Indian companies have made an indelible mark in the field of generic medicines. The business for pharmaceuticals, medical devices and healthcare products will grow as the world population demand better healthcare and also gets greyer. Biotechnology is the new sunrise sector. Many code writers found redundant in the IT industry have found employment in this sector. We will diagnose and prescribe tailor-made panacea for your ills. The prescription will be shared with the government agencies so that the policies take cognisance of items flagged by you.
The life sciences sector comprises of pharmaceuticals, biotechnology, medical devices and healthcare. The Indian life sciences market is worth Rs 2.7 lakh crore. India ranks among the top biotech destinations in the world. India provides significant growth opportunities for pharmaceutical companies. The worldwide sales of medicines are expected to reach $1.5 trillion by 2020. The real surge in growth is set to come from emerging markets. Most of the estimated rise in revenues is expected from branded generics. The Indian pharmaceutical industry is likely to be among the top 10 global markets by value by 2020. Higher disposable incomes, better healthcare infrastructure and financing are among the factors contributing to this growth.
The Indian pharma industry is going through an interesting phase. While on one hand it is on the threshold of becoming a major global market by 2020. On the other, it is facing regulatory flak in developed markets. The industry is expected to grow at between 15 and 20 percent CAGR to reach between $50 billion and $74 billion in the next decade. The market size stood at $18 billion in 2012.
India is a leading manufacturer of active pharmaceutical ingredients (APIs) and formulations. The companies include global players in generics and vaccines. Some of the top companies are partly foreign-owned with exports accounting for more than half of their sales. India has a strong base for manufacturing APIs and pharmaceuticals, with over 10,000 factories and more than 125 FDA-approved facilities. Manufacturing of medical devices is also expected to increase. The medical devices segment had a market size of $4 billion in 2012. Private players are also investing in the life sciences logistics sector.
The Indian companies are growing organically as well as inorganically. Licensing and partnerships are fuelling inorganic growth. High valuations are impeding acquisitions. Companies are increasing strength of their field forces, expanding to tier II and III cities and by increasing product portfolios. They have also done well in export markets. Increase in health insurance cover, better technology and mobile health services will be among growth boosters.
The increase in life span and disposable incomes is being accompanied by a rise in the number of people suffering from lifestyle diseases such as obesity, heart disease, stroke, cancer and diabetes. The number of Indians suffering from these ailments is set to double by 2020. This provides a growth avenue for the industry. Also, foreign pharma companies have purchased Indian companies, launched new products with India-specific pricing and added staff.
The huge pool of scientific manpower makes India an interesting destination for drug discovery, development and clinical trials. Improvements in health insurance, technology and mobile telephony are likely to boost the growth of the pharma industry by removing monetary and physical barriers. Companies will also need to adjust to the regulatory environment.
The Indian biotechnology industry comprises of bio-pharma, bio-services, bio-agri, bio-industrial and bio-informatics. The market size stood at $4.3 billion in 2012. The bio-pharma sector accounts for nearly three-fifth of the industry revenues followed by bio-services, bio-agri, bio-industrials and bio-informatics. Bio-pharma and bio-services made up 63 percent and 33 percent respectively of biotech exports.
India’s biotechnology sector revenue is expected to touch $10 billion by 2015. The areas likely to attract investors include protein and antibody production, fabrication of diagnostic protein chips, stem cell research, cell engineering and cell-based therapeutics. Hybrid seeds, including the GM variety, provide new business opportunities.
Other potential investment destinations include medicinal and aromatic plants, animal biotechnology, aquaculture and marine biotechnology, bio-fuels, bio-pesticides, environmental biotechnology, genome analysis, human genetics, seri biotechnology and stem cell biology.
(Disclaimer: The information has been aggregated through secondary research. IFIE is not responsible for errors if any)