The future of the Indian pharma industry is in generics with drugs worth $60 billion coming out of patents, says Venkat Jasti, president of Bulk Drugs Manufacturers Association. Generics market would reach $200 billion mark by the year 2020. The Indian pharma industry contributes about 25 per cent of the global generics market and will soon grow to 35 per cent.
Speaking at a seminar on pharma marketing organized by FAPCCI and Institute for Technology and Management at Hyderabad he said that the ageing population is going to be critical for the pharmaceutical industry and their number is increasing gradually. US, Europe and Japan are emerging as potential markets for drugs for the old as the ageing population is increasing at a very high rate.
He suggested that since India has good scope for clinical trials, proper legislative framework needed to be developed. The government should offer insurance cover for liability and malpractices as in European countries. Technical committees should be set up. Innovation should be taken up seriously. The country needs good patent infrastructure and lawyers to deal with issues of patents. It is a matter of concern that although the Indian pharma industry stands 4th in volume, it is 13th in terms of value.
He revealed that Pharmexcil, the export promotion council for the pharma industry, will conduct a council meeting on 12 February to draw up an action plan for commencing operations, at Hyderabad. Legislation and infrastructure for the council will be in place soon. A steering committee for Pharmexcil headed by DB Mody, former president of IDMA has been formed and other members include Ajit Dangi, director general OPPI and Jasti himself.
The Indian pharma industry is worth $6 billion at present, and is expected to grow four-fold to $25 billion by 2010. Pharmexcil is expected to build the country's image as a quality supplier of pharmaceutical materials and finished drugs.
Hyderabad contributes 30 per cent of Indian pharma industry and can go up to 40 per cent with consistent efforts. Since AP Government has shown its willingness to fund Rs.3 crore towards the initial corpus fund, Pharmexcil is to be headquartered at Hyderabad.