Data shows M&A activity increases by 44.5 per cent in India; the country is expected to take 25 per cent of biosimilars market over the next five years
According to India Brand Equity Foundation (IBEF), a trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the Indian domestic pharmaceutical market is estimated at Rs 90,400 crores ($15 billion) ending FY15 with a growth of 12 per cent. It is estimated that almost 27-30 per cent of India’s pharma market is catered to by multinationals operating in India and around 4,60,000 people are estimated to be employed in the pharma industry. Top 20 companies account for 64 per cent of the market. Eight out of the top 20 are growing faster than the market, with Macleoids topping the list with 23.4 per cent growth followed by Intas with 21.3 per cent, Cipla 19.7 per cent, Glenmark over 19.4 per cent growth and Mankind 19.3 per cent. Besides, India’s pharma exports stood at $15.3 billion in 2014-15. M&A activities in the industry accounted for $5.78, billion an increase of around 44.5 per cent in comparison to 2013.
The government’s continuous and concerted efforts have resulted in the reach of modern medicine to almost all corners of the country, and its measures have resulted in the steady decline of communicable diseases. The successful eradication of polio, small pox etc. can be attributed entirely to the tireless efforts of the government. The Ministry of Health and Family Welfare is responsible for the implementation of national health and family welfare programmes such as the prevention and control of major communicable diseases, maternal and child health.
Public-private partnerships, an increased penetration of healthcare facilities in non-metro cities, involvement of multinationals in setting up facilities in the country, and establishment of educational institutions, are just a few multiple prime reasons enabling India to experience a surge in the global market. Other key assets which have played a role in India becoming a leading pharma market are a thorough know-how in the manufacture of generics, rapidly developing research and development facilities with talented technical staffing, internationally recognised systems of pharmacy education, and a broad patient population pool enabling intense clinical trials.
India accounts for 30.3 per cent (2,911) of 9619 Drug Master Files (DMFs) filed with the US, which is the highest outside the US. India has been accredited with approximately 1187 CEPs, more than 950TGA, and 584 sites approved by US FDA. Despite a challenging intellectual property regime, pharma R&D activities are increasing in India. An average of 8-10 per cent of the total revenue of the India domestic pharma market, i.e. $15 billion, is spent on R&D.
ZydusCadilla has launched ‘Lipaglyn (chemical name is Sarogltazar), its original research being to treat Hypertrigycerdemia in Type-II diabetes. Glenmark has several new chemical and biologics. Contract Research and Manufacturing Services (CRAMS) in India is estimated to reach $18 billion in 2018, up from $7.6–7.8 billion in 2013. The biopharma market is valued at $2.5 billion whereas India is expected to grab at least 20-25 per cent of global market share in biosimilars in the next five years.
India is also making inroads to new regulated markets like Japan. Several initiatives have been undertaken by industry for engaging with Japanese pharma companies, including contract manufacturing of advance intermediates for drugs under clinical development/about to be made commercial, marketing APIs to Japanese generic and innovation companies, providing quality intermediates to the Japanese innovator companies.
The last few years have reshaped and repositioned India in the realm of healthcare and pharma, and the results have started to show in its high ranking position in the global pharma market.