India's current market share is at 3.6 percent, valued at around $38 billion. For it to achieve the 7 percent goal, i.e. $120-130 billion value by 2030, growth would have to be at 11-12 percent annually.
The Indian pharmaceutical industry aspires to have a 7 percent share in the global drug market by 2030, a joint report by the Indian Pharmaceutical Alliance (IPA) and McKinsey said.
The current market share is at 3.6 percent, valued at around $38 billion. For it to achieve the 7 percent goal, i.e. $120-130 billion value by 2030, growth would have to be at 11-12 percent annually, it added.
The target though stiff is achievable as patents for branded molecules with cumulative global sales of over $251 billion are expected to expire between 2018 and 2024. Indian generic companies are expected to capture a big slice of the pie.
In addition to the patent cliff, investment by Indian companies on newer product classes such as biosimilars and specialty drugs and increased exports to underpenetrated international markets like Japan, China, Africa, Indonesia and Latin America will help reach the target.
On the domestic front, to get to 7 percent, the report: 'Indian Pharmaceutical Industry: The Way Forward - Vision 2030', said the pharmaceutical market would have to break into top 5 markets in the world from its current ranking of the 11th market by value.
Ayushman Bharat – the state-sponsored universal health coverage programme with a focus on chronic healthcare, will be key to driving this growth.
On innovation, the report expected India to aspire for three to five new molecular entities and 10–12 incremental innovation launches per year, by 2030.
But the report warns about pricing pressure and buyer consolidation in the US, increased scrutiny in quality compliance when supplying to international markets, lack of stable pricing and policy environment domestically, dependence on imports for bulk drugs and intermediates and lack of capabilities in innovation space, as some of the key challenges.
"The Indian pharmaceutical industry is entering its next phase of growth. At this critical juncture, there is a need for stronger collaboration between pharma companies, the government and regulatory agencies," said Sudarshan Jain, Secretary General of IPA"Concerted efforts by the pharmaceutical companies and government’s intervention in the form of enabling policies and a supportive ecosystem can help the industry achieve Vision 2030," he added.