Indian Pharma Sector


Indian Pharma sector by 2019 is 3rd largest by volume and 13th largest by value. Indian pharma market is currently worth $55 billion. India is home to nearly 1400 WHO-GMP (Good Manufacturing Practices) approved Pharma Plants, with 253 European Directorate of Quality Medicines (EDQM) approved plants. In 1969, Indian pharma had a 5% share in its own pharma market. 50 years later Indian pharma share 85% of total drugs in Indian market. Indian Pharma market is 70% generic, 21% over the counter (OTC) and 9% patented. India is World's largest provider of generic drug globally, meets 50% of global demand, 40% of US demand, 25% of UK demand. India's biggest drug exporter in US (38% of total) followed by Sub-Saharan Africa(20%). Presently 80% of the Antiretroviral drugs used globally to combat AIDS are supplied by India. Indian pharma export in FY20 stood at $20.70 billion. India also account 30% of $70-$80 billion US generic market. India has highest number of USFDA (US Food and Drug Administration) authorization granted outside USA. Indian pharma industry did well in formulations and indigenous medicines sector but with the gradual liberalization, the pharma market was flooded with imports from China. The country is heavily import dependent to fulfil its drug requirements. Around 70% of the pharmaceutical requirements are met by Chinese imports of some basic raw materials, particularly the APIs (Active Pharmaceutical Ingredients) – the bulk components to produce finished drug formulations. These Chinese bulk drugs or APIs cost approximately 1/3rd compared to Indian manufactured APIs. India is home to 8 out of 20 World's top generic drug companies. Sun Pharmaceuticals, headquartered in Mumbai, is India's largest and world's 4th largest Generic drug manufacturer in terms of net worth. Serum Institute of India, headquartered in Pune, is the world's largest vaccine producer by number of doses produced. Telangana accounts 40% of total bulk drug production in India. In FY17 India's top 5 pharma companies (Sun Pharma, Lupin, Dr. Reddy's, Cipla and Aurobindo Pharma) spent over ₹8025 crore (~$1.2 Billion) in R&D. The revenue of India's top 5 drug manufacturers has increased from ₹24545 crore in FY10 to ₹90590 crore in FY17. Due to this phenomenon India is known as the "Pharmacy of the World".

Below are the revenue of India's Top 15 Pharma companies on FY18. Except Abbott, all are headquartered in India. Abbott India Limited was founded in 1944. Abbott India Limited is public listed company and a subsidiary of Abbott Laboratories USA. Abbott India has headquarters in Mumbai, Maharashtra.


Irony is India's public sector drug/pharma company IDPL or Indian Drugs and Pharmaceuticals Limited (HQ: Gurugram, founded : 1961) didn't even feature in top 15. 

India's Biotech industry was valued at US$ 62 billion (12% of Global) in 2019, that rose from US$ 7 billion (2015) to US$ 11.1 billion(2017). They are targeting to reach US$ 150 billion by 2025. India has over 2700+ biotech startups. India's largest bio-pharmaceutical company is "Biocon", founded by Kiran Mazumdar-Shaw. The parent company’s key subsidiaries are Syngene International Limited, Biocon Biopharmaceuticals Private Limited, Biocon Research Limited, Switzerland-based Biocon SA and Malaysia-based Biocon SDN.BHD. 

P.S. India's pharma export to good old neighbor Pakistan is 3% of total export in terms of value (USD) and 0.4% of total in terms of volume.

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