Introduction to indian pharma industries

Introduction to
Indian Pharma
Industries
PharmaCampus- All Rights reserved

1. Leading
Pharma
Producer

Leading Pharma
Producer
• In the vaccines segment 50% of the
global demand is supplied by Indian
Pharmaceutical industries.
• In the US 40% of the generic demand is
met by Indian drugs.
• In the UK, India contributes to 25% of all
medicines.

2. One of the
Highest Export

• India accounts for 20 percent of global exports
in generics.
• India’s pharmaceutical exports stood at US$
17.27 billion in FY18.
• Indian Medicines Exports are expected to
reach US$ 20 billion by 2020.
Highest Export

3. Among
fastest growing
Industry

Indian Pharmaceutical Sector
• Is expected to grow at a CAGR OF 15 percent.
• medical device expected to grow $50 billion by 2025.
• India in the second largest contributor of global biotech
and pharmaceutical workforce.

4. Rapidly growing
Healthcare Sector

• India healthcare sector is one of the fastest
growing sector.
• It is expected to cross US$ 372 billion by 2022.
Growth Parameters

5. High
Potential
Generics
Market

High Potential
Generics Market
• The domestic generics market is expected
to reach US$ 27.9 billion by 2020.
•
• Indian pharmaceutical companies received
record 300 generic drug approvals in USA
during 2017.

6. Robust
growth in
Biotech
Industry

By 2024-25, India’s biotech
industry is estimated to increase
to US$ 100 billion.
Growth in Biotech Industry

Advantage India: Cost
Efficiency
• Low cost of production and R&D boosts
efficiency of Indian Pharma companies
, leading to competitive exports.
• Indian pharma exports reached US$
13.95 billion in FY19.
• Indian cost of production is
approximately 33 percent lower than
that of US.

Advantage India: Economic drivers
• Economic prosperity to improve drug affordability.
• Increasing penetration of health insurance to drive
expenditure on medicine.
• With increasing penetration of pharmacies, especially in
rural India, OTC drugs will be readily available.

Advantage India:
Policy support
• Pharma vision 2020 aimed at making
India a global leader in end-to-end drug
manufacturing.
• Under budget 2019-18 allocation to the
ministry of Health and Family welfare
increased by 13.1% to Rs. 61398
crore.(US$ 8.98 billion.)

Advantage India:
Increasing Investments
• In FY18, Indian pharma companies
invested 8.8 percent of their sales in
R&D.
• Between 2008-18, the S&P BSE
Healthcare Index has grown at 16.72
percent.

• Under budget 2019-18
allocation to the ministry of
Health and Family welfare
increased by 13.1% to Rs.
61398 crore.(US$ 8.98 billion.)
• Between 2008-18, the S&P BSE
Healthcare Index has grown at
16.72 percent.
• Economic prosperity to
improve drug affordability.
• Increasing penetration of
health insurance to drive
expenditure on medicine.
• With increasing penetration
of pharmacies, especially in
rural India, OTC drugs will be
readily available.
• Low cost of production and
R&D boosts efficiency of
Indian Pharma companies ,
leading to competitive exports.
Indian pharma exports
reached US$ 13.95 billion in
FY19.
• Indian cost of production is
approximately 33 percent
lower than that of US.
ADVANTAGE
INDIA
• In FY18, Indian pharma
companies invested 8.8
percent of their sales in
R&D.
Pharma vision 2020 aimed at
making India a global leader in
end-to-end drug
manufacturing.

Market
Overview

Pharmaceuticals
Active pharmaceutical
ingredients/Bulk drugs
Branded Generics
Formulations
Branded Generics
• Cardiovascular
• Anti-Diabetes
• Gastro-Intestinal
• Neurological
• Anti-infectives
• Respiratory
• Pain
• Gynecology

1990 -
2010 2010 -
2015
2010
2016
onwards
1970 -
90
• Liberalized market
• India a major destination for generic drug
manufacturing
• Approval of Patents (Amendment) Act
2005, which led to adoption of product
patents in India
• 2013: New Drug Pricing Control Order issued by
Directorate of Food and Drugs.
• 2014: 100 per cent FDI allowed in medical device
industry.
• 2015: India has 10,500 manufacturing units and over
3,000 pharma companies
• National Health Policy Draft 2015 to increase expenditure in health care sector
Market Overview

• Indian Patent Act passed in 1970
• Development of production.
• The National Pharmaceutical Pricing Policy,
infrastructure 2012 (NPPP-2012)
• Export initiatives taken.
• In Union Budget, 2016, FDI increased to 74 per cent in
existing pharmaceutical companies.
• The Government of India unveiled 'Pharma Vision 2020'
aimed at making India a global leader in end-to-end drug
manufacture.
1990 - 2010 2010 - 2015
2010
2016
onwards
1970 - 90
Market Overview

Active
Pharmaceutical
Ingredients (APIs)
• Domestic API Consumption is
expected to reach US$ 18.8
billion by FY22.
• In April 2018, a high-level task
force was constituted to create a
roadmap for increasing domestic
production of APIs.
• Currently India imports over 60
% of its APIs from other
countries.

Contract Research
and Manufacturing
Services (CRAMS)
• Fragmented market with more
than 1,000 players.
• CRAMS industry is estimated to
reach US$18 billion in 2018.
• It is expected to witness a strong
growth at a CAGR of 18-20
percent between 2013-18.

Biosimilar
• The government plans to allocate US$70 million for local
players to develop Biosimilar.
• The domestic player is expected to reach US$40 billion by
2030.

