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Market |
Healthcare and Medical |
Report Type |
Market Research |
Country |
India |
Published |
8 January 2010 |
Number of Pages |
96 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
File Format |
- |
India's US$14.71bn pharmaceutical market is in a state of transition. As the country's economy grows, foreign firms are increasing their presence, the government is spending more on healthcare and local firms are looking abroad for new growth opportunities. Through to 2019, the report is forecasting a compound annual growth rate (CAGR) of 13.77% for medicine sales in India.
India's attractiveness to multinational pharmaceutical has increased over the past quarter. The country's score on the Pharmaceutical Business Environment Ratings has risen from 48.2 in Q409 to 52.8 in Q110. This has also resulted in India moving up to 9th in the proprietary rankings system. The main driver of this improvement was a re-assessment of both the size and growth of the pharmaceutical market. India's Pharma rating is just below the regional average (53.2), but above the global average (51.5). Over the medium term, we fully expect India's ranking to improve significantly.
India's rural market represents an ernomous opportunity for drugmakers and medical device firms. Although anticipated margins are slim, volumes of units sold will be large. In an effort to become the leading pharmaceutical firm in its domestic market, Ranbaxy revealed in December 2009 that it intended to penetrate the challenging rural market. Other companies with a similar strategy include Fortis Healthcare, Novartis, Elder Pharmaceutical and GE Healthcare.
India has reputation for producing sub-standard drugs. In October 2009, senior management from Natco Pharma are facing prison terms for selling a dangerous medicine on the domestic market. It is believed that manufacturing standards must improve or demand for Indian-made pharmaceuticals will decrease. Price controls cover approximately 40% of India's pharmaceutical market. In October 2009, it was revealed that the committee on price negotiations for patented drugs, which was established in 2007 by India's Chemicals Ministry, had not yet submitted its report. The committee was formed to advise on issues surrounding the fixing of prices of imported drugs through negotiations. It had been unable to gather enough support for its formula due to insufficient information on the prices of imported drugs. The ministry recently proposed a 'model' for price negotiation of patented drugs, which was considered by many stakeholders to be unrealistic.
The Burden of Disease Database (BoDD) reveals that non-communicable diseases – such as diabetes and cancer – have a slightly greater burden in India than non-communicable diseases – such as tuberculosis and HIV/AIDS. In 2008, a total of 99,892,742 diability-adjusted life years (DALYs) were lost to communicable diseases, while 116,772,455 DALYs were lost to non-communicable diseases.
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