The bio pharma industry is a part of the biotechnology sector that has been growing at the rate of 20% , and along with bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and bioinformatics. In this sector, bio pharma comprising vaccines, therapeutics and diagnostics enjoys the biggest share of revenue- almost 62%, putting it at Rs.12,500crore in 2014.
Worldwide, the Indian pharma market stands at the third position, when judged by volume of business, but almost thirteenth in terms of value. Branded generics take biggest share of the pie- almost 75%, but given the presence of smaller players, there has been a steady consolidation phase over the last few years, and this has helped strengthen the industry base. Given our brilliance pool, the scientists, researchers and doctors that have performed so outstandingly in global labs and development areas, we are never short of brain power. Internationally acclaimed organisations like Medicines Patents Pool have signed sub-licences with some Indian pharma brands like Aurobindo, Cipla, Desano, Emcure, and Laurus Labs. This will support the development of generic drugs as well as specific ones like the anti-AIDS medicine TenofovirAlafenamide (TAF), planned for developing countries.
As per India Ratings, a Fitch Group company, the number of manufacturing facilities registered with FDA for countries outside US, was the highest for India in 2014, about 523 of them. In India, Gujarat has the highest growth rate- about 23% in 2014 end, which is almost twice the rate of the growth of the industry, at about 10% over the last year.
An interesting Report by McKenzie, India Pharma 2015- Unlocking the Potential of the Indian Pharmaceutical Market, projected a growth rate of 12 to 14% in the market by 2014. The industry has obliged, and the actual rate has been shown as 13 – 14% over the last 5 years. Not only in statistical terms, the pharma market in India has also shown promise in terms of the initiatives in treatment of chronic diseases, developments in medical infrastructure and generic drug development. Increasing income levels have created a path for better healthcare delivery, and of course, drug research .
There have been bursts of growth in the bio technology sector over the last few years, but the scenario has been affected strongly by the changes in the leadership structure. Today, the top brands are new entrants in the industry. In addition, innovations driven by technology are aiding new researches and new discoveries, making room for newer and better companies. The traditional methods of growth are on their way out, changing the entire paradigm of the pharma industry.
McKinsey and Company’s Pharmaceutical Research and Medical Products Practice study projects the growth of the Indian pharma market to USD 55 billion by 2020, and will be strongly driven by increase in market affordability and access. It will, then be comparable to the developed markets like US, Japan and China, at that scale. In volume terms, India would be a close second to the US, providing massive opportunities to healthcare upgrade at affordable costs. By 2020, mass therapies will constitute half the market but speciality and super speciality therapies will grow far more rapidly.
The report says that while markets in metro and tier I cities will grow at a steady pace, the racers will be the rural areas, driven by planning in healthcare initiatives, and will see high comparative growth rates. This will largely be because the base level of penetration is very poor, so any growth will be big news. Thus, according to the report, the bio pharma market which stood at USD 12.6 billion in 2009 will touch USD 55 billion in 2020, a four – fold increase over a decade.
The market drivers will be a steady growth of population – almost 1.3% every year and rising incomes on base level GDP, which will give almost 650 million people a health insurance cover by 2020. The biggest impact, however, will be the government aided programs that are being drawn up, and are expected to provide healthcare cover to more than 380 million people, a large percentage being in the far flung and rural areas. Of course, better quality healthcare driven by huge investments (USD 200 billion ) in healthcare initiatives, adding 16,000 beds across all sizes of hospitals every year, will also help.