Today: February 13, 2016, 9:59 am

India pharmaceutical market: $54 billion industry forecast by 2020
PharmaLeaders: Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 - a new market research report on 2014-04-24 15:21:01
The India pharmaceuticals market is suggested to have reached a value of around $17 billion at the end of 2012, and is forecast to grow to a total of $54 billion by 2020.

Many Indian pharmaceutical companies will increasingly look to the development of drugs within niche therapy areas and move away from the overcrowded and increasingly challenging generics landscape. Major pharmaceutical manufacturers in India will spend more on R&D in the near future as they target potentially lucrative and relatively underdeveloped niche therapy area drugs markets.

Companies such as Ranbaxy, Dr. Reddy´s, Lupin and Wockhardt have already been making moves towards niche drug production, with R&D investments increasing in recent times. Many Indian companies already possess considerable manufacturing capabilities and would be able to leverage their experience and infrastructure into achieving scale economies in the development and production of niche drugs.

The generics sector – which currently dominates India´s pharmaceuticals market – does not guarantee long-term profitability or sustainable financial growth, and there are fewer barriers to market entry than there are for branded therapeutics, which require significantly greater resources. Accordingly, competition in the generics sector is fierce and profit margins are slim.

Big Pharma´s rising interest in emerging markets is expected to further squeeze the profitability of India´s generics manufacturers, particularly that of smaller firms. Major players from Europe, Asia, and North America are investing significantly in India and taking advantage of the nation´s relatively cheap resources.

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