So does it mea
n that Indian pharma companies have lost their appetite? Or is it capital constraints giving them hiccups? “No”, says Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII. “It’s a well planned strategic move by the Indian pharma companies targeted towards improving their portfolios by entering certain niche segments rather than gobbling-up the entire portfolio of the prey.” Certainly, domestic pharma market is going through a transformation phase, led by strong underlying growth drivers and has witnessed robust growth over the last couple of years. According to a KPMG-CII Pharma Summit 2007 Report, the industry has grown at a CAGR of 13% from 2002-2007 and is further expected to grow at over 16% over 2007-2011. So there’s no dearth of future growth in the sector.
Indian players are also focusing on capturing emerging opportunities in certain niche specialties which offer higher and more sustainable margins to compete with their international counterparts. Moreover, the strategy also compensates for the intense pricing pressure that the generics segment is witnessing these days. But then, “what really holds promise?” seems to be the billion-dollar question.
“While areas like diabetics, cardiovascular hold great promise, some of the traditional sectors like respiratory, anti-infective et al are segments where the Indian companies have an edge over their counterparts as these segments are not well researched globally and have higher success ratio compared to other therapeutic segments,” avers Sarabjit Kour Nangra, VP Research, Angel Broking. Even a recent Deutsche Bank report says, “Currently the most important segment on the domestic market is anti-infective; they account for 25% of total turnover. Next in line, and accounting for one-tenth each, are cardio-vascular preparations, cold remedies and pain-killers”. Thus by gaining dominance in any of theses therapeutic areas, the Indian companies want to make up with what they seem to have lost as result of increasing generics competition.
n that Indian pharma companies have lost their appetite? Or is it capital constraints giving them hiccups? “No”, says Anindya Acharya, Deputy Director, Drugs and Pharmaceuticals, CII. “It’s a well planned strategic move by the Indian pharma companies targeted towards improving their portfolios by entering certain niche segments rather than gobbling-up the entire portfolio of the prey.” Certainly, domestic pharma market is going through a transformation phase, led by strong underlying growth drivers and has witnessed robust growth over the last couple of years. According to a KPMG-CII Pharma Summit 2007 Report, the industry has grown at a CAGR of 13% from 2002-2007 and is further expected to grow at over 16% over 2007-2011. So there’s no dearth of future growth in the sector.Indian players are also focusing on capturing emerging opportunities in certain niche specialties which offer higher and more sustainable margins to compete with their international counterparts. Moreover, the strategy also compensates for the intense pricing pressure that the generics segment is witnessing these days. But then, “what really holds promise?” seems to be the billion-dollar question.
“While areas like diabetics, cardiovascular hold great promise, some of the traditional sectors like respiratory, anti-infective et al are segments where the Indian companies have an edge over their counterparts as these segments are not well researched globally and have higher success ratio compared to other therapeutic segments,” avers Sarabjit Kour Nangra, VP Research, Angel Broking. Even a recent Deutsche Bank report says, “Currently the most important segment on the domestic market is anti-infective; they account for 25% of total turnover. Next in line, and accounting for one-tenth each, are cardio-vascular preparations, cold remedies and pain-killers”. Thus by gaining dominance in any of theses therapeutic areas, the Indian companies want to make up with what they seem to have lost as result of increasing generics competition.
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