Overview of Indian Pharmaceutical Industry

Overview of Indian Pharmaceutical Industry

Market Size and Growth

Indian Pharmaceutical production is expected to reach USD 33.6 Bn by 2011, growing at 21% CAGR over 2006-11.

Key Market Characteristics

Export accounts for over 66% of the market growing at a double rate than domestic market. This is driven by growth in the regulated markets. The exports earlier were limited to semi-regulated markets only, but now, US, EU and japan are also increasing sourcing from India. The primary reason for this is huge number of drugs coming off patent in these countries.

The domestic demand in India is driven by Chronic disease segment such as diabetes, CNS, CVS and lifestyle disease. Similarly, poor sanitation has lead the anti-infective market to grow a lot in recent past years.

Generic Drugs account for over 80% of the demand in India. However, slowly with the advent of Patented drugs now the market is shifting in that direction. After the Patent reforms of 2005, MNCs interest in the market has increased; 11 patent drugs have been launched by MNCs till March 2007

Competitive Landscape

There are over 5,000 manufacturers but only 50 are with any relevant scale. Mentioned below is the list of Top 20 manufacturers in India.

S.No. Company MNC / India Sales (USD M)1 R&D as % of sales1,2

1 Dr. Reddy's Laboratories Ltd. India 1,101 5.6%

2 Ranbaxy Laboratories Ltd. India 1,047 9.2%

3 Cipla Ltd. India 914 4.0%

4 Lupin Ltd. India 513 6.4%

5 Aurobindo Pharma Ltd. India 498 4.1%

6 Sun Pharmaceutical Inds. Ltd. India 431 8.9%

7 Glaxosmithkline Pharmaceuticals Ltd. MNC 428 0.3%

8 Nicholas Piramal India Ltd. India 427 5.1%

9 Cadila Healthcare Ltd. India 385 8.4%

10 Wockhardt Ltd. India 268 4.8%

11 Ipca Laboratories Ltd. India 246 2.7%

12 Aventis Pharma Ltd. MNC 243 0.3%

13 Orchid Chemicals & Pharmaceuticals Ltd. India 234 4.2%

14 Torrent Pharmaceuticals Ltd. India 224 8.3%

15 Glenmark Pharmaceuticals Ltd. India 210 5.2%

16 Pfizer Ltd. MNC 199...