India's pharmaceutical market is highly dynamic and presents significant upsides for both local firms and foreign multinationals. However, as with all emerging markets, there are under-appreciated risks to investments. BMI forecasts that combined sales of prescription drugs and over-the-counter (OTC) medicines will increase from US$15.7bn in 2009 to US$54.2bn in 2019 - a compound annual growth rate of 13.2%.

In our Q410 Business Environment Ratings, India has maintained its status as the eigth most attractive pharmaceutical market in Asia Pacific, ahead of Malaysia but behind Hong Kong. However, India's score has declined from 55.9 in Q310 to 55.3 this quarter. This was due to the Country Risks score dropping from 53 to 50. India scores above the regional average for Industry Rewards (60 versus 49) and Industry Risks (60 versus 55).

Takeovers of local firms by multinational drugmakers are becoming more frequent, rasing concerns among lawmakers and regulators. In September 2010, US-based Abbott Laboratories concluded the acquisition of the healthcare solutions business of Indian healthcare company Piramal Healthcare. Abbott Chairman and CEO Miles D. White said that the acquisition will allow Abbott to become a leading player in the Indian pharmaceutical market as well as enhancing its presence in the emerging markets. Abbott expects its sales in India to exceed US$2.5bn by 2020.

In line with BMI's core view that drugmakers based in emerging markets will increasingly produce hardto- manufacture pharmaceuticals, Mumbai-based Bhabha Atomic Research Centre (BARC) has developed three radiopharmaceuticals - lutetium-177 (Lu-177), yittrium-90 (Y-90) and phosphorous-32 (P-32) - for the treatment of cancers and other medical conditions.

The much heralded Jan Aushadi programme - which seeks to provide low-cost generic drugs to those on low-incomes - is struggling to make an impact. As of August 2010, only 46 out of a planned 300 stores had opened since 2008. The slow pace of the programme was blamed on a lack of support from the Department of Pharmaceuticals. Later that month it was revelead that plans to source unbranded generic drugs from small- and medium-sized firms for Jan Aushadhi outlets had been dropped.

In order to control the threat of fake drugs and protect the pharmaceuticals sector's brand image, the Indian government is planning to introduce a unique identification system for pharmaceutical exports. The new system will ensure that an exported drug from India is manufactured in the country and is not counterfeit. The new system is expected to be launched by November 2010.

Executive Summary
SWOT Analysis
India Pharmaceutical Industry SWOT
India Political SWOT
India Economic SWOT
India Business Environment SWOT
- Table: Asia Pacific Pharmaceutical Business Environment Ratings For Q410
Rewards
Risks
India – Market Summary
Regulatory Environment
- Table: Responsibilities Of India's Department Of Pharmaceuticals
Pharmaceutical Advertising
Pharmacovigilance
IP Regime
- Table: History Of The Indian Patent System
Patent Disputes
Counterfeit Medicines
Pricing And Reimbursement
Industry Trends And Developments
Epidemiology
Healthcare Sector
Healthcare Funding
Healthcare Insurance
Research And Development
Clinical Trials
Recent Developments In The Clinical Trials Industry
Active Pharmaceutical Ingredients
Biotechnology Sector
Traditional Medicines
Industry Forecast Scenario
Overall Market Forecast
Key Growth Factors – Industry
Key Growth Factors – Macroeconomic
- Table: India – Economic Activity
Prescription Drug Market Forecast
Patented Drug Market Forecast
Generic Drug Market Forecast
OTC Medicine Market Forecast
Pharmaceutical Trade Forecast
Medical Device Market Forecast
Other Healthcare Data Forecasts
Key Risks To BMI's Forecast Scenario
Competitive Landscape
Top 30 Pharmaceutical Companies In India According To Moving Average Total (MAT) Sales To July 2010 (US$mn)
Key Pharmaceutical Industry Developments
Company Profiles
Leading Indigenous Manufacturers
Ranbaxy Laboratories
Cipla
Dr Reddy's Laboratories
Aurobindo Pharmaceutical
Venus Remedies
Granules India
Piramal Healthcare
Zydus Cadila
Leading Multinational Manufacturers
Pfizer
GlaxoSmithKline (GSK)
Novartis
Sanofi-Aventis
Merck & Co
Country Snapshot: India Demographic Data
Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
Section 2: Education and Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 1996-2001
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2000-2012
BMI Methodology
How We Generate Our Pharmaceutical Industry Forecasts
Pharmaceuticals Business Environment Ratings
Risk/Reward Ratings Methodology
Ratings Overview
- Table: Pharmaceutical Business Environment Indicators
Weighting
- Table: Weighting Of Components
Sources
Forecast Tables

Pharmaceutical Market Research

India Pharmaceuticals and Healthcare Report Q4

India Pharmaceuticals and Healthcare Report Q4

Contents

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