Govt’s push for generic drugs may lead to 5-10% fall in pharmaceutical market value: ICRA
New Delhi: The government’s push for generic medicines may lead to an estimated 5-10% reduction in value of Indian Pharmaceutical Market (IPM) if only 20% replacement from branded to generic drugs takes place, a report released by ICRA Ltd said.
“It will not be possible to completely eliminate branded drugs. Considering that the prices of unbranded generic drugs are approximately 30-50% cheaper than branded generics, replacing even 20% of the Rs1.15 trillion IPM with such drugs over the medium to long-term could lead to potential 5-10% decline in IPM as well as dent the profitability of Indian pharma companies. However, with operational issues revolving around its successful implementation, the near-term impact is not expected to be significant,” the report said.