Indian Pharma Sector Analysis

Indian Pharma Sector Analysis

The market research report “Indian Pharma Sector Analysis” by RNCOS is detailed study of the Indian pharmaceutical market. It does an exhaustive investigation on the structure of the domestic pharmaceutical market and gives a thorough analysis of the driving and restraining forces operating against it.

India has one of the fastest growing pharmaceutical markets in the world. In 2006-07, this market was valued at over US$ 7 Billion. Driven by a huge patient base, increasing incomes, improving healthcare infrastructure and strong penetration of health insurance, the pharmaceutical market is expected to grow more than double its size in the next five years. Drugs for acute diseases presently dominate this market; however, the increasing penetration of lifestyle-related diseases is expected to fuel the growth of drugs targeting chronic diseases.

The Indian pharmaceutical market at present is highly fragmented, with the top three companies having a market share of around 5% each. However, introduction of the product patent regime is likely to result in heavy consolidation in future.

Key Findings

§ The domestic pharmaceutical market in India has grown at a CAGR of nearly 12% in the last five years.
§ At present, drugs for mass therapies dominate, however, driven by an increasing prevalence of lifestyle-associated diseases, drugs for specialty therapies are expected to remain buoyant in future.
§ Around 67 Million Indians are expected to be above 67 years of age by 2011. This age group spends around 3 to 4 times more on drugs than those in younger age groups, thus fuelling the market growth.
§ Patented drugs, which had no share in the pharmaceutical market, are expected to have a 10% market share in 2010.
§ Around 64% Indians are not covered under by health insurance and pay expenses for pharmaceuticals out of pocket.
§ Driven by factors such as rising rural incomes and a strong distribution network, India’s rural pharmaceutical market is experiencing a strong growth.
§ The product patent regime will encourage the Indian companies to invest more in Research and Development.

Key Issues & Facts Analyzed

§ Evaluation of past, current and future market trends.
§ Evaluation of the market by segment.
§ Discussion about the major drivers of the pharmaceutical market.
§ Analysis of the opportunities created by the market.
§ Review on the government regulations on the market.
§ Analysis of the major challenges faced by the market.
§ Competitive landscape of the market.

Key Players Analyzed

This section provides the overview, key facts and financial information of prominent players in the Indian pharmaceutical market Like Ranbaxy Laboratories Limited, Cipla Limited, GlaxoSmithKline Pharmaceuticals Limited, Nicholas Piramal India Limited and Zydus Cadila.

Research Methodology Used

Information Sources
Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Methods
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

