.3 bn in 2015-16.
- Pharma exports recorded CAGR of 11.9% for a 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% FDI is allowed in brownfield pharma; wherein 74% is allowed under the automatic route and thereafter through government approval route
For further details, please refer FDI Policy
20 %
Generics medicines exports share (global)
11.9 %
Contribution in overall exports
70 %
Generic drugs revenue share
21 %
Patented drugs revenue share
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
The Pharmaceutical industry in India accounts for about 2.4% of the global Pharmaceutical industry in value terms. The turnover of the sector was estimated at $ 27.5 bn in 2015-16. The market is expected to expand at a CAGR of 12.8% over 2015–20 to reach $ 55 bn.
Generic drugs with 70% market share form the largest segment of the Pharmaceutical industry in India. Over-the-counter (OTC) medicines constitute around 21% of the market while patented drugs have a 9% share.
The Medical device market in India which was valued at $ 3.9 bn in 2015, accounted for approximately 1.7% of the global medical device market. The industry estimate suggests that the Medical device market in India will grow at a CAGR of 16% to reach $ 8.1 bn in 2020. India is currently among the top 20 global Medical device markets and the 4th largest medical device market in Asia.
Growth Drivers
Innovation and R&D
To develop new complex generic drugsMedical tourism
Quality services at marginal costs compared to US, Europe, and South AsiaInfrastructure development
6 pharma and 2 medical devices parks in the pipelineNew IPR policy
Increased control over patent infringementStrong drug manufacturing
Expertise in low cost generic patented drugs
Recent Announcements
Online pharmacy Medlife has acquired Bengaluru based medicine delivery startup Myra. Medlife will use the delivery segment to expand its services to 22 cities.
Active pharmaceutical ingredients (APIs) and drug intermediates maker Divis Laboratories Limited is creating additional capacities by spending as much as INR 15 bn at its existing facilities in the next 15 months
Swiss pharma giant Ferring Pharmaceuticals will be investing $ 250 mn in setting up a manufacturing facility and R&D center in the city’s life sciences hub of Genome Valley.
Tyumen has joined a growing list of Russian regions keen on playing host to pharmaceutical ventures of Indian firms, a move that comes in the backdrop of Russia’s emphasis on building self-reliance in drug production.
Neuberg Diagnostics, an alliance of five leading pathology laboratories from India, South Africa, and the UAE, is planning to invest $ 43.7 mn in India, the Middle East, and Africa as part of its expansion plans.
Pharmaceuticals ingredients
India is the 3rd largest market for APIs globally
Formulations industry
Largest formulations exporter experiencing double-digit growth
Contract research and manufacturing services industry
Valued at $ 8 bn in 2015
Rapidly growing healthcare industry
BP monitors, cardiovascular lab, portable anesthesia machine
Investible Projects
Investment Opportunities in Pharmaceuticals
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Projects
20
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Opportunity
$276.8 mn
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Promoters
20
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District
12
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Private Projects
19
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Govt. Projects
1
Major Investors
Data on Map
FAQ
Frequently
Asked Questions
What is Bureau of Pharma Public Sector Undertakings of India (BPPI)?
BPPI (Bureau of Pharma Public Sector Undertakings of India) has been established under the Department of Pharmaceuticals, Govt. of India, with the support of all the CPSUs for co-coordinating procurement, supply and marketing of generic drugs through Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK).
What is Pradhan Mantri Bhartiya Janaushadhi Pariyojana?
'Pradhan Mantri Bhartiya Janaushadhi Pariyojana’ is a campaign launched by the Department of Pharmaceuticals, Govt. Of India, to provide quality medicines at affordable prices to the masses through special kendra’s known as Pradhan Mantri Bhartiya Jan Aushadhi Kendra. Pradhan Mantri Bhartiya Jan Aushadhi Kendra (PMBJK) have been set up to provide generic drugs, which are available at lesser prices but are equivalent in quality and efficacy as expensive branded drugs.
What is the difference between terms like API, Bulk drugs, Intermediates, Finished Dosage, and Formulations that are common jargons in the Pharmaceutical Industry?
The definitions are:
1) API – Active Pharmaceutical Ingredient – is the basic drug itself with the desired medicinal (pharmaceutical) properties. Also referred to as Bulk Drugs.
2) Intermediates – Most chemical reactions are stepwise, that is they take more than one elementary step to complete. An API is a result of a complex chain of chemical reactions in several steps. Intermediates are stable forms a few steps away from the final API e.g. API -3, or API-5.
3) Finished Dosage or Formulation – is the form in which the drug is consumed by us. A dosage form of a drug is usually composed of two things: The API, which is the drug itself; and an excipient, which is the substance of the tablet, or the liquid the API is suspended in, with other masking, stabilising and binding agents/material that is pharmaceutically inert.
APIs are supplied by Pharmaceutical manufacturers to Formulations players or for own consumption for in-house Formulations. Intermediates are supplied to API manufacturers for reducing time-to-market."
What is a Generic Medicine?
Generic medicines are unbranded medicines which are equally safe and having the same efficacy as that of branded medicines in terms of their therapeutic value. The prices of generic medicines are much cheaper than their branded equivalent.
What are the skill development measures undertaken in this sector?
To keep pace with the growing demand for highly skilled R&D professionals the government has undertaken the transformation of National Institutes of Pharmaceutical Education and Research (NIPERs). As a preliminary step, 11 NIPERs have been transformed as innovation hubs.
