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The slowdown in Indian economy has its negative impact over growth of Indian pharmaceuticals industry.According to the recent report from CII- PwC, overall pharma has experienced a slowdown with its growth going down to 9.8% from 16.6% in 2012.
The Indian pharmaceutical market (IPM) is currently valued at Rs 72,069 crore as against Rs 65,654 crore in 2012.
This slowdown can be attributed to the new drug pricing policy and the regulatory interventions over the last year, added the CII–PwC report -'India Pharma Inc; Changing Landscape of Indian Pharma Industry’.
Sujay Shetty, leader – pharma and life sciences, PwC India said, “The economic environment in India is tougher now than ever before. While pharma companies focus their attention on measures to combat the growth slowdown, they will need to work with the government and other stakeholders to discuss and resolve regulatory challenges. Resolving the impasse with clinical trials is critical both for patients and India's ambition to innovate.”
The slowdown is also evident from the number of new product launches, which has gone down from approximately 1900 in year 2010 to 1700 in year 2012.
The contribution of chronic therapies to the IPM has gone up from 27 in 2010 to 30% in 2013. Chronic therapies (cardio, gastro, CNS and anti-diabetic) have outperformed the market for the past four years and are growing at a rate of 14%, faster than the acute therapies (anti-infectives, respiratory, pain and gynaec) which grew at 9.6per cent. This essentially translated in an overall slowdown in 2013, highlighted the report.
The industry is witnessing additional challenges like delays in clinical trial approvals, uncertainties over the FDI policy, a uniform code for sales and marketing practices and compulsory licensing. India is perceived as an attractive destination for clinical trials but has been marred with genuine concerns, it said.
