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India’s pharma industry may touch $55 bn by 2020: Report

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Country’s pharma sector is likely to grow over three-fold to hit USD 55 billion in the next five years. even as the exports from the sector may slow down to grow at a CAGR of 7.98 per cent owing to stricter regulations in markets such as the US, Russia and Africa, a joint report by Assocham and TechSci Research reveals.

Consolidation of pharmacy players in North America has resulted in the presence of leading firms that hold better bargaining power, it added. The study report cited instances like the acquisition of the US distributor Celesio by US pharmacy Mckesson’s in 2014, and formation of a joint venture between the US wholesale distributor Cardinal Health and CVS Caremark in 2013. India is the largest supplier of medicine to the US and pharmaceutical exports from India rose from USD 3.44 billion in 2013 to USD 3.76 billion in 2014. Pharmaceutical exports to the US are rising due to the increasing demand for high quality generic drugs in the market. However, the growth rate for exports of pharmaceutical products from India to the US is declining, due to increasing US Food and Drug Administration (FDA) scrutiny on the quality of pharma products coming from drug manufacturing plants located in India.In order to boost the growth rate of exports to the US, Indian companies will need to leverage their compliance to US FDA regulations, it added. The report further said the exchange rate issue in the country is affecting the pharmaceuticals market in Russia.