Future Trends In The Indian Pharmaceutical Industry
The Indian pharmaceutical industry is expected to experience remarkably robust growth in 2017, and there are few signs that this white-hot trend will not slow any time soon. A combination of strong domestic sales growth, exports of generic APIs, Indian pharmaceutical acquisitions, and increases in finished formulations is expected to drive this bullish expansion.
India is currently the largest provider of generic drugs throughout the world, and it is expected to outperform foreign competitors for at least the next three years. As revenues continue to increase, industry experts note that some of the expected growth will be due to opportunities represented by the Indian pharmaceutical industry’s embrace of biosimilar and biologic drugs.
INDIA PHARMA: OPPORTUNITIES FOR GROWTH
These classes represent massive opportunities for growth. In fact, according to a 2016 report by Prof. D. Swaminadhan, President and Director General, Jawaharlal Nehru Institute of Advanced Studies, biosimilars could earn the Indian pharmaceutical industry $240 billion annually around the world, within the next 15 years.
Admittedly, this projection was qualified as an “optimistic scenario,” but minimally, it indicates a profound opportunity for growth. India anticipates having 20% of the global market in biosimilars by 2030. At that time, the domestic market alone should be worth $40 billion, according to Swaminadhan.
It should be noted that the current U.S. president has expressed interest in reducing the exclusivity period for biologics to seven years, down from the present 12 years. Should this occur, it would represent yet another opportunity for Indian pharmaceutical companies. Production of biosimilars is not only potentially lucrative; it also opens access to key drugs for patients who might not otherwise be capable of affording them.
Of course, challenges to uninhibited growth remain. Growing pressure to contain drug prices, especially in the U.S. market, and lingering issues regarding India’s track record for regulatory compliance and quality control, have historically constrained growth. There is no denying that in the past, India’s pharmaceutical industry has struggled with quality control issues.
CHALLENGES TO GROWTH
Nonetheless, experts are expressing renewed confidence. Insiders now expect most Indian pharmaceutical companies to achieve CDSCO certification by the January 2018 deadline. India exports pharmaceuticals and APIs to more than 200 countries and colonies. Indeed, international exports have driven revenue expansion for the past decade, and exports are expected to continue growing, as more APIs are projected to obtain FDA approval.
Business has flagged somewhat in the U.S. market, due to pricing pressures and oscillations in currency. Of course, the domestic market in India is vast. With more than 1.3 billion citizens, it’s no wonder insiders anticipate that domestic market growth will account for the bulk of revenue for the foreseeable future.
Spending by the industry on R&D, and especially on specialty drugs and complex generics, has been increasing in recent years. In some cases, this increased spending on R&D has exceeded growth in sales, suggesting that the industry is investing heavily in future growth. Indeed, industry insiders anticipate that this investment, and the trend toward development and marketing of specialty drugs, will represent the logical next step as the industry matures.
INVESTING NOW FOR A MORE PROFITABLE FUTURE
Strict regulatory compliance and superior quality control will remain of paramount importance if the Indian pharmaceutical outlook is to remain rosy. Accordingly, savvy Indian pharmaceutical companies will undoubtedly be looking to ramp up capital investment in key equipment related to research, development and production.
To that end, Quadro Engineering offers a complete line of particle size reduction equipment. Scalability is built into every Quadro Engineering machine, which eliminates one of the more significant hurdles faced by drug makers.
Competition among drug manufacturers is expected to remain fierce as India moves to capitalize on growing domestic and global opportunities. Investing in the best possible equipment, capable of producing the tightest particle size distributions (PSDs), with the lowest production of “fines” and “overs,” ensures that companies will remain ahead in the game.
The High Efficiency Comil® U21, for instance, achieves PSDs that are up to 50% tighter than competing conical mills. That’s because Quadro Engineering devotes significant time and manpower to the design, tweaking, perfecting and redesigning of our machinery to achieve the outstanding results that others cannot, but which our customers have come to expect. The upshot is that customers get reliable, consistent, remarkably predictable results; often in less time, with less energy expended, and less waste. Suitable for dry or wet milling applications, the High Efficiency Comil® U21 is an excellent choice for Pharma Oral Solid Dosage production.
For more information, contact us today and we will be happy to discuss your specific needs with you.