Domestic pharma market, which consistently grew at 9.5% CAGR in last 5 years, is poised to accelerate at 13.6% between 2006-10 to touch the market size of US$ 9.48bn by 2010 from the present level of little over US$ 5.7bn, according to a prediction by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Cygnus.
The study predicts that indigenous pharma market is expected to be largely driven by new product launches, especially new branded drugs by foreign firms in next 4 years. The growth rate thus is likely to reach ts peak by 2008-09, after which it may stagnate with a few new product launches.
Between 2000 to 2005, domestic pharma industry grew at an CAGR of about 9.5% and touched the market size at US$ 5.13 bn by March 2005. However, towards March 2006, the growth rate jumped to 11% to hit the market size of US$ 5.7bn, further adds the Paper, forecasting that it will hover around 13.6% between 2006-10 to take up domestic pharma market size at US$ 9.48 bn by 2010.
The Paper points out that indigenous pharma market in value terms accounts for 1% of global pharmaceutical market and 8% in volume terms. Market growth before 2005 of domestic pharma industry was primarily driven by a number of new product launches by both Indian and foreign company. The Indian market started to attract a number of foreign players with the implementation of product patent in January 2005. The FDI in pharma industry is estimated at US$ 172 mn during 2005-06, recording a CAGR of 62.6% during the period beginning 2002-06.