India’s pharmaceutical market is among the largest industries, globally. Ranking 3rd in terms of volume and 14th in terms of value, the Indian pharmaceutical industry has a great potential for investors that are looking to establish their career in this particular segment.
Also, India is the largest generic drugs’ provider globally, supplying over 50 percent of the global demand for various vaccines. While 25 percent of all medicines in the United Kingdom are provided by India, the United States witnesses 40 percent of generic demands from India.
India: A Major Player in the Global Pharmaceutical Industry
The Indian pharmaceutical industry holds a great position among the different firms available globally. India’s large pool of healthcare doctors, scientists, and engineers carry great potential to grow the industry towards a more lucrative destination. In fact, they already are successful in steering the industry ahead to a much higher level than say a decade ago.
According to IBEF, the country’s pharmaceutical industry is all set to expand at a CAGR of 22.4 percent to reach US$ 55 billion by 2020. India’s pharmaceutical exports stood at US$ 17.27 billion in FY18 and have reached US$ 15.52 billion in FY19 (up to January 2019).
Entering the Chinese Market
Recently, Alembic Pharmaceuticals Limited announced a joint venture (JV) in order to explore the opportunities lying within the Chinese market. The Vadodara based pharmaceutical brand will be targeting the world’s second largest single country drug market after the United States.
Perhaps, this is not the first time when an Indian brand is willing to explore the Chinese market. Players like Dr Reddy’s Laboratories already have their presence in China, whereas firms like Cipla and Sun Pharma are constantly testing the waters.
Utilising the Increasing Demand for Generic Drugs in China
The Chinese market is a massive but tough territory for establishing a business. It accounts a total worth of around $100 billion, which is a huge market to crack, especially if you are expanding internationally.
The Chinese market has shown signs of ease in the recent time, which has therefore opened the gate of opportunities for players catering to the Indian generic drug industry. This changing scenario of the Chinese market is allowing generic drug players to invade the industry in order to expand their businesses within the Chinese region.
Commercialising the Products in China
For taking and promoting their generic drugs, pharmaceutical products, and services to the Chinese market, Alembic Pharmaceuticals has signed a joint venture with China and Adia Pharma Co Ltd, SPH SINE Pharmaceutical Laboratories Co Ltd, and China (Adia).
The company in a filing stated, “The JV will initially launch with a portfolio of oral solids and is expected to widen to other areas like injectable, ophthalmology, dermatology & oncology which are being currently developed and manufactured by Alembic.”
