The pharmaceutical market can be divided into different therapeutic segments on the basis of application. The shares of various therapeutic segments depend, to a great extent, on the level of economic development, disease incidence and the availability of healthcare infrastructure. In India, anti-infectives account for the largest market share of about 26 per cent.
-- The market for pharmaceutical products is broadly divided into the ethical segment (drugs in this segment are available only against a doctor's prescription) and the over-the-counter (OTC) segment (no doctor's prescription is required).
-- Anti-diabetics, central nervous system, and cardiovascular are the fastest growing: sub-segments in the lifestyle-related segment of the Indian pharmaceutical market.
-- The anti-infectives segment, which is the largest, consists of five sub-segments: antibiotics; anti-protozoals; anti-helmintics; anti-malarials; and anti-tuberculosis. The anti-infectives segment is estimated to be growing at the rate of 2-3 per cent per annum.
-- The respiratory segment is the largest therapeutic segment in the
OTC market.
Market Segmentation
In terms of end-use, the pharmaceutical industry is sub-divided into several therapeutic segments. These segments are broadly defined on the basis of therapeutic application. The various broad therapeutic segments and the sub-segments under each category are as follows:
Some of these segments are low-volume, high-margin segments, while the others are high-volume with relatively low margins.
Anti-infectives
This is the largest segment in the Indian pharmaceutical industry. The anti-infectives segment is a mature segment with a high level of competition, especially in antibiotics, which is the largest sub-segment in this group.
The size of the Indian antibiotics market in calendar year (CY) 2001 was estimated at Rs.32.5 billion, which marked a growth rate of 2-3% over the previous year.
Other related segments include: anti-protozoa treatments, anti-helmintic group, anti-malarials and anti-tuberculosis drugs.
Pain Management
This therapeutic segment can be divided into three broad sub-segments, viz. pure analgesics & antipyretics; non-steroidal anti-inflammatory drugs (NSAIDs); and anti-arthritis drugs. The size of the domestic formulations market (retail segment) forpain management medicines was estimated at Rs. 14.5 billion in CY2001. For pure analgesics, the size of the domestic market is an estimated Rs. 2.47 billion. The size of the domestic market for NSAID formulations is estimated at Rs. 10 billion, growing at the rate of 13-14 per cent per annum. Of the total market for NSAIDs, systemic formulations account for around 85 per cent, and topical formulations for the rest. The size of the market for NSAID formulation combination drugs is around Rs. 3 billion.
Gastro-Intestinal Segment
The major sub-segments in the gastro-intestinal therapy segment are antacids, anti-ulcerants, anti-spasmodics. India is almost self-sufficient in the production of bulk drugs in the gastro-intestinal therapeutic segment. The size of the overall gastro-intestinal formulations market in India is estimated at Rs. 12.5 billion, growing at the rate of 11 -12% per annum.
The Respiratory Segment
The market for respiratory drugs can be divided into three broad sub-segments: cough arid cold; anti-histamines; and anti-asthma. As in the case of respiratory bulk drugs, the market for respiratory formulations can be divided into three broad sub-segments: anti-histamines; cough and cold; and anti-asthma. The size of the domestic retail formulations market for respiratory drugs is estimated at Rs. 15.5 billion (as in CY2001), growing at the rate of 8-10% per annum.
Globally, CNS drugs account for about 15 per cent of the total pharmaceutical market. In India, the size of the retail market for CNS formulations was estimated at Rs. 7.75 billion (in CY2001), growing at the rate of 15-16 per cent annually.
Other Segments
Anti-Diabetics: A large number of anti-diabetes bulk drugs are exported to the developed countries such as Germany and the UK, while formulation exports are made to the developing countries in South Asia and Eastern Europe. The size of the domestic retail anti-diabetes formulations market is estimated at Rs. 5.75 billion, growing at the rate of around 35 per cent annually. Of the total market, around 30 per cent is accounted for by insulin-based formulations, the demand for which is growing at the rate of 18-19 per cent per annum. Insulin products may be based on bovine (animal) or human insulin. Formulations based on human insulin account for around 70 per cent of the insulin formulations market, and animal/bovine insulin products for the rest.
The market for oral anti-diabetic products (which account for around 70 per cent of the total anti-diabetes market) is large because of the prevalence of type II diabetes. The incidence of this variety of diabetes has increased because of the change in lifestyle patterns and growing sedentary living habits. The market for oral anti-diabetic products in India is growing at around 35 per cent per annum
Vitamins: The size of the overall domestic market for vitamins is estimated at Rs. 9 billion. The growth in the vitamins market has slowed down in recent times following improvement in diet. While the growth reported by vitamins is 8-10 per cent per annum, the figure is driven mainly by multi-vitamin formulations and minerals.
Source: ICRA