Pharma
Summary:
India is third in volume terms and fourteenth in value terms. Primarily due to being mostly a generics-dominated market.
Global spending of medicines is expected to surpass $1.1 trillion by 2024.
Domestic pharma market estimated at USD 42 billion in 2021. Likely to reach USD 65 billion by 2024 and USD 120-130 billion by 2030.
Despite being major exporters of certain drugs, major drug requirements are met from imports which is 25% of total Indian pharma industry
Drug and pharmaceutical exports of USD 24.44 billion in FY 21 with India being the 12th largest exporter of medical goods
Step 1
R&D
(Formulation in case of new and modification/adjustment in case of old drugs)
Step 2
Trials
Step 3
Approval (Patenting for new drugs/ modification)
Step 4
Distribution (Pharmacies, Hospitals and Clinics)
Step 5
Promotions (Pharma Rep-HCP interactions, speaker programs, online promotions)
Cost Drivers
R&D
Patent filing
Manufacturing
Distribution
Promotional Activities
Revenue Drivers
Sales of drugs
Patent licensing
Exporting Drugs
Penetration
Insurance premiums
Growth Drivers
Specialty medicines
Telehealth (Tech-driven healthcare)
Rare diseases
Ayushman Bharat scheme
Outlay of INR 197,000 crores over 5 years for pharma PLI scheme
FDI inflow of US 18.12 billion between April 2000 to June 2021
Key Customers
HCPs
Households
Hospitals, Clinics and Nursing Homes
Key Players
Sun Pharma
Dr. Reddy's Labs
Divi Labs
Cipla
Aurobindo Pharma
Zydus Cadila
Channels
Direct sales
Online selling