(PRWEB) August 29, 2011
Marketsensus new report reveals India's pharmaceutical market beguiles multinational pharmaceutical companies. Sales of medicines are booming and red tape will prevent systematic price cuts, which is a nascent trend in developing countries. A rapidly increasing prevalence of non-communicable diseases, such as hypertension, diabetes and cardiovascular conditions, also appeals to foreign firms and their product portfolios of medicines targeting chronic illnesses. However, India's intellectual property regime fails to acknowledge incremental innovation, discouraging many multinationals from launching products or making fixed capital investments.
Headline Expenditure Projections
Pharmaceuticals: INR862.48bn (US$18.81bn) in 2010 to INR1,008bn (US$21.72bn) in 2011; +16.9% in local currency terms and +15.5% in US dollar terms. Marketsensus forecast has been revised up moderately from Q111 due to analyst intervention.
Healthcare: INR2,699bn (US$58.85bn) in 2010 to INR2,956bn (US$63.70bn) in 2011; +9.5% in local currency terms and +8.2% in US dollar terms. Marketsensus forecast has been revised up moderately from Q111 due to analyst intervention.
Medical devices: INR132.43bn (US$2.89bn) in 2010 to INR152.31bn (US$3.28bn) in 2011; +12.3% in local currency terms and +16.3% in US dollar terms. Marketsensus forecast has been revised down moderately from Q111 due to analyst intervention.
Business Environment Rating: India is under-performing and scores only 56.0 (unchanged from Q111). Despite a rapidly expanding pharmaceutical market, the country remained in ninth position in the 17- country Asia Pacific region. A key drawback is its Country Rewards score, which at 43 is well below the regional average of 55. This category assesses India's pensionable population, rate of urbanisation and population growth.
Key Trends & Developments in India's Pharmaceutical Market GlaxoSmithKline (GSK) hopes to outpace the market in 2011 after underperforming in 2010, according to Mehernosh Kapadia, senior executive director, in February 2011. To achieve this goal, GSK will launch new patented and branded generic drugs and expand its sales and marketing network.
Despite growing domestic resistance to acquisitions of local pharmaceutical companies by foreign firms, UK-based household products giant Reckitt Benckiser said it would acquire India's Paras Pharmaceuticals for INR32.6bn (US$724mn) in December 2010.
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