Pharma industry poised to beat FY19 exports despite strict US regulations
April-December exports rise 11.5%; estimates peg FY20 numbers at $22 billion
 "Pharma, medicine, Pharmaceuticals")
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Indian pharmaceutical companies are set to beat 2018-19’s (FY19’s) exports this financial year, despite the strict regulatory action by the US Food and Drug Administration (USFDA), its largest market.
The data from the Pharmaceutical Exports Promotion Council (Pharmexcil) shows exports clocked 11.5 per cent growth during the April to December period of 2019-20 (FY20).
The December quarter was particularly good for Indian pharma, clocking 14.6 per cent growth. It was a sharp improvement from the 8.69 per cent growth during the second quarter of the financial year. The March quarter is likely to witness a similar high growth trend, Uday Bhaskar, director general of Pharmexcil, feels.
At this rate, the total exports for the financial year is estimated to touch $22 billion. Bhaskar says for FY20 so far the exports stand at $15.5 billion, growth of 11.5 per cent over last financial year's $13.9 billion for the same period.
He expects that for the full year 2019-20 pharmaceutical exports may touch $22 billion. This would be significantly higher than last fiscal's $19.1 billion.
The top five countries for Indian drug exports are the US, Russia, South Africa, the UK, and Germany for this year so far. According to Bhaskar, the top five export
destinations in FY19 comprised the US, the UK, South Africa, Russia, and Brazil.
In terms of growth, the Netherlands has clocked maximum growth in exports in FY20, at 66.5 per cent, followed by Iran at 45.3 per cent and Tanzania at 44.4 per cent.
Exports account for nearly half of the Indian pharma industry, including the domestic market, the Indian drug industry is estimated to be around $39-40 billion.
While big companies like Sun Pharma are struggling to grow their US sales, some others have managed to register decent growth in the recent quarters. For example, Dr Reddy's Laboratories (DRL) posted an eight per cent year-on-year (YoY) jump in US sales in the third quarter. On the other hand, Sun Pharma saw its US sales fall 3 per cent to $350 million in the December quarter.
Rating agency CRISIL had recently noted that the woes of the Indian generic pharma companies are likely to continue as regulatory action by the USFDA would delay launches in that market.
CRISIL has predicted that 18 per cent of the launches by Indian drug firms would be delayed in the US. In the first 10 months of 2019, the number of warning letters issued by the USFDA to large pharma companies more than doubled, compared to the previous year.
The data from the Pharmaceutical Exports Promotion Council (Pharmexcil) shows exports clocked 11.5 per cent growth during the April to December period of 2019-20 (FY20).
The December quarter was particularly good for Indian pharma, clocking 14.6 per cent growth. It was a sharp improvement from the 8.69 per cent growth during the second quarter of the financial year. The March quarter is likely to witness a similar high growth trend, Uday Bhaskar, director general of Pharmexcil, feels.
At this rate, the total exports for the financial year is estimated to touch $22 billion. Bhaskar says for FY20 so far the exports stand at $15.5 billion, growth of 11.5 per cent over last financial year's $13.9 billion for the same period.
He expects that for the full year 2019-20 pharmaceutical exports may touch $22 billion. This would be significantly higher than last fiscal's $19.1 billion.
The top five countries for Indian drug exports are the US, Russia, South Africa, the UK, and Germany for this year so far. According to Bhaskar, the top five export
destinations in FY19 comprised the US, the UK, South Africa, Russia, and Brazil.
In terms of growth, the Netherlands has clocked maximum growth in exports in FY20, at 66.5 per cent, followed by Iran at 45.3 per cent and Tanzania at 44.4 per cent.
Exports account for nearly half of the Indian pharma industry, including the domestic market, the Indian drug industry is estimated to be around $39-40 billion.
While big companies like Sun Pharma are struggling to grow their US sales, some others have managed to register decent growth in the recent quarters. For example, Dr Reddy's Laboratories (DRL) posted an eight per cent year-on-year (YoY) jump in US sales in the third quarter. On the other hand, Sun Pharma saw its US sales fall 3 per cent to $350 million in the December quarter.
Rating agency CRISIL had recently noted that the woes of the Indian generic pharma companies are likely to continue as regulatory action by the USFDA would delay launches in that market.
CRISIL has predicted that 18 per cent of the launches by Indian drug firms would be delayed in the US. In the first 10 months of 2019, the number of warning letters issued by the USFDA to large pharma companies more than doubled, compared to the previous year.
Topics : Pharma industry Pharma exports USFDA Regulations Crisil