Published on April 7, 2014
From a global collaboration point of view, the Indian pharmaceutical industry is eminent as one of the most esteemed nations amid the emerging nations. With a strong macro and socio economic foundation, this sector has been inherently deeply rooted by the driving factors. Also, with the current speed breakers such as quality issues faced by a few Indian companies have not been dissuaded.
Moreover, the Indian pharma sector offers to be a lot optimistic. In the year 2005, the pharma sector was noted only USD 6 billion which later in 2012 had significantly increased to USD 18 billion market, with 17% of CAGR. By the year 2020, this sector has been estimated to rise to USD 45 billion.
Last year in the month of June, the Indian drug-maker and Fujifilm Corporation has decided to conclude MoU in order to enter into an exclusive partnership in generic drugs business for Japanese market. On 28th July, 2011 the two companies DRL and Fujifilm had signed the MoU and had conducted the meticulous studies on establishment of a joint venture for developing and manufacturing generic drugs in Japan.
According to the industry experts, the new company was anticipated to develop, manufacture and promote cutthroat and high quality generic drugs. After the SC instructions, the governments as well as the central drug regulatory agency have been vigilant on approving any clinical trial. The Indian clinical trial industry has been marked at USD 550 million and is growing at 12% a year.
In the recent updates, the major Pharma industries Sun Pharmaceutical have agreed to procure the Indian multinational pharmaceutical company Ranbaxy Laboratories Limited for USD 3.2 billion all-share deal. For each Ranbaxy share they own, the generic drug makers Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share.
According to the industry expert, the Sun Pharma plans to hub on the redemption of acquiescence issues that have resulted in bans at multiple Ranbaxy plants. The amalgamation of two generic drugs makers Sun Pharma and Ranbaxy will be eminent as the world’s fifth largest forte generics company and the largest pharmaceutical company in India.
However, exports continued to make a significant contribution to the anecdote of the industry growth. Over the next five years, the Indian Pharmaceutical Industry has been poised for high consistent growth which is driven by a multitude of factors. In this fiscal the exports of active of pharmaceutical ingredients (API) or bulk drugs from Gujarat has been slowed down, due to global decelerate in demand coupled with stiff competition from cheaper bulk drugs from China.
According to the rating agency Fitch, by the year 2015 the Indian Healthcare sector is expected to reach USD 100 billion from the current USD 65 billion rising at around 20% a year.
