400 surveyed companies identify domestic sales as chief driver behind unexpected rise in revenues
An in-depth research from over 400 Indian pharma companies forecast rapid growth for the Indian pharma economy in 2017. This was revealed during the 10th anniversary edition of UBM India’s signature event, CPhI and P-MEC India 2016. Amongst the growth drivers reported are strong domestic sales in the next two to three years, generic APIs exports as well as finished formulation for developed markets.
The findings show that industry confidence is now extremely high, with domestic manufacturers bullish about near-term revenue prospects, averaging a predicted 30.5 per cent growth in 2017. An analysis by sector shows that, of the 400 companies, 60 per cent believed that finished formulations would expand rapidly, while 42 per cent see APIs as the largest growth area. Highlighting the economy’s diversity and willingness to incorporate new product classes, 25 per cent of respondents regard biosimilars and biologics as a burgeoning sector in 2017, particularly following the updated CDSCO biosimilars guidelines.
Indian pharma has benefited from an exponential growth rate in the past decade, yet this has cooled in recent years whilst the industry invested in new infrastructure and improving regulatory standards. However, this new data points to a renewed confidence that will drive another period of strong growth in Indian pharma.
These findings were announced as over 40,000 attendees visit Mumbai for the special 10-year anniversary of CPhI and P-MEC India, including India Pharma week. Over the past seven days, the event helped stimulate this predicted growth as it brought together buyers from Germany, China, Italy, Japan and the US, along with Indian pharma companies for commercial discussions, knowledge sharing and analysis.
One of the underlying reasons behind the renewed confidence in the market is the improving quality standards, as 67 per cent of respondents stated they expected to meet the approaching CDSCO certification deadline on January 1, 2018.
In the past ten years the industry has largely expanded its dollar value through international exports. This is set to continue as a major growth factor in the near future, with more USFDA approvals in the last year (201 ANDA up from 109) paving the way for increased generics sales in the US. However, not only are exports increasing, but also, the gentrification of the Indian healthcare economy is leading to an unprecedented surge in demand for domestic pharma. An impressive 70 per cent of respondents anticipate domestic sales will be the main driver of growth for Indian pharma in the next three to five years.
One of the companies surveyed, commented, “India is seeing great opportunities in a variety of areas, we are seeing strong growth in exports to developed markets, but also strong development domestically. Our pharma companies are on par with US and European standards, so we foresee more high value Indian export to developed countries at a lower rate. Domestically, more and more Indian people now have health insurance, and consumer spending is increasing as areas start urbanising rapidly, so we are also experience high levels of demand across the country, helping drive our domestic sales.”
Indian Pharma Week featured 10 tailored event including the leading Pre-Connect Congress, the UBM India Pharma Awards, Pharma Leaders golf, CEO roundtables, alongside the CPhI and P-MEC India exhibition, bringing together over 1,200 exhibitors. Taking place in two separate venues, the Bombay Exhibition Centre and the BKC, the exhibition connected attendees with pharma and generics companies, ingredients manufacturers, pharma machinery, packaging experts, CDMOs, CROs, biotech and biosimilar companies.
Rutger Oudejans, Brand Director Pharma at UBM EMEA, “India’s domestic market is showing extreme confidence amongst its domestic manufacturing base. The government is actively supporting the pharma industry through several initiatives such as dedicated pharma parks, boosting the biosimilars and biologics sector, and reducing manufacturing costs.
The future looks very promising for Indian manufacturing as we are seeing greater confidence along the entire supply chain, particularly across the P-MEC customer base. Machinery is playing a key role in the development of the industry as it supplies the necessary infrastructure to sustain India’s growth for the next five years.
After 10 years of CPhI India, we should reflect on what the industry has achieved. India has succeeded by seeking innovative ideas and setting new limits, re-imagining what is possible and lowering costs. In the next ten years, India could see even more startling and bold innovation, as our survey findings indicate Indian pharma is set to accelerate its development, and grow ahead of analyst projections.”
EP News Bureau