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The country is largest vaccine producer in the world 

PHARMACEUTICALS

FDI in pharmaceuticals in India

India enjoys an important position in the global pharmaceuticals sector with a 20% share of generic medicines in supplies by volume. The Indian pharmaceutical industry handles 60,000 generic brands across 60 therapeutic categories with a strong network of 10,500+ manufacturing units and 3,000 pharma companies, India achieved a pharma exports figure of USD 16.3 billion in the year 2015-16.

India is expected to rank amongst the top three pharmaceutical markets in terms of incremental growth by 2020.

Indian vaccines are exported to150 countries and more than 500 different Active Pharmaceutical Ingredients (APIs) are manufactured in India.

Industry Scenario

Indian pharmaceutical sector accounts for about 2.4% of the global pharmaceutical industry in terms of value. The turnover of Indian pharmaceutical industry was estimated at USD 27.5 bn in FY 2015-16. The market is expected to expand at a CAGR of 12.8% over 2015–20 to reach USD 55 bn.

Generic drugs with 70% of market share form the largest segment of the Indian pharmaceutical sector. Over The Counter (OTC) medicines constitute around 21% of the market while patented drugs have a 9% share.

The Indian medical device market stood at USD 3.9 bn in 2015, accounting for approximately 1.7% of the global medical device market. The industry estimate suggests that the Indian medical device market will grow to USD 8.1 bn in 2020 at a CAGR of 16%. India is one of the top 20 global medical device markets, and the 4th largest medical device market in Asia.

Highlights

  • 1
    Largest vaccine producer in the world
  • 2
    Bio-Pharma is the largest sector contributing to 62% of the total revenue.
  • 3
    Fourth largest medical device market in Asia

HIGHLIGHTS

RECENT INVESTMENTS

1. November 2017 - Piramal Enterprises Ltd acquired a portfolio of spasticity and pain management drugs from UK-based specialty biopharmaceutical company Mallinckrodt Pharmaceuticals, in an all-cash deal for USD 171 mn.

2. October 2017 - Sun Pharmaceutical Industries Ltd, India's largest drugmaker, has entered into an agreement with Switzerland-based Novartis AG, to acquire the latter’s branded cancer drug Odomzo for around USD 175 mn.

3. January 2017 - Aurobindo Pharma has bought Portugal based Generis Farmaceutica SA, a generic drug company, for USD 144 mn.

4. November 2016 - Sun Pharmaceuticals Industries Limited plans to acquire 85.1% stake in Russian company Biosintez for USD 24 mn for increasing its presence in Russia through local manufacturing capability.

FDI Facts

15.6bn FDI inflows (in USD) in drugs & pharmaceuticals during April 2000 - December 2017

100% FDI allowed in greenfield pharma

74% FDI allowed for brownfield pharmaceuticals projects