By Aiswariya Chidambaram, Senior Research Analyst - Healthcare
Branded Generics Dominate the Indian Pharmaceutical Market
India is primarily a branded generics (molecular copy of an off-patent drug with a trade name) market. However, it is important to note that generic versions of molecules which still had patent protection in the rest of the world were produced (by reverse engineering) and marketed in India by domestic market participants until 2005, since India did not follow any patent protection laws up to 2005. Hence, the Indian generic market size includes the sales value of generic drugs sold by both big pharma companies (generic copies of the innovator's molecule sold under a different trade name) as well as Indian generic companies like Ranbaxy, Lupin, and Sun Pharma and so on. The Indian pharmaceutical industry, which is the third largest globally in terms of volume, had a total production output of $23.24 billion in 2010, and was the thirteenth largest, in terms of value. The domestic Indian pharmaceutical market was worth $12.24 billion in 2010, and grew at a significant rate of 17.0 percent per year.
India, a global market leader in the export of generic drugs to countries such as the United States and Japan, as well as to countries in Africa and Europe, had a market share of $11.00 billion in 2010, registering a growth rate of 22 percent. In 2010, the Indian pharmaceutical companies produced 20-22 percent of the world's generic drugs in terms of volume and offered 600 finished medicines and nearly 400 bulk drugs in formulations. Indian firms manufactured products for nearly 60,000 generic brands, covering 60 key therapeutic areas. Approximately 80 percent of this domestic production consisted of formulations, while the remaining 20 percent comprised bulk drugs. The Indian pharmaceutical market is a highly-fragmented one, with more than 20,000 registered units, as of 2010. The top ten participants accounted for nearly 37 percent of the market share, and the top five participants for 22 percent of the market share in 2010.