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Trade generics growth to dent value expansion of domestic drug market

Jan Aushadhi and trade generics together constitute 20-22% of pharma market volumes

The number of Jan Aