1. Indian Pharmaceutical Market
Overview – 2013
Mr. Nitesh Bhele, Mumbai

2. IndexMain Highlights of Indian Economy
Highlights of Indian Pharma Industry
Indian pharmaceutical market segments by value (2010)
Market share by value in Asia-Pacific (2010)
USFDA-approved facilities in India
Investment, M&A and JVs
Share of patented and generic drugs in overall market (USD billion)
India
Government Spending & Initiatives
Global Pipeline For Patented Products
Total Unaudited and Audited Global Pharmaceutical Market, 2003 –
2011
 Total Unaudited and Audited Global Pharmaceutical Market By Region
Top 20 Global Companies 2012
Top 20 Therapeutic Classes 2012
Top 20 Global Products 2012
Newer technologies used in pharmaceutical sales and marketing

3. Main Highlights of Indian Economy
• Indian Economy grew at 5.0 % in 2012-13 and is expected to grow at 6.1-
6.7 % in next fiscal year.
• Overall industrial performance, as reflected by the index of industrial
production (IIP) showcased growth of 2.1 % in Q3 of 2012-13
• WPI inflation to decline to 6.2-6.6 % in March 2013
• Cumulative exports recorded during 2012-13 (April-December) stood at Rs
1,166,439 crore (US$ 217.09 billion), registering a growth of 9.4 %.
• Imports in 2012-13 (April-December) at Rs 1,967,522 crore (US$ 366.20
billion) registered a growth of 29.4 %
• Foreign exchange (Forex) reserves stood at US$ 295.6 billion at end
December 2012
Source: Economic Survey of India 2012-13, IBEF

4. Highlights of Indian Pharma Industry
• Fragmented market with more than 1000 players & 60000 brands.
• Domestic market size is currently valued at about USD10 billion;
the segment is set for double-digit growth over the next five years.
• From USD200 million in 2008, revenues are set to jump to
USD550-600 million by 2012-13.
• USD8.7 billion export market as of 2010.
• The government plans to allocate USD70 million for local players to
develop biosimilars.
• There are more than 350 manufacturing sites endorsed by EU for
their GMP in India on Apr 30, 2013.
• Positioned as low cost life saving generic drug industry.

5. • The OTC market is forecasted to be worth USD6.6 billion by 2016
• The Indian pharmaceuticals industry sales stood at USD15.6 billion
during 2011.It is forecasted to double in five years, reaching
USD35.9 billion by 2016.
• The Indian pharmaceuticals industry exports from India are
forecasted to increase more than two folds over the next five years
.The trade surplus in the pharma sector is likely to expand to
USD16.5 billion by 2016
Source:
BMI, Datamonitor, Various industry
estimates, Aranca Research

6. Indian pharmaceutical market segments
by value (2010)
Source:
Datamonitor, Aranca Research

7. Market share by value in Asia-
Pacific (2010)
Japan accounts for over 50 % of
pharmaceutical sales in Asia-
Pacific, followed by China which
is a distant second with 19 %,
while India, with a little over 10
% market share, ranks third by
market size.
Source:
Datamonitor, Aranca Research

8. USFDA-approved facilities in India
India has over 120
USFDA-approved and
84 UK MHRA -
approved
manufacturing
facilities. These
facilities significantly
support the companies
involved in CRAMS.
Source:
BMI, Aranca Research

9. Investment, M&A and JVs

10. Share of patented and generic drugs in
overall market (USD billion) India
The share of
generic drugs is
expected to
continue to
increase; it could
represent about 90
per cent of the
prescription drug
market by 2016.
Source:
BMI, Aranca Research

11. Government Spending & Initiatives
• Government spending on healthcare expanded at a CAGR of 18 %
during 2005-09.
• Increased government expenditure on healthcare could create an
over USD4.5 billion market for pharmaceuticals in the next few
years.
• Penetration of health insurance is expected to more than double by
2020 .
• Increasing penetration of health insurance is likely to be driven by
government-sponsored initiatives such as RSBY and ESIC.

12. Global Pipeline For Patented
Products
*Excluding preclinical
Source: Pharmaproject, Mckinsey analysis.

13. Total Unaudited and Audited Global
Pharmaceutical Market, 2003 – 2011
Source: IMS Health Market Prognosis, May 2012

14. Total Unaudited and Audited Global
Pharmaceutical Market By Region
Source: IMS Health Market Prognosis, May 2012

15. Top 20 Global Companies 2012
Source: IMS Health, IMS MIDAS, December 2012

16. Top 20 Therapeutic Classes 2012
Source: IMS Health, IMS MIDAS, December 2012

17. Top 20 Global Products 2012
Source: IMS Health, IMS MIDAS, December 2012

18. Newer technologies used in pharmaceutical
sales and marketing

19. Glossary
• CRAMS: Contract Research and Manufacturing Services
• API: Active Pharmaceutical Ingredients
• FDI: Foreign Direct Investment
• INR: Indian Rupee
• USD: US Dollar
• RSBY: Rashtriya Swastha Bima Yojna
• ESIC: Employees State Insurance Corporation

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(Nitesh Bhele)
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