400 surveyed companies identify domestic sales as chief driver behind unexpected rise in revenues
CPhI and P-MEC India, that was part of the India Pharma Week, closed yesterday, as in-depth research from over 400 Indian pharma companies forecasted rapid growth for the Indian pharma economy in 2017. Chief amongst the growth drivers reported are strong domestic sales in the next 2-3 years, generic APIs (Active Pharmaceutical Ingredients) 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% growth in 2017.
An analysis by sector shows that, of the 400 companies, 60% believed that finished formulations would expand rapidly, while 42% see APIs as the largest growth area. Highlighting the economy’s diversity and willingness to incorporate new product classes, 25% 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 visited Mumbai for the special 10-year anniversary of CPhI and P-MEC India, including India Pharma week. Over the past seven days, the event has helped stimulate this predicted growth as it brought together buyers from Germany, China, Italy, Japan and the United States, 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% of respondents stated they expected to meet the approaching CDSCO certification deadline on 1 January 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 United States. 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% of respondents anticipate domestic sales will be the main driver of growth for Indian pharma in the next 3-5 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 urbanizing rapidly, so we are also experiencing high levels of demand across the country, helping drive our domestic sales”.
The complete findings of the UBM India survey will be published in CPhI Pharma Insights India Report later in the year, along with an international perspective and a deeper analysis of the market.