Generic drug market to cross $27.9 billion by 2020: study
India’s generic drug market is expected to cross $27.9 billion and would account for 85% share in the domestic drug market by 2020, according to a study undertaken by ASSOCHAM and RNCOS.
The current generic market size is $13.1 billion and is growing at a CAGR of about 16.3%, primarily due to approval granted by the USFDA makers and 21 drugs patent losing licenses by 2019, the study said.
“Generic drugs account for 75% of the domestic pharmaceutical market by value. Drugs for cholesterol control, pain management, anticoagulant, respiratory, liver disorders, depression and lipid regulators are highly prevalent in the global market,” said the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and RNCOS.
The study was conducted on ‘Generic Medicines in India- Promulgating Growth & Access’, which underlined that the staggering growth in the domestic generics market is likely to be bolstered by “cheap labour, patent cliff of blockbuster drugs and prevalence of lifestyle diseases.”
The consumption of unbranded generic medicines in the domestic market is limited due to the lack of drug pricing control. Major generics drug manufacturers including Sun Pharma, Lupin and Dr. Reddy’s have been looking at the international markets for their revenue.
India’s pharmaceuticals market was valued at $15.4 billion in 2014. It is likely to grow at a CAGR of 13.3% to reach $32.7 billion by 2020.
India is the world’s fourth largest pharmaceutical producer. In 2014, its total production output was about $31 billion.
The country enjoys a dominant position in the global drugs market, with its share being 10% by volume and 1.4% by value.
The US receives nearly 28% of Indian drug exports, primarily because of the large number of approvals from the USFDA. India currently has 370 FDA-approved production facilities outside the US - 2nd largest in the world - and has been the third largest drug exporters to the US.
The European Union (EU) and Africa accounts for 18% and 17% of India’s drugs exports, respectively.
September 12, 2015 | 5:08pm IST.
to success.