News: Indian pharma industry to be Rs 60,000 cr in 2007-08

(PTI 02/07/2006) New Delhi - The Indian pharmaceutical industry is expected to grow by 11 per cent and become a Rs 60,000 crore industry by 2007-08, with exports to regulated markets of the US and Europe in generic drugs also likely to increase, industry body Assocham said in a study.

Exports from the industry would grow at around 18 per cent by 2007-08 to take the total export volume to about Rs 30,000 crore as compared Rs 18,290 crore in 2004-05, it added.

The domestic pharma industry stood at Rs 39,000 crore in 2003-04, while exports were Rs 15,500 crore during the same period, the chamber said adding the industry would grow to over Rs 48,015 crore with export volumes likely to exceed Rs 21,582 crore.

Expiry of patents of branded products would substantially contribute to the growth of domestic pharmaceutical industry, thereby pushing its exports, particularly in generic drugs markets, because of their low production costs and give India an edge over other countries like China and Israel, Assocham president Anil Agarwal said in a statement.

Several branded products are slated to lose patent protection in developed markets in the coming years. For instance, in the US drugs worth $40 billion and in Europe worth $25 billion would go off patent by 2007-08, providing adequate opportunities for Indian drug manufacturers in the generic drug market to capture market share, he added.

It would be easier for Indian drug manufacturers to seize larger share of generic drugs in the overseas market, particularly those of US and Europe since it is unlikely that the National Pharma Pricing Authority would unleash its regulation on fixing drugs prices to industry, the chamber said.