Indian Pharmaceutical MarketOverview – 2013Mr. Nitesh Bhele, Mumbai
IndexMain Highlights of Indian EconomyHighlights of Indian Pharma IndustryIndian pharmaceutical market segments by value (2010)Market share by value in Asia-Pacific (2010)USFDA-approved facilities in IndiaInvestment, M&A and JVsShare of patented and generic drugs in overall market (USD billion)IndiaGovernment Spending & InitiativesGlobal Pipeline For Patented ProductsTotal Unaudited and Audited Global Pharmaceutical Market, 2003 –2011 Total Unaudited and Audited Global Pharmaceutical Market By RegionTop 20 Global Companies 2012Top 20 Therapeutic Classes 2012Top 20 Global Products 2012Newer technologies used in pharmaceutical sales and marketing
Main Highlights of Indian Economy• Indian Economy grew at 5.0 % in 2012-13 and is expected to grow at 6.1-6.7 % in next fiscal year.• Overall industrial performance, as reflected by the index of industrialproduction (IIP) showcased growth of 2.1 % in Q3 of 2012-13• WPI inflation to decline to 6.2-6.6 % in March 2013• Cumulative exports recorded during 2012-13 (April-December) stood at Rs1,166,439 crore (US$ 217.09 billion), registering a growth of 9.4 %.• Imports in 2012-13 (April-December) at Rs 1,967,522 crore (US$ 366.20billion) registered a growth of 29.4 %• Foreign exchange (Forex) reserves stood at US$ 295.6 billion at endDecember 2012Source: Economic Survey of India 2012-13, IBEF
Highlights of Indian Pharma Industry• Fragmented market with more than 1000 players & 60000 brands.• Domestic market size is currently valued at about USD10 billion;the segment is set for double-digit growth over the next five years.• From USD200 million in 2008, revenues are set to jump toUSD550-600 million by 2012-13.• USD8.7 billion export market as of 2010.• The government plans to allocate USD70 million for local players todevelop biosimilars.• There are more than 350 manufacturing sites endorsed by EU fortheir GMP in India on Apr 30, 2013.• Positioned as low cost life saving generic drug industry.
• The OTC market is forecasted to be worth USD6.6 billion by 2016• The Indian pharmaceuticals industry sales stood at USD15.6 billionduring 2011.It is forecasted to double in five years, reachingUSD35.9 billion by 2016.• The Indian pharmaceuticals industry exports from India areforecasted to increase more than two folds over the next five years.The trade surplus in the pharma sector is likely to expand toUSD16.5 billion by 2016Source:BMI, Datamonitor, Various industryestimates, Aranca Research
Indian pharmaceutical market segmentsby value (2010)Source:Datamonitor, Aranca Research
Market share by value in Asia-Pacific (2010)Japan accounts for over 50 % ofpharmaceutical sales in Asia-Pacific, followed by China whichis a distant second with 19 %,while India, with a little over 10% market share, ranks third bymarket size.Source:Datamonitor, Aranca Research
USFDA-approved facilities in IndiaIndia has over 120USFDA-approved and84 UK MHRA -approvedmanufacturingfacilities. Thesefacilities significantlysupport the companiesinvolved in CRAMS.Source:BMI, Aranca Research
Share of patented and generic drugs inoverall market (USD billion) IndiaThe share ofgeneric drugs isexpected tocontinue toincrease; it couldrepresent about 90per cent of theprescription drugmarket by 2016.Source:BMI, Aranca Research
Government Spending & Initiatives• Government spending on healthcare expanded at a CAGR of 18 %during 2005-09.• Increased government expenditure on healthcare could create anover USD4.5 billion market for pharmaceuticals in the next fewyears.• Penetration of health insurance is expected to more than double by2020 .• Increasing penetration of health insurance is likely to be driven bygovernment-sponsored initiatives such as RSBY and ESIC.
Global Pipeline For PatentedProducts*Excluding preclinicalSource: Pharmaproject, Mckinsey analysis.
Total Unaudited and Audited GlobalPharmaceutical Market, 2003 – 2011Source: IMS Health Market Prognosis, May 2012
Total Unaudited and Audited GlobalPharmaceutical Market By RegionSource: IMS Health Market Prognosis, May 2012
Top 20 Global Companies 2012Source: IMS Health, IMS MIDAS, December 2012
Top 20 Therapeutic Classes 2012Source: IMS Health, IMS MIDAS, December 2012
Top 20 Global Products 2012Source: IMS Health, IMS MIDAS, December 2012
Newer technologies used in pharmaceuticalsales and marketing
Glossary• CRAMS: Contract Research and Manufacturing Services• API: Active Pharmaceutical Ingredients• FDI: Foreign Direct Investment• INR: Indian Rupee• USD: US Dollar• RSBY: Rashtriya Swastha Bima Yojna• ESIC: Employees State Insurance Corporation