The three-day CPhI and P-MEC India, South Asia’s largest pharma event, began at Bombay Convention and Exhibition Centre, Mumbai which will witness participation from over 97 countries, 1100 exhibitors and 32000 delegates.
As the global demand for generics continues to grow, more investments are expected to flow in this segment. India, which is a significant player in the generics, will continue to flourish and enjoy investments in the pharma sector. India, which is known as ‘Pharmacy of the world’, is expected to rank among the top 10 markets globally by 2020 in value terms. These were the key highlights of India Pharma Report on the occasion of CPhI & P-MEC India 2015, South Asia’s largest industry expo. India pharma industry has grown over 15 per cent annually in the last decade. Similar growth trend is expected to continue in the next 5 years, the report states.
Along with its co-located event P-MEC, CPhI India serves as a platform wherein key players of the pharmaceutical sector, worldwide, will congregate for business. As a pre-cursor to the event UBM India, which organises the event, hosted the Indian edition of Pre-Connect Congress (7th edition internationally), India Pharma Awards and launched industry dedicated publication reports.
UBM India in collaboration with AGR Knowledge Services launched the exclusive ‘Indian Pharma Exporters & The World of PMEC – Collector‘s Edition’ publication. The publication report provides valuable insights on the Indian pharma exports; major exporting companies and highlights their success and performance in FY15. The publication in addition to an overview of the industry including global trends in P-MEC, P-MEC scenario in India, includes global & indian trends of pharmaceutical industry covering production, demand – supply, export trends, investment, key growth drivers of the industry, government initiatives for the industry and future outlook.
Pre-Connect Congress was a series of panel discussion among industry leaders, deliberating on topics related to M&A in pharma, regulatory issues and enhancing synergies, transition of India from a manufacturing hub to an innovation and drug discovery destination, pricing policy affecting profitability, technological advances and the biosimilars as the next booming segment for the Indian pharma market.
The UBM India Pharma Awards in association with TAKE Solutions as title sponsor showcased organisational capabilities in the direction of innovations across 10 different categories and was attended by the industry including policy makers from the country as well as Asia and Europe.
Excellence in contract research was awarded to Accutest Research Laboratories India Private Limited, excellence in corporate social responsibility was awarded to Sun Pharmaceuticals Industries Limited, excellence in EHS was awarded to Zydus Takeda Healthcare Private Limited and Cadila Healthcare Limited (Zydus Cadila), excellence in packaging was awarded to Zydus Cadila Healthcare Ltd, excellence in pharma machinery was awarded to Image Provision Technology Pvt Ltd, excellence in supply chain management & logistics was awarded to Piramal Enterprises Limited, operational excellence to Eisai Pharmaceuticals India Private Limited and Abbott Healthcare Private Limited, excellence in rural reach to Cipla Ltd, excellence in research & development to Bharat Biotech International Ltd and Shilpa Medicare Limited and excellence in brand/product to Cipla Ltd
Life time achievement award was given to Samprada Singh, personality of the year to Vineeta Gupta, inspirational leader to Nick Israni, and emerging entrepreneur of the year to Mehul Shah (Encube Ethicals)
Yogesh Mudras, managing director, UBM India, said “UBM has been an integral part of the global pharma industry for years. In India, in addition to hosting more than 30 content driven conferences dedicated to this industry, we also host Pharmalytica expo in Hyderabad, an annual event dedicated to the analytical, outsourcing and biotech sector in India. The year 2016 will witness the celebration of the 10th successful edition of CPhI India. To mark this milestone, UBM India will be hosting the Pharma Week 2016. Spread across the city of Mumbai including Bombay Convention & Exhibition Centre and BKC, Pharma Week 2016 will include the Expo, CEO Power Breakfast, Pre-Connect Congress, Nextgen Pharma Roundtable, Plant Visits, Exhibitor Showcase and Knowledge Forums, India Pharma Awards and Innovation Gallery amongst others.”
Some of the key highlights of the report released as a part of the event stated that the global pharmaceutical market is currently estimated to be approximately USD 1 trillion in value of which USA accounts for over 40 per cent followed by the European Union (EU) and Japan. Increasing expenditure on drugs in developed economies and improving medical infrastructure in emerging economies will continue to be the key drivers for the growth of this industry. The pharma sector is projected to increase at a CAGR of 5 per cent during 2015-2020 and expected to be over USD 1.3 trillion by 2020.The global pharma market is expected to undergo a number of transitions which is likely to impact or change the growth course in the coming years. Some of the factors which could influence the transition include shift of growth from the developed to the emerging markets; an increasing focus on biopharmaceuticals compared to small molecule drugs and an increasing preference for generics compared to their branded versions.
Primarily, the global pharma market can be segmented as patented pharma products and generics. Generics currently account for over 45 per cent of the global pharmaceutical market by volume and about 20 per cent by value. In India, about 70 per cent of the industry revenue is derived from generics, 21 per cent from OTCs while the remaining 9 per cent is from patented drugs. Indian pharmaceuticals market is the third largest in terms of volume and 13th largest in terms of value. Exports continue to the major reason for the growth and stability of Indian pharma industry .Exports are expected to account for 72 per cent of the total pharma production and reach a value of USD 40 billion by 2020. USA also imports pharma products from over 100 countries. Germany remains the largest supplier, whereas India stands at fourth position in terms of value. India exported USD 4 billion worth of drugs to USA. Needless to say, USA is the top destination for Indian pharma exports.
Contract Research and manufacturing services (CRAMS) is one of the fastest and latest growing segments in pharmaceutical market. India being the manufacturing hub for several pharmaceutical products has made it possible for CRAMS to be the next booming segment in the country. The Indian CRAMS segment, valued at USD 9.3 billion in 2014, is estimated to grow by over 20 per cent to touch USD 19 billion by 2018.The present share of Indian manufacturers in the global CRAMS segment is only 5 per cent and is expected to rise to 7-8 per cent, driven by higher growth.
M&A activities in India touched USD 25.6 billion of which USD 1.7 billion was accounted by pharma. China, Japan and India are among the top ten acquires in US market. The M&A’s activities in India have touched USD 25.62 billion during the first 9 months of year 2015 out of which 16 deals worth USD 1.7 billion was made in the pharma sector. Globally, Germany is considered as the market leader for pharmaceutical machinery and equipment. Italy and Switzerland are the other key geographies in the European continent which supply globally. In Asia, Japan is the most technologically advanced producer of pharma machinery and equipment. USA and Israel are the other global geographies with concentration of pharma machinery and equipment manufacturers.
Currently, India has a robust pharmaceutical equipment and machinery manufacturing segment with about 800 units in India catering to the demand for pharmaceutical equipment and machinery. These units consist of a mix of large, medium and small sized enterprises, together generating an estimated USD 920 million in revenues as of FY2015 up from just about USD 350 million in FY2008. The market is projected to reach USD 1780 million by 2020. Two key factors for this 14 per cent CAGR are the capacity addition to the generics production in the country and sales to newer export markets.
India currently exports pharmaceutical machinery and equipment to over 80 countries globally. The key export destinations for India manufactured machines comprise of the USA, United Kingdom (UK), Middle East (ME) followed by countries in the EU. India also exports to neighbouring geographies of Bangladesh, Pakistan and Nepal. Key manufacturing hubs are Gujarat & Mumbai with upcoming hubs at Haryana, Gurgaon, Faridabad & Ambala.