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G. Naga Sridhar

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Hyderabad, May 24 Export of pharmaceuticals from the country increased 16 per cent in 2007-08 compared with the previous financial year. According to provisional figures available with Pharmaceutical Export Promotion Council (Pharmexcil), the pharmaceutical exports in 2007-08 stood at Rs 28,703 crore against Rs 24,600 crore in 2006-07.

“Though the growth rate had come down by two percentage points in comparison with 2006-07, which registered about 18 per cent growth over the earlier year, the overall growth is satisfying at a time when the rupee’s appreciation against the dollar was a major concern,” Dr P.V. Appaji, Executive Director, Pharmexcil, told Business Line here.

The increased competition from China in global markets and the appreciation of the rupee against the dollar were behind the dip in the growth rate compared with that of 2006-07, he added.

According to Mr M. Narayana Reddy, President, Bulk Drug Manufacturers Association of India, the growth in exports was driven by India’s increased share in global new formulations business.

On the slight dip in exports growth rate, Mr Reddy said there was more to cheer about the overall growth than to worry over relative decline in comparison with 2006-07. “The market conditions were very tough last year, with price hikes of raw material imports from China and pricing pressures in many markets,” he said.

The pharmaceutical industry was expecting similar challenges in the global market this year too, he added.

However, from next year , the prospects for pharma exports are likely to brighten with availability of domestic raw materials for bulk drug manufacturers.

The increase in Chinese raw material prices is turning domestic Active Pharmaceutical Ingredients production profitable, which would pick up by next year. “This would reduce input costs for our drug-makers offering price advantage in the export market,” he explained.

According to Dr Will Mitchell, professor of Business Administration (strategy), Duke School of Business, Duke University, US and director of Neuland Laboratories Ltd, the growing market potential for generics in Europe and the US would offer big export opportunity for Indian pharma companies over the next five years.

“About 66 per cent of medical prescriptions in the US are in generics and this itself is a big opportunity,” he said.

More Stories on : Pharmaceuticals | Exports & Imports | Industry Associations

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