Growth of Indian Pharmaceutical Industry in 2018-2019

Growth of Indian Pharmaceutical Industry in 2018-2019- Due to the significant competitive intensity and price pressure in the US and regulatory hurdles in India in terms of demonetization, GST implementation, and lower prices, Indian pharmaceutical companies have been going through a tough phase for the past few years. We believe the pricing environment in the US has stabilized, as average price erosion from double digits has now fallen to a single digit, and Indian Pharma Franchise company/companies business should grow in double digits.

After facing a tough time last year, the Indian pharmaceutical industry is heading for a turnaround in FY19. As per a fiscal year presentation of 2018, the sector's year-on-year revenue growth returned to track. The industry, estimated at $33 billion CPhI CEO in 2017, faced steep headwinds due to lower generic opportunities, increased competition, consolidation of suppliers and increased regulatory alerts for Indian PCD Pharma Franchise Company/Companies.

Complex Generics and Speciality Drugs Improving the Pharma Growth

The next patent expiry wave includes complex generics and specialty drugs that are hard to produce and have less competition. Companies have been building capacity as this shift of focus would be the key to sustainable growth in the future. The innovative specialty products provide an exclusive marketing period and therefore offer very high-profit margins.

India Formulations Helps in Improving the Pharma Market Growth

Over the past two years, the Indian pharmaceutical industry has adapted to all disruptions (demon and GST) and has returned to a relatively steady low double-digit growth The Indian government's push to generic adoption has not really gained traction. In the foreseeable future, we expect the industry to grow at 11-12% driven by a mixture of strong volume growth and 3-4% price increase.

In the foreseeable future, we expect the industry to grow at 11-12% driven by a mixture of strong volume growth and 3-4% price increase. This would be significantly positive as domestic formulations offer high sustainable profit margins without any large capex requirement.

The Healthcare Sector Will Grow in Double

The hospital business has double-digit growth and is more accurate. We expect that this growth trend will continue to take into account increased lifestyle diseases, higher penetration and increased coverage of health insurance.

The growth rate in the diagnostic industry has dropped from earlier high double digits to mid-teens mainly due to severe competition in prices. The pace of competition has fallen, and we expect the industry to see the growth of 14-15% coming forward.

The Pharma Vision 2020 of India

India already ranks among the world's top six pharmaceutical producers. India's government has announced a host of measures for the Indian pharmaceutical industry to create a facilitating environment. The Government of India's policies aims to build more hospitals, boost local access to healthcare, improve the quality of medical training, increase public healthcare expenditure to 2-3% of GDP, up from the current 1% level.

• According to' Pharma Vision 2020,' India's government aims to make India a global leader in the production of end-to-end drugs. 
• Because of the low installation and manufacturing costs, manufacturing costs in India are about 35-40% of those in the US. 
• Over the past decade, pharmaceutical exports have grown at a CAGR of 68 %. Indian vaccines are being shipped to over 150 countries.
• In the Indian pharmaceutical sector, the projected human resource requirement is estimated to be around 21,50,000 by 2020.

The Aim of Pharma Manufacturing and Patents up to 2020

India has 10,500 units of production and over 3,000 pharmaceutical firms. India represents 35.7% (3,000) of 8,374 Drug Master Files (DMFs) filed with the U.S., the highest outside the U.S. Because of Products Patents, higher R&D spending has made India a major destination for generic drug production. India has been accredited with approximately 907 CEPs, 845 TGA and 513 registered USFDA sites. After the introduction of product patents, several multinational companies are expected to launch patented drugs in India.

Conclusion

Indian drugs are exported to over 200 countries worldwide, with the United States as the key market. Generic drugs account for 20% of global exports in terms of volume, making the country the world's largest supplier of medicines. If you are looking forward to beginning your career in the pharma franchise business. Then make sure you choose the best pharma company like Medlock Healthcare for better growth and development of your business.