1. Analyst View
2. Global Pharmaceutical Market
2.1 Market Size & Growth
2.2 Leading Therapy Classes
2.3 Leading Pharmaceutical Companies
2.4 Leading Drugs
2.5 Geographical Performance
2.6 India - The Emerging Market
3. India - Macroecomomic & Healthcare Profile
3.1 Macroeconomic Profile
3.1.1 GDP
3.1.2 Consumer Price Index
3.1.3 Currency Fluctuation
3.1.4 Foreign Direct Investment
3.2 Population Profile
3.2.1 Population
3.2.2 Sex Ratio
3.2.3 Age Profile
3.3 Healthcare Profile
3.3.1 Healthcare Spending
3.3.2 Sources of Healthcare Payments
3.3.3 Doctors & Nurses
3.3.4 Hospitals & Clinics
3.3.5 Top Causes of Mortality
4. Indian Pharmaceutical Market
4.1 Turnover
4.2 Exports & Imports
4.2.1 Exports
4.2.2 Imports
4.3 Bulk Drugs & Formulations
5. Domestic Pharmaceutical Market
5.1 Drivers
5.1.1 Ageing Population
5.1.2 Increasing Income
5.1.3 Product Patent Regime
5.1.4 Improving Medical Infrastructure
5.1.5 Increasing Prevalence of Lifestyle-related Diseases
5.2 Market Size & Growth
5.3 Market Segmentation
5.3.1 By Drugs
5.3.1.1 Traditional Branded Generics
5.3.1.2 Specialty Branded Generics
5.3.1.3 Generic Generics
5.3.1.4 Patented Drugs
5.3.2 By Therapeutics
5.3.2.1 Acute Segment
5.3.2.2 Chronic Segment
5.4 Government Regulations & Market Entry
5.4.1 Industrial & Manufacturing License
5.4.2 Patent Laws
5.4.3 Research & Development
5.4.4 Pricing
5.4.5 Market Entry
5.5 Opportunities
5.5.1 For the Industry
5.5.1.1 Biogenerics
5.5.1.2 Rural Markets
5.5.1.3 Cardiovascular Market
5.5.1.4 Diabetes Market
5.5.1.5 Asthma Market
5.5.1.6 Obesity Market
5.5.1.7 Oncology Market
5.5.1.8 HIV Market
5.5.2 By the Industry
5.5.2.1 Contract Manufacturing
5.5.2.2 Contract Research
5.5.2.3 Bioinformatics
5.5.2.4 Health Insurance
5.5.2.5 Drug Delivery & Packaging Industries
5.5.2.6 Pharmaceutical Retail Chains
5.6 Challenges
5.6.1 Lack of Innovation
5.6.2 Drug Price Controls & Low Margins
5.6.3 Low Per Capita Spending on Drugs
5.6.4 Multinationals Reluctant to Invest in India
5.6.5 Counterfeit Drugs
5.6.6 Low Government Financing
5.7 Future Outlook
5.7.1 Market Drivers & Restraints
5.7.2 Sales (2007-08 to 2011-12)
6. Competitive Landscape
6.1 Market Structure
6.2 Market Share of Key Players
6.3 Profile of Key Players
6.3.1 Ranbaxy Laboratories Limited
6.3.2 Cipla Limited
6.3.3 GlaxoSmithKline Pharmaceuticals Limited
6.3.4 Nicholas Piramal India Limited
6.3.5 Zydus Cadila

List of Figures:

