Mumbai: India is likely to be one of the top 10 drug markets in the next 10 years and will be worth at least $50 billion (Rs2.2 trillion) by then, a report has predicted.
The country is now the 14th largest market in the world with annual sales of $19 billion as of March 2009.
The report by consultancy company PricewaterhouseCoopers (PwC)—“Global pharma looks to India: Prospects for growth”—says Indian industry is likely to become a competitor to global drug makers in certain areas and a potential partner in many others such as contract manufacturing, clinical trials and drug research.
The report noted that India has “considerable contract manufacturing expertise, and leadership in the production of generic or off-patent drugs and vaccines”. India already produces at least 20% of the world’s generics.
The report also says foreign firms will increasingly explore investment opportunities in India in outsourcing production and services, setting up research centres and licensing products and technologies.
“We could see an increased momentum in dialogues between foreign and local industries not only in pharmaceuticals, but also in other areas such as diagnostics and medical devices, in the past six-seven months,” said Sujay Shetty, associate director, pharma and life sciences, PwC India. The report also says India is capable of manufacturing a substantial share of generic medicines to support the $70 billion global market being created as patents expire for several widely sold drugs.
In manufacturing, pharma companies are deepening relationships with Indian firms to service global markets through marketing alliances such as the partnership between Glaxo SmithKline Plc and Dr Reddy’s Laboratories Ltd.
“PwC’s projection is very optimistic, considering the short time span. The projected growth...is achievable, but may take some more time,” said R.D. Joshi, senior consultant, knowledge management, Interlink Marketing Consultancy Pvt. Ltd, a drug retail and marketing consultancy.