I am delighted to write to you at the end of what has been a satisfying financial year for Alembic Pharmaceuticals Limited. Amid an uncertain global environment and challenging industry dynamics, we have continued to grow.
This encouraging performance has been supported by our commitment to quality, adherence to compliance, manufacturing excellence and strong supply chain capabilities.
The global pharmaceutical market is expected to exceed $1.5 trillion by 2023 and the key growth drivers will continue to be the US and India. India’s pharma spends are expected to increase to $28-32 Billion by 2023. Last year, the Government of India launched the National Health Protection Scheme (NHPS), with a vision to provide insurance cover to an estimated 50 Crores individuals from nearly 10 Crores poor and vulnerable families. With the government having spent half a Billion dollar as funding for the programme, the Finance Minister while presenting the Interim Budget raised the allocation for Ayushman Bharat scheme to Rs. 6,400 Crores for 2019-2020. This will further provide an impetus to the sector and help the patients with better access to medicines.
Currently, the domestic pharma industry contributes to over 4% to the gross domestic product (GDP), against the global average of 9%. However, this is going to improve in the next five years with the estimated rise in domestic pharma spends. Today, close to half a Million people are directly employed by the sector, making India the second highest skilled biotech workforce in the world after China. India is also one of the largest exporters to regulated pharma markets across the globe and Indian pharma firms contribute to over 20% of global generic business.
These positive trends bolster our commitment to ensure that no patient will be denied access to high-quality affordable medicine and medical support.
As an Indian pharma company with over 100 years of expertise, we have progressed on the path to providing high-quality products to patients globally. A strong domestic branded business and steady progress on building capabilities to provide a diversified offering to stable developed markets remain our competitive advantage. This provides us the window to leverage more growth opportunities.
Like the earlier years, we remain committed to strengthening our R&D capabilities, in FY19 our investment in R&D was around 13% of our total revenue. Our combined R&D strength today stands at 1,100 employees. This talent pool enables us to leverage our huge investments in manufacturing capabilities for general injectables, oncology injectables, oncology solids and ophthalmic.
This year we filed 29 Abbreviated New Drug Applications (ANDAs) in the US, which take our cumulative filings to 161 ANDAs. Our new launches in US during the fiscal were nine, reaffirming our promise of consistently offering innovative and differentiated products to our patients.
We are continuously investing in the Company’s complex manufacturing capability and fortifying our supply chain management practises to achieve operational excellence.
Our capacity expansion plan is on track. Our Indian formulations business added substantial prescriber base in FY19, reaffirming our brand’s position.
Aleor, our joint venture for dermatology products, filed eight ANDAs in the fiscal and received two ANDA approvals. Coupled with a US front-end and a diversified product portfolio with improving market share in the Indian market, your Company is on a steady path of growth and is inching closer to becoming a strong pharma player with a long-term growth vision both in the international and domestic market.
As a company with a rich legacy of serving the global pharma market, we remain focussed on complete compliance to regulatory norms and have integrated our human resources management processes to drive a culture of integrity.
Better access to affordable healthcare remains one of the biggest global challenges and at Alembic we are working towards meeting this global priority.
Our efforts are underpinned by steady production of high-quality products, an agile supply chain and a proactive marketing team that leverages opportunities to reach more patients across geographies.
On behalf of the Board, I would like to express my heart-felt appreciation to our employees, our business partners and our wide stakeholder community for their guidance and support.
I remain confident that we are well positioned to continue in our strategic direction; delivering sustainable value to all our stakeholders.
Chairman and CEO