Charticle: How Jan Aushadhi stores are disrupting the Indian pharma market

* The growth of the Indian Pharma market has come down from 13.5 per cent in FY15 to 10 per cent YoY in FY18
 

* Analysts point out that growth from product introductions has nearly halved over the last two years as the drug regulator has been more stringent about new combination drugs
 

* Growing awareness about cheaper alternatives to branded generics and more channels providing access to them has started to impact volume growth for branded generics
 

* The Government's push towards Jan Aushadhi stores has started to impact volumes of branded generics
 

* The Pradhan Mantri Jan Aushadhi scheme aims to provide quality drugs at almost 50-90% discount to their branded counterparts
 

* Jan Aushadhi stores cover a list of 800 plus drugs, both chronic and acute, across therapies like anti-cancer, anti-infective, reproductive and gastro intestinal medicines
 

* There are 5000+ Jan Aushadhi stores now and another 2500 to be opened by 2020
 

* Edelweiss noted revenue of the Jan Aushadhi scheme is expected to double YoY in FY19. Revenue of Rs 300 crore expected in FY19
 

* Can potentially disrupt 1% of IPM
 

# Edelweiss noted that the Rs 120 crore sales of BPPI in FY18 corresponds to Rs 600 crore of branded products

# With each store selling Rs 5 lakh worth medicines, by 2020-21 the scheme topline would Rs 600 crore

# Assuming an average price differential of 5-times, this can potentially disrupt Rs 25,000-30,000 crore worth sales of branded generics

# In short by 2020-21 the Jan Aushadhi scheme has the potential to disrupt 20% of IPM sales