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

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

Sohini Das 

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



* The growth of the Indian 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 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

* 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+ 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

First Published: Fri, March 22 2019. 11:45 IST
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