Impact of 2019 Budget on PCD Pharma Franchise Sector Explained by Medlock Healthcare

Impact of 2019 Budget on PCD Pharma Franchise Sector Explained by Medlock Healthcare- Pharmaceutical companies market branded medicines in India and the government will compete directly against branded players to improve access to generic medicines. For the sector, this is a slight negative. Higher impact for companies that have a large proportion of primary care and do not charge a price premium. The Indian PCD Pharma Franchise Sector is at rapid growth and is no longer a hidden thing. Indeed, India eventually becomes a health center offering quality treatments to people worldwide.

As in previous years, the budget has not announced anything specific to the pharmaceutical sector and no significant changes or announcements have been expected. Pharmaceutical companies face several geographical challenges and, in order to remain competitive in the overseas market and to make the transition from pureplay generic players to branded pharmaceutical companies like Medlock Healthcare, scalable incentives could provide the necessary incentive, especially in the field of drug discovery and innovation.

Key Factors in 2019 Budget for PCD Pharma Franchise Sector

India is the world's largest supplier of generic drugs. The pharmaceutical industry in India supplies more than 50 percent of the global demand for different vaccines. The major 4 key factors for budget 2019 related to Indian pharmaceutical industry are:

• India's government aims to make India a world leader in the production of end-to-end drugs.

• Increasing investments in research and development and acquisitions in the private sector are driving growth in the sector.

• High economic growth and increasing health insurance penetration to drive health and medicine expenditure in India.

• Low production costs and increased expenditure on research and development have resulted in competitive pharmaceutical exports, with exports reaching the US $17.27 million. 

A Major Positive Impact on the Pharma Market from Budget 2019

In 2017, the pharmaceutical industry was estimated at US$ 33 billion. The pharmaceutical industry in the country is expected to expand to US$ 55 billion at a CAGR of 22.4 percent in 2015-20. India's pharmaceutical exports in FY18 amounted to US$ 17.27 billion and in FY19 reached US$ 10.80 billion (until October 2018). Exports of pharmaceutical products include bulk drugs, intermediates, formulations of drugs, biologicals, Ayurveda & herbal products and surgical products.

A Massive Growth in the PCD Pharma Franchise Business

The report highlighted the high burden of disease, good economic growth leading to higher disposable incomes, improvements in healthcare infrastructure and improved financing of healthcare. In the last five years, the Indian pharmaceutical industry has grown at a compound annual growth rate (CAGR) of more than 15 percent and has significant growth opportunities.

However, companies will have to rethink their business strategy to maintain this robust growth rate by 2020. They will have to adopt new business models and think about innovative ideas to provide faster and better service to their evolving customers.

Indian Pharmaceutical Franchise Research and Analysis as per Budget 2019

India is one of the world's top six global pharmaceutical manufacturers. In 150 countries, Indian vaccines are exported. India produces 40-70% of the demand for DPT & BCG from the World Health Organization and 90% of measles vaccines. About 70 percent of patients in developing countries receive Indian medicines through non-governmental organizations such as the Clinton Foundation, the Bill & Melinda Gates Foundation, Doctors Without Borders, UNCTAD, etc. India's pharmaceutical exports in 2016-17 amounted to US$ 16.4 billion and are expected to grow by 30% in the next three years to reach US$ 20 billion by 2020. 

Conclusion

The Indian government has announced a number of measures to create a facilitating environment for the pharmaceutical industry in India. India's government policies aim to build more hospitals, increase local access to healthcare, improve the quality of pharmaceutical products and improve the quality of medical education. India's government is committed to establishing robust mechanisms for healthcare and delivery. India is well placed to be one of the main drivers of healthcare for all while controlling the ever-increasing spending of both developed and developing countries on healthcare.