The pharmaceutical industry’s survival depends on two factors, quality and innovation, said Union Commerce Minister Piyush Goyal, urging them to call out unscrupulous elements who sell spurious products that tarnish the image of the industry, and country.
Goyal was speaking to representatives of the domestic pharmaceutical industry, days after the Centre had withdrawn the track-and-trace requirement on pharmaceutical exports, aligning instead with the Union Health Ministry’s regulatory framework that mandated barcode/QR codes on 300 drug brands (August 1, 2023).
The track-and-trace system for pharma exports was withdrawn with the trust that the industry would do the right thing and make and supply quality products that do no harm, he said. But, a few producers of bad cough syrups are all it takes for a negative impact, he said, calling on industry representatives to become “whistle-blowers” and call out unscrupulous elements that make spurious products.
He urged large companies to work with small ones to bring in good manufacturing practices (GMP) and achieve international standards. Calling on industry representatives to “think big” and beyond just being contract manufacturers of innovations undertaken in other countries, Goyal called on the industry to participate in the research fund and develop innovative products. Goyal and the Drugs Controller General of India Dr Rajeev Raghuvanshi were at an event organized by the Indian Drug Manufacturers Association (IDMA).
Export hub
Meanwhile, a report released at the event, projected that India’s pharmaceutical exports would double from approximately $27 billion in 2023 to $65 billion by 2030, besides growing to an estimated $350 billion by 2047. This would be driven by specialty generics, biosimilars, and innovative products, the report by Bain & Company said. The report was in collaboration with the Indian Pharmaceutical Alliance (IPA), IDMA, and Pharmexcil (Pharmaceuticals Export Promotion Council).
Sriram Shrinivasan, Partner, Bain & Company said, the transition from volume-based to value-led growth was essential for Indian pharma to secure its place in the global market. “Innovation, including the shift towards specialty generics, biosimilars, and novel products, will be the key to India’s pharmaceutical future,” he added.
Growth projections
The report estimated that India’s API (Active pharmaceutical ingredients) export market was projected to grow from $5 billion presently, to $80-90 billion by 2047. With China currently holding 35 percent of the outsourced market, global supply chain shifts and developments like the US Biosecure Act would create opportunities for India, a note on the report said.
And while “Indian players currently hold less than 5 percent of the global biosimilars market, green shoots are visible, driven by increasing R&D investments, an expanded pipeline of 40-plus products and planned capacity addition over the next 3-4 years,” it added. Indian biosimilar exports, presently valued at about $0.8 billion, is projected to touch $ 4.2 billion by 2030, capturing 4 percent of the global market, and reach $30-35 billion by 2047, the note said.