I am delighted to write to you at the end of what has been a satisfying financial yearfor Alembic Pharmaceuticals Limited. Amid an uncertain global environment and challengingindustry dynamics we have continued to grow.
This encouraging performance has been supported by our commitment to quality adherenceto compliance manufacturing excellence and strong supply chain capabilities.
The global pharmaceutical market is expected to exceed $1.5 trillion by 2023 and thekey growth drivers will continue to be the US and India. India's pharma spends areexpected to increase to $28-32 Billion by 2023. Last year the Government of Indialaunched the National Health Protection Scheme (NHPS) with a vision to provide insurancecover to an estimated 50 Crores individuals from nearly 10 Crores poor and vulnerablefamilies. With the government having spent half a Billion dollar as funding for theprogramme the Finance Minister while presenting the Interim Budget raised the allocationfor Ayushman Bharat scheme to र 6400 Crores for 2019-2020. This will furtherprovide an impetus to the sector and help the patients with better access to medicines.
Currently the domestic pharma industry contributes to over 4% to the gross domesticproduct (GDP) against the global average of 9%. However this is going to improve in thenext five years with the estimated rise in domestic pharma spends. Today close to half aMillion people are directly employed by the sector making India the second highestskilled biotech workforce in the world after China. India is also one of the largestexporters to regulated pharma markets across the globe and Indian pharma firms contributeto over 20% of global generic business.
These positive trends bolster our commitment to ensure that no patient will be deniedaccess to high-quality affordable medicine and medical support.
As an Indian pharma company with over 100 years of expertise we have progressed on thepath to providing high-quality products to patients globally. A strong domestic brandedbusiness and steady progress on building capabilities to provide a diversified offering tostable developed markets remain our competitive advantage. This provides us the window toleverage more growth opportunities.
Like the earlier years we remain committed to strengthening our R&D capabilitiesin FY19 our investment in R&D was around 13% of our total revenue. Our combinedR&D strength today stands at 1100 employees. This talent pool enables us to leverageour huge investments in manufacturing capabilities for general injectables oncologyinjectables oncology solids and ophthalmic.
This year we filed 29 Abbreviated New Drug Applications (ANDAs) in the US which takeour cumulative filings to 161 ANDAs. Our new launches in US during the fiscal were ninereaffirming our promise of consistently offering innovative and differentiated products toour patients.
We are continuously investing in the Company's complex manufacturing capability andfortifying our supply chain management practises to achieve operational excellence.
Our capacity expansion plan is on track. Our Indian formulations business addedsubstantial prescriber base in FY19 reaffirming our brand's position.
Aleor our joint venture for dermatology products filed eight ANDAs in the fiscal andreceived two ANDA approvals. Coupled with a US front-end and a diversified productportfolio with improving market share in the Indian market your Company is on a steadypath of growth and is inching closer to becoming a strong pharma player with a long-termgrowth vision both in the international and domestic market.
As a company with a rich legacy of serving the global pharma market we remain focussedon complete compliance to regulatory norms and have integrated our human resourcesmanagement processes to drive a culture of integrity.
Better access to affordable healthcare remains one of the biggest global challenges andat Alembic we are working towards meeting this global priority.
Our efforts are underpinned by steady production of high-quality products an agilesupply chain and a proactive marketing team that leverages opportunities to reach morepatients across geographies.
On behalf of the Board I would like to express my heart-felt appreciation to ouremployees our business partners and our wide stakeholder community for their guidance andsupport.
I remain confident that we are well positioned to continue in our strategic direction;delivering sustainable value to all our stakeholders.
Chairman and CEO