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