Formulations
• Largest exporter of
formulations in terms of
Volume.
• It is with 14 per cent market
share.
• It is 12th in terms of export
value.
• Drug formulation* exports from
India reached US$ 12.91 billion
during FY18 and US$ 11.71
billion in FY19.

Contract Research and Manufacturing
Services (CRAMS)
• Fragmented market with more than 1,000 players
• CRAMS industry is estimated to reach US$18
billion in 2018 and expected to witness a
strong growth at a CAGR of 18-20 percent
between 2013-18.
Biosimilar
Formulations
 Largest exporter of formulations in terms of
volume, with 14 per cent market share and 12th in
terms of export value. Drug formulation* exports
from India reached US$ 12.91 billion during FY18
and US$ 11.71 billion in FY19 (up to January
2019).
 Double -
digit growth is expected over the next five
years
Pharmaceutical
industry
• The government plans to allocate US$70
million for local players to develop
Biosimilar.
• The domestic player is expected to reach
US$40 billion by 2030.
Active Pharmaceutical Ingredients
(APIs)
• Domestic API Consumption is expected
to reach US$ 18.8 billion by FY22.
• In April 2018, a high level task force was
constituted to create a roadmap for
increasing domestic production of APIs.
Currently India imports over 60 % of its
APIs from other countries.

15.53
16.41
17.87
18.12
14
14.5
15
15.5
16
16.5
17
17.5
18
18.5
2015 2016 2017 2018
IPM- Annual Turnover (US$
billion)
8.9
7.4
1.4
7.8
9.2 9.3
9.7 9.5
0
2
4
6
8
10
12
Mar. 17 Jun. 17 Sep. 17 Dec. 17 Mar. 18 Jun. 18 Sep. 18 Dec. 18
IPM- Quarterly Growth (%)
IPM- Indian Pharma Market PharmaCampus- All Rights reserved

India’s Domestic
Pharmaceutical Market
• Growing 9.4 per cent year-on-year (in Rs) from Rs
116,389 crore (US$ 17.87 billion) in 2017.
• Grew by 10 per cent year-on-year in February
2019.
• Projected to grow 9-12 per cent over the next five
years.

Important points to
remember
• India’s cost of production is significantly lower
than that of the US and almost half of that of
Europe.
• The Ayurveda sector in India is expected to
reach US$ 4.4 billion by 2018 end and grow at
16 per cent CAGR till 2025.
• Increase in the size of middle-class households
coupled with the improvement in medical
infrastructure will also influence in the growth
of pharmaceuticals sector.

0.91
0.31
0.34
0.35
0.41
0.95
1.14
1.27
1.29
1.43
1.61
1.78
2.17
2.34
2.58
0 0.5 1 1.5 2 2.5 3
Vaccines
Hormones
Ophthal
Anti-Neoplastics
Gynaecological
Neuro/Cns
Derma
Pain/Analgesics
Respiratory
Vitamins/Minerals
Anti-Diabetic
Gastro Intestinal
Cardiac
Anti-injective
Segment Wise Moving Annual Turnover
2018 (US$ billion)
• With 70 % of market share, generic drugs form the
largest segment of the Indian pharmaceutical sector.
• Over the Counter (OTC) medicines and patented
drugs constitute 21 % and 9 %, respectively.
• The share of generic drugs is expected to continue
increasing; domestic generic drug market is expected
to reach US$ 27.9 billion in 2020
Annual Turnover 2018 (US$ billion)

• Due to their competence in generic drugs,
growth in this market offers a great
opportunity for Indian firms.
• Based on moving annual turnover, Anti-
Infectives (13.6%), Cardiac (12.4%), Gastro-
intestinal (11.5%) had the biggest market
share in the Indian pharma market in 2018.
• The highest growth in sales in 2018 were
seen in hormones (14.2%), anti-diabetic
(12.9%), and respiratory(12%).
Annual Turnover 2018 (US$ billion)

10.1
12.6
14.5 14.9
16.9 16.8 17.3
13.9
0
2
4
6
8
10
12
14
16
18
20
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19
Pharmaceutical Exports from India
(US$ billion)
31%
19.40%
15.90%
6.80%
6.60%
5%
15.30%
North America
Africa
EU
ASEAN
LAC
Middle East
Others
Major Export Destinations in India’s Pharma
Export in FY18 (%)
• India is the world’s largest provider of generic medicines. Indian drugs are exported to more than 200 countries in the
world, with the US as the key market.
• Indian pharma companies are capitalizing on export opportunities in regulated and semi-regulated markets.
• Pharmaceutical exports from India, reached US$ 17.27 billion in FY18 and US$ 15.52 billion in FY19 (up to January
2019). PharmaCampus- All Rights reserved

0
1
2
3
4
5
6
7
8
9
10
FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19E FY20E
R&D Investment by Indian Pharma Companies*
(% of sales)
57
107
167
287
341
0
50
100
150
200
250
300
350
400
Torrent
Pharma
Cardila
Healthcare
Cipla Lupin Sun Pharma
R&D Spending by Top Indian Pharma
Companies in FY18 (US$ million)
 The biggest export destination for Indian pharma product is the US. In FY18, 31 per cent of India’s pharma
exports were to the North America, followed by 19.4 per cent to Africa and 15.9 per cent to the European Union.
Research and Development

• Investment (as % of sales) in research &
development by Indian pharma companies*
increased from 5.3 per cent in FY12 to 8.5 per
cent in FY18.
• In FY18, highest expenditure on R&D was done
by Sun Pharma, followed by Lupin.
• Sun Pharma’s R&D plan includes developing
more products through expanded R&D team for
global markets, focusing on more complex
products across multiple dosage forms and
investments in specialty pipeline.
Research and Development

Introduction to indian pharma industries

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