Macro Economy

​Generic drug industry to touch $27.9 bn by 2020: Assocham

Our Bureau New Delhi | Updated on January 22, 2018 Published on September 09, 2015

The domestic generic drug market is expected to cross $27.9 billion from current level of $13.1 billion, registering a compounded annual growth rate (CAGR) of about 16.3 per cent, says a joint study by industry chamber Assocham and market research firm, RNCOS.

The study has based its assessment on approvals accorded by the US FDA and 21 drugs losing patent by 2019. For instance, recently, Sun Pharma got FDA’s nod to manufacture generic hydocodone bitartate with acetaminophen tablets used for treatment of post-operative pain.

“Generics would account for 85 per cent share in the domestic pharma market by 2020, fuelled by cheap labour, patent cliff of blockbuster drugs and prevalence of lifestyle diseases,” says the study ‘Generic Medicines in India- Promulgating Growth & Access’.

The study, however, noted that consumption of unbranded generics in the domestic market was limited in India because of the influence of physicians who prescribe branded medicines, along with the lack of drug pricing control laws. “Thus, generics majors like Sun Pharma, Lupin, Dr Reddy’s etc., have been targeting international markets for their revenue,” it added.

DS Rawat, Secretary General, ASSOCHAM, said he was hopeful that the initiatives announced by the government to include price control policies and the revision of Jan Aushadhi campaign may show a notable incline in the penetration of unbranded drugs.

The domestic pharma market was valued at $15.4 billion in 2014 and is expected to expand at a CAGR of 13.3 per cent to $32.7 billion by 2020, the study said, adding that India is poised to be among the top three pharmaceutical markets by incremental growth and sixth largest market globally in absolute size.

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Published on September 09, 2015
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