Slowdown could be attributed to the new drug pricing policy and the regulatory interventions over last year – See more at: http://www.businessworld.in/news/business/pharma/pharma-industry-not-in-pink-of-health/1136565/page-1.html#sthash.chqhLvjL.dpuf
Increased regulatory interventions and price controls have pulled down the steady growth of the Indian pharmaceutical market.
The Indian pharmaceutical market (IPM) grew only 9.8 per cent in 2013 to reach Rs 72,069 crore in 2013 (Moving Annual Total Sales upto June) as compared to the 16.6 per cent growth in 2012, said a report brought out today by CII and PricewaterhouseCoopers (PwC).
The report said this slowdown could be attributed to the new drug pricing policy and the regulatory interventions over last year.
The IPM was valued Rs 65,654 crore in 2012 and the market had a Compounded Annual Growth Rate (CAGR) of approximately 15 per cent between 2010 and 2012.
The study observed that the implementation of the National Pharmaceutical Pricing Policy 2012 by the government of India has resulted in margins erosion from 20 per cent and 10 per cent to 16 per cent and 8 per cent for retailers and stockists respectively. This decrease in the stockist margins led to a significant uncertainty among many stockists regarding the feasibility of staying in business due to lower profitability post the margin reduction.
The slowdown is more prominent in the MNCs than in Indian companies. In 2012, the top five MNCs had a growth rate of 16 per cent, which dropped down to 7 per cent in 2013.
Similarly, in 2012, the top five Indian companies had a growth rate of 16 per cent; that dropped down to 12 per cent in 2013. The top 10 companies contributed to 41 per cent of total IPM sales, up from 39 per cent in 2010.
The top 100 brands in the IPM cumulatively contributed to approximately 18 percent of the total market value with a growth rate of approximately 11 percent. This value has marginally gone up from 17 percent in 2010. Of the top 100 brands, 44 brands were more than Rs 100 crore in value. Indian companies and the MNCs had an equal share in the top 100 with 50 products each. The number of new products launched has gone down from approximately 1900 in 2010 to approximately 1700 in 2012. Of all the new launches as of April 2013, the maximum were anti-infectives (468), pain- analgesics (435) and gastro (389) therapies. – See more at: http://www.businessworld.in/news/business/pharma/pharma-industry-not-in-pink-of-health/1136565/page-1.html#sthash.chqhLvjL.dpuf