Figure 2-1: Global - Pharmaceutical Market (in Billion US$), 2001-2006
Figure 2-2: Global - Pharmaceutical Market Growth (%), 2002-2006
Figure 2-3: Global - Leading Pharmaceutical Companies (in Billion US$), 2006
Figure 2-4: Global - Pharmaceutical Market by Region (%), 2006
Figure 2-5: Global - Top Pharmaceutical Markets (in Billion US$), 2005
Figure 2-6: Global - Forecast for Top Pharmaceutical Markets (in Billion US$), 2015
Figure 2-7: Global - CAGR of Top Pharmaceutical Markets (%), 2005 to 2015
Figure 3-1: India - Nominal GDP (in Million US$), 2001-2006
Figure 3-2: India - Nominal GDP (in Million US$) 2007-2011F
Figure 3-3: India - Consumer Price Index (%), 2001-2006
Figure 3-4: India - Consumer Price Index (%), 2007-2011F
Figure 3-5: India - Currency Exchange Rates (From US$ to INR), 2001-2007
Figure 3-6: India - Foreign Direct Investment (in Billion US$), 2002-03 to 2006-07
Figure 3-7: India - Foreign Direct Investment in Pharmaceuticals (in Million US$), 2003-04 to 2006-07
Figure 3-8: India - Population (in Million), 2003-2006E
Figure 3-9: India - Population (in Million), 2007-2011F
Figure 3-10: India - Ratio of Males & Females in Population (%), 2003-2006
Figure 3-11: India - Population Breakup by Age (%), 2003-2006E
Figure 3-12: India - Population Breakup by Age (%), 2007-2011F
Figure 3-13: India - Healthcare Spending per Head (in US$), 2001-2006E
Figure 3-14: India - Healthcare Spending per Head (in US$), 2007-2011F
Figure 3-15: India - Breakup of Healthcare Payments by Source (%), 2006
Figure 3-16: India - Number of Doctors (in ‘000) 2005 & 2006E
Figure 3-17: India - Number of Doctors (in ‘000), 2007-2011F
Figure 3-18: India - Number of Nurses (in ‘000), 2004-2006E
Figure 3-19: India - Number of Nurses (in ‘000), 2007-2011F
Figure 3-20: India - Number of Hospital Beds (in ‘000), 2004-2006E
Figure 3-21: India - Number of Hospital Beds (in ‘000), 2007-2011F
Figure 3-22: India - Number of Deaths due to Leading Causes (in Numbers), 2005
Figure 3-23: India - Leading Causes of Death (%), 2005
Figure 3-24: India - Forecast for Leading Causes of Death (%), 2030
Figure 4-1: India - Pharmaceutical Market Turnover* (in Billion INR), 2001-02 to 2006-07
Figure 4-2: India - Breakup of Pharmaceutical Market (%), 2006-07
Figure 4-3: India - Pharmaceutical Exports (in Billion INR), 2000-01 to 2006-07
Figure 4-4: India - Major API Exports (in Billion INR), 2005-06
Figure 4-5: India - Major Dosage Form Exports (in Billion INR), 2005-06
Figure 4-6: India - Breakup of Pharmaceutical Exports by Region (%), 2005-06
Figure 4-7: India - Forecast for Pharmaceutical Exports (in Billion INR), 2007-08 to 2011-12
Figure 4-8: India - Pharmaceutical Imports (in Billion INR), 2000-01 to 2006-07E
Figure 4-9: India - Breakup of Pharmaceutical Imports by Group (%), 2005
Figure 4-10: India - Bulk Drugs Production* (in Billion INR), 2001-02 to 2006-07E
Figure 4-11: India - Formulations Production* (in Billion INR), 2001-02 to 2006-07E
Figure 5-1: India - Population of People above 65 Years (in Million), 2003 -2006E
Figure 5-2: India - Income Distribution among Households (%), 1989-90, 2001-02 & 2006-07E
Figure 5-3: India - Prevalence of Lifestyle Related Disorders (%), 2005
Figure 5-4: India - Share of Mass & Specialty Therapies in Pharmaceutical Market (%), 2004, 2006 & 2015F
Figure 5-5: India - Domestic Pharmaceutical Market (in Billion INR), 2001-02 to 2006-07
Figure 5-6: India - Breakup of Domestic Pharmaceutical Market by Drug Category (%), 2004
Figure 5-7: India - Forecast for Breakup of Domestic Pharmaceutical Market by Drug Category (%), 2010
Figure 5-8: India - Traditional Branded Generics Market (in Billion US$), 2004 & 2010F
Figure 5-9: India - Specialty Branded Generics Market (in Billion US$), 2004 & 2010F
Figure 5-10: India - Generic Generics Market (in Billion US$), 2004 & 2010F
Figure 5-11: India - Patented Drugs Market (in Billion US$), 2004 & 2010F
Figure 5-12: India - Breakup of Domestic Pharmaceutical Market by Therapeutic Category (%), 2006
Figure 5-13: India - Breakup of Drugs for Acute & Chronic Diseases in Domestic Pharmaceutical Market (%), 2006
Figure 5-14: Global - Biogenerics Market (in Million US$), 2006 & 2011F
Figure 5-15: India - Breakup of Pharmaceutical Market by Geographical Tier (%), 2005
Figure 5-16: India - Forecast for Breakup of Pharmaceutical Market by Geographical Tier (%), 2011
Figure 5-17: India - Number of Coronary Heart Patients (in Million), 2005 & 2015F
Figure 5-18: India - Cardiovascular Market (in Billion INR) 2005, 2006 & 2010F
Figure 5-19: India - Number of Diabetes Patients (in Million), 2005 & 2015F
Figure 5-20: India - Anti-diabetic Market (in Billion INR) 2005, 2006 & 2010F
Figure 5-21: India - Number of Asthma Patients (in Million), 2005 & 2015F
Figure 5-22: India - Anti-asthma Market (in Billion INR), 2002, 2006 & 2010F
Figure 5-23: India - Number of Obese Patients (in Million), 2005 & 2015F
Figure 5-24: India - Anti-obesity Pills Market (in Million INR), 2006 & 2010F
Figure 5-25: India - Number of Cancer Patients (in Million), 2005 & 2015F
Figure 5-26: India - Oncology Market (in Billion INR), 2005, 2006 & 2010F
Figure 5-27: India - Prevalence of HIV (%), 2002 & 2007
Figure 5-28: India - AIDS/HIV Drugs Market (in Million INR), 2001, 2006 & 2010F
Figure 5-29: Global - Countries with Maximum Number of US FDA Approved Manufacturing Plants, 2005
Figure 5-30: India - Contract Manufacturing Market (in Million US$), 2005-2010F
Figure 5-31: India - CRO Industry (in Million US$), 2006 & 2010F
Figure 5-32: India - Bioinformatics Market (in Million US$), 2002–03 to 2006-07 & 2011-12F
Figure 5-33: India - Health Insurance Market (in Billion INR), 2001-02, 2006-07 & 2011-12F
Figure 5-34: India - Drug Packaging Market (in Billion INR), 2006–07 & 2011-12F
Figure 5-35: India & Global - Proportion of Revenue Spent on R&D (%), 2005
Figure 5-36: India - Spending on R&D (in Million US$), 2000-01 to 2005-06
Figure 5-37: Global - Per Capita Drug Consumption of Top Pharmaceutical Markets (in US$), 2006
Figure 5-38: Global - Share of State & Personal Financing in Top Pharmaceutical Markets (%), 2006
Figure 5-39: India - Income Distribution among Households (%), 2006-07 & 2011-12F
Figure 5-40: India - Forecast for Prevalence of Lifestyle Related Disorders (%), 2015
Figure 5-41: India - Population of People above 65 Years (in Million), 2007-2011F
Figure 5-42: India - Forecast for Domestic Pharmaceutical Market (in Billion INR), 2007-08 to 2011-12
Figure 6-1: India - Share of Companies in Pharmaceutical Market (%), 2006

