Cargo Breaking News
The Indian pharmaceutical industry is expected to grow 7-8% in the next financial year to reach $57 billion in valuation by FY25 after registering a compound annual growth rate (CAGR) of 6%-8% between FY18 and FY23, according to a report by ratings firm CareEdge. In FY23 alone, the market grew 5 per cent year-on-year to $49.78 billion, up from $35.41 billion noted in FY18. The previous 5 years saw an 8 per cent growth in exports and 6 per cent growth in the domestic market, both of which contribute equally to the sector. Although, the export market in developing countries was in recent years marred by shipping constraints due to the Russia Ukraine conflict, a shortage of dollar reserves in African countries and the depreciation of their own currencies, the increased access to healthcare in these countries may drive growth in the long-term.
Developed countries remain a promising market for India, with the US alone making up for 30-35 per cent of the total formulation exports.
While recently, price corrections in the US caused by market consolidation were noticed, India nevertheless saw a notable increase in US export sales volume which is expected to sustain on the back of upcoming patent cliff (when products go off-patent) opportunities, as per CareEdge. Drugs worth $188 billion are set to go off patent worldwide between 2023-26, presenting the Indian industry with significant opportunities to expand its market share. The industry’s focus on launching specialty and niche products may also aid growth
in the US, the report added.
