India’s pharmaceuticals market is expected to grow by about 15 per cent in the current fiscal year 2008/09, keeping pace with Brazil, China, Russia, South Korea and Mexico, says a recent study by global industry consulting firm IMS.
India’s medicine manufacturers too would have some reason to cheer, with expensive patented medicine falling out of favour and governments leaning towards cheaper medicines, where Indian companies have a price and quality edge over their competitors in other countries, the study said.
The study sees a slump in the US and a surge in emerging markets.
Industry watchers feel that the country’s medicine industry should grow by 11 to 12 per cent, driven by a renewed focus by home-grown pharmaceutical companies such as Torrent Pharmaceuticals.
“This would help India beat the slowdown in other major markets, where growth would slow to low single digits,” said an analyst who did not wish to be identified.
However, Indian patients may be hit by a scarcity of credit and liquidity in the financial markets, said the study. “Markets with large out-of-pocket spending requirements – including Brazil, India and Russia – also are likely to be affected by economic changes,” said the study.
Medicine companies with interest in US amd EU markets though, have quite a bit to look forward to, the study said.
In Europe, growth driven by the continued aging of the region’s population and rising demand for preventive care will be tempered by the increased impact of health technology assessments, the use of contracting by payers as a means to control costs, and the decentralisation of government healthcare budgets, IMS said.
The market for cheap medicines is expected to grow. An additional $24 billion (Rs 1.15 lakh crore) of patented brand products, including anti-epileptics, proton pump inhibitors and anti-virals, will lose their market exclusivity in the top eight markets in 2009. This will contribute to the sales of more than $68 billion (Rs 3.26 lakh) in generic medicines next year, translating to a 5 to 7 per cent growth rate – similar to 2008 but lower than the levels experienced in 2006 and 2007.