Indian pharma industry needs innovation as the healthcare environment and patient demands are witnessing significant changes. The situation needs to be capitalized as a potential opportunity for growth of the drug manufacturers in the country, stated Ranjit Shahani, president, Organization of Pharmaceuticals Producers of India (OPPI) and vice chairman & managing director, Novartis India Limited.
“The global population is currently going through a period of intense change with three overarching trends: an ageing population, changing lifestyles and emerging markets. People are living longer. Patients are more demanding, lifestyle diseases are on the rise and standards of safety are higher. Emerging markets are presenting new challenges. All of these necessitate innovation. While the need for innovation is at an all time high, the cost of pharmaceutical research has gone up exponentially with the average expenditure of bringing a new drug to market US$ 2 billion,” Shahani told Pharmabiz in an email interaction to assess the current scene of the pharma sector.
“Indian pharma is in a unique position to benefit from the changing trends of the global population. Over the last 30 years, the sector has created a reputation for itself as a producer of low-cost generic medicines. But with the advent of product patents in 2005, the environment has changed providing the Indian pharmaceutical industry with the opportunity to be a game changer,” Shahani pointed out.
Quoting the McKinsey study which estimates the sector value to be US$ 55 billion by 2020 growing at a CAGR of around 14.5 per cent, Shahani said that a growing population with increasing incomes, changing lifestyles and enhanced access are all expected to contribute to this growth.
India stands to gain as global companies are looking to minimize costs from clinical trials and scientific research. The advantages are highly-skilled scientists, cost-efficiency and proximity to a growing group of patients. If India could capitalize on these strengths, it could significantly contribute to the global healthcare to meet the patient needs. There is also need to find new solutions to meet local needs, he said.
There is also a need for a systemic change to improve access of drugs. This is where the Government of India will need to increase healthcare allocation and reform its policies so that the domestic pharmaceutical industry continues growing at the current pace. National pharmaceutical companies do not have the wherewithal to generate the kind of investments required to bring new medicines to market and should look at collaboration as a resource. Public-private partnerships, community financing and local government support are required to help improve access to medicines, pointed out the OPPI chief.
Looking ahead to 2020, the period could be an aspirational year for all stakeholders including the Indian pharmaceutical industry to target its mission ‘healthcare for all’. Changes in the industry will be driven by needs of patients worldwide creating demand for new drugs. “We in India need to go through a paradigm shift of mindset and create an environment and an ecosystem that fosters innovation if we want to be a game changer in the global pharmaceutical arena,” he said.