Plentiful opportunities - and also challenges - in the Indian pharmaceutical market, say experts

The fact that India is experiencing strong economic growth, including for its pharmaceuticals sector, is well documented, as are some of the challenges facing drugmakers, and these were highlighted by several industry and academic leaders at a select press forum in Mumbai, organized by privately-held Swiss drugmaker Nycomed, along with its inauguration of a new active pharmaceutical ingredients plant in the city (which was attended by The Pharma Letter’s editor; TPL October 4).

Currently valued at some 430 billion rupees (9.5 billon), the Indian pharmaceutical market is increasing at a compound annual growth rate (CAGR) of 19.6% and is highly fragmented, explained Ranjit Shahani, president of the Organization of Pharmaceutical Producers of India and vice chairman and managing director of Novartis in India.

The top 300 brands account for 33% of the total, while the leading 10 contribute 3.6%, and products launched during 1990 to 2005 account for 64%, he said. The retail market is valued at $8.8 billion, made up of 84% branded generics, 8% over-the counter medicines and 8% generic drugs. However, he noted, 65% of the Indian population still has no access to modern medicines. The government could “change this at a stroke,” he said, adding that the industry has offered to supply a certain amount of drugs at cost, but there was no take up of this, although it has launched a rural health initiative, but this still has a long way to go, he said.