Indian Pharma Sector To Excel In 2008
The seven emerging pharmaceutical markets of India, China, Brazil, Mexico, South Korea, Turkey and Russia are expected to grow 12-13% in 2008, touching $8,500-9,000 crore, reported IMS Health Inc. Also, the global pharmaceutical market is expected to grow at 5-6% in 2008, compared with 6-7% last year.
The report stated that, for the first time, the seven largest markets will contribute just half of the overall growth, while the seven emerging markets will contribute nearly 25% in 2008. Last year, pharma markets in China, Korea and India grew 25.7%, 10.7% and 13.0%, respectively.
India, with a population of more than one billion, is the second largest pharmaceutical market in terms of volumes consumed, said the IMS report.
A McKinsey report stated that India's pharmaceutical market has the potential to grow to $2,000 crore by 2015, maintaining 12.3% CAGR, growing more than 300% from $600 crore in 2005. This incremental growth of around $1,400 crore will make India the third largest after the US and China in value terms in 10 years.
India is a major destination for contract research and manufacturing services, owing to its low costs, skilled manpower and manufacturing capability, with a number of USFDA-approved plants operating in the country. API manufacturing, clinical research and basic research are the major facilities currently offered by domestic service providers.
According to ORG IMS data, the Indian pharmaceutical market grew 14.80% in fiscal 2008, largely driven by volume and new products, with the domestic market touching Rs 32,095 crore. Tier II cities (with population less than 1 lakh) and rural areas currently account for 40% of the market, and are expected to grow much faster than the rest of the country.
The domestic formulations market has witnessed double digit growth in recent years. Population growth, increased health care access, increased affordability and better epidemiology are the key factors that led to rising growth levels.
SOURCE: IMS Health Inc.