The size of Indian pharmaceutical industry will grow at about 11% from over Rs.39, 000 crore in 2004-05 to Rs.60, 000 crore in 2007-08 to substantially drive its pharmaceutical exports to regulated markets of US and Europe in generic drugs markets in which $65 billion worth of drugs will go off patent, according to the findings of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The findings further revealed that the Indian pharmaceutical exports will have potential to grow around 18% by 2007-08 to take its total export volume to about Rs.30,000 crore from the exports volumes which exceeded Rs.16,000 crore during 2004-05.
Anil K Agarwal, president, ASSOCHAM said, "The patent's expirations of branded products will substantially contribute to the growth of Indian pharmaceutical industry, thereby boosting its exports, particularly in generic drugs markets because of their low production costs and give India an edge over other countries, particularly those of China and Israel."
The study further points out that globally, drugs worth $ 40 billion are likely to go off patent by the current year itself and another 70 billion dollar drugs will go off patent by 2008. This is against the projection of US and Europe in which drugs worth $65 billion will go off patent. Indian companies are expected to grab around 30% share of the increasing generic market in pharma sector world over.
Africa in the future will provide huge opportunity to Indian drugs manufacturers particularly following withdrawal of the patent suit filed by 39 global pharma companies against the South African government which allowed the sale of cheaper branded generic drugs.
The industry chambers opines that it will be easier for Indian drugs manufacturers to seize larger market share of generic drugs in the overseas market particularly those of US and Europe because it is unlikely that National Pharma Pricing Authority will unleash its regulation on fixing drugs prices to industry.