India's domestic formulations market may exceed $20 billion in next two years

India's bulk drug exports are likely to grow at a compounded annual growth rate (CAGR) of 12%-14% till 2018-19, driven largely by exports to regulated markets as well as continued growth in the semi-regulated markets, according to an ASSOCHAM (Associated Chambers of Commerce & Industry of India) and Yes Bank joint study.

“Share of regulated markets in Indian bulk drug exports might to rise to about 51% by 2018-19, driven by Indian manufacturers' better process chemistry skills, low manufacturing costs, higher number of drug master filings (DMFs), expected expansion of key generic markets and cost reduction initiatives by large global companies,” noted the study titled Indian Pharmaceutical Industry: Changing Dynamics & The Road Ahead.

Of late Indian bulk drug exports have shifted in favor of regulated markets evidently as there has been an increase in the share of these markets to about 49% in 2013-14 from about 43% in 2008-09, noted the study.

Exports of bulk drugs used for manufacturing off-patent drugs will continue to grow at a 12%-14% in the next five years till 2018-19 while demand for active pharmaceutical ingredients (APIs) from on-patent drugs is expected to grow at a slower pace, the study highlighted.

Slow down in branded medicines in Europe and USA anticipated