The global Pharma industry is under serious pressure from a large number of innovator molecules facing patent expiration, a thin pipeline of new drugs, regulatory challenges and pricing pressures. This has led to a directional shift towards the emerging markets of Asia, Australia, Africa and Latin America, which are growing three times faster than the current growth rates experienced in the industry’s leading markets of North America, Japan and Europe. It is expected that over 40% of the global Pharma industry’s incremental growth over the next decade will come from the emerging markets.
The Indian Pharma industry is on the threshold of becoming a major global market by 2020. Many experts believe that the Industry has the potential to grow at an accelerated 15 to 20% CAGR for the next 10 years to reach between US$49 billion to US$74 billion in 2020.
The report looks at developments in the branded generics market, over-the-counter products (OTC), vaccines and rural markets, and seeks to analyze what lies ahead for the industry as it aims to capitalize on the promise of the domestic market place. It is also brought out that the domestic Indian pharmaceutical market has a positive growth trajectory but will also face major transformational challenges in the next decade. Some of these challenges are examined and key imperatives are identified to accelerate the domestic market’s growth.
The CII-PwC report was released at the 8th Edition of Pharma Summit 2010 organized by CII on 27 November, 2010 in Ahmedabad.