Regulatory risk management, speciality pharma opportunity, sale of over-the-counter drugs via prescription, micro market strategy, engagement beyond physician, tapping institutional opportunity and portfolio play adjacent to pharma are seven areas where companies will invest disproportionately, stated Amit Mookim, MD – South Asia, IQVIA.
 
In addition, health consumerism and technology are evolving in India. These include increased focus to search engines or platforms to access medical information, online pharmacy websites, home healthcare and information on doctors for second opinions, stated Amit Mookim.
 
In fact, all of these are technology start-ups where venture capital and private equity players too have invested $500 million invested that reinstates the importance of this business model, he added.
 
The Pharmerging sector comprising countries of China, Brazil, India, Russia, Mexico, Saudi Arabia, Poland, Turkey and Argentina among others is expected to reach US$ 350 billion by 2021 and India is among the key market drivers. Global pharma market is growing steadily at over 4.5%. The total sales revenues expected to touch is US$ 1,166 billion by end of 2018.
 
India is among the key market drivers. It is third Pharmerging markets after China and Brazil. Besides being the second fastest growing markets among the top 10 after Turkey. In 2021, the Indian pharma revenue is estimated at $28 billion as per the IQVIA Global Market Prognosis Report updated February 2018.
 
In all these markets, oil dependence, high public health expenditure and fiscal deficits have led governments to take up procurement of generic drugs. Emerging markets are dependent on oil more than global peers. We see Algeria, Morocco, Vietnam, Malaysia, Indonesia, Philippines, Columbia, Brazil, UAE, Saudi Arabia, Mexico taking measures to increase generic drug prescriptions to contain costs, stated Mookim at the DIA India 6th Pharmacovigilance Conference-- Drug Safety Unplugged. He delved on 'Healthcare & Drug Safety - India Perspective’.
 
It is here we see that geographic focus is essential in view of a diverse country dynamics. Lucrative markets enable growth due to favourable conditions and ease of doing business. Therefore large markets with slow growth can be focussed upon in medium term. Small markets with fast growth and easier entry are most attractive, he added.
 
Indian pharma market has grown at 11 per cent. But growth was impacted in 2017 with FDC ban, GST and demonetization. But Post GST, recovery has begun with growth rebound.
 
In the case of FDC ban, 344 drugs were pulled out impacting 3.6 per cent of the Indian pharma market amounting to US$ 600 million where acute therapies accounted for 80 per cent of total banned portfolio.
 
During demonetisation, 86 per cent of the Indian currency got invalidated leading to 78 per cent of the stockists and 62 per cent chemists reporting drop in month-on-month sales. With GST, 90 per cent of stockists faced sales drop as per the IQVIA study, he said.
 
Even acute therapies were most impacted with demonetisation and GST. This is where to spur growth investors are now keen to invest in unique services including regulatory risk management, engagement beyond physician, among others, he said.