List of Tables:

Table 2-1: Global - Leading Therapy Classes by Sale (in Billion US$), 2006
Table 2-2: Global - Leading Drugs by Sale (in Billion US$), 2006
Table 2-3: Global - Pharmaceutical Market by Region (in Billion US$), 2006
Table 4-1: India - Pharmaceutical Exports to Top Countries (in Million US$), 2003-2005
Table 4-2: India - Pharmaceutical Imports from Top Countries (in Million US$), 2003-2005
Table 5-1: India - Share of Drugs for Acute Disorders in Domestic Pharmaceutical Market (%), 2006
Table 5-2: India - Share of Drugs for Chronic Disorders in Domestic Pharmaceutical Market (%), 2006
Table 5-3: India - Launch of Patented Drugs by Product & Company
Table 5-4: India - Number of Drug Delivery Companies by Formulation Type (1999, 2003 & 2007E)
Table 5-5: India - Expansion Plans of Pharmacy Retail Chains
Table 5-6: India - Counterfeit Drugs in Domestic Pharmaceutical Market
Table 6-1: India - Performance of Top 20 Pharmaceutical Companies, 2005
Table 6-2: India - Performance of Top 20 Pharmaceutical Companies, 2006
Table 6-3: Ranbaxy Laboratories Limited - Key Financials (in Million INR), 2004-2006
Table 6-4: Cipla Limited - Key Financials (in Million INR), 2005-06 & 2006-07
Table 6-5: GlaxoSmithKline Pharmaceuticals Limited - Key Financials (in Million US$), 2005 & 2006
Table 6-6: Nicholas Piramal India Limited - Key Financials (in Million INR), 2005-06 & 2006-07
Table 6-7: Zydus Cadila - Key Financials (in Million INR), March 2004 to March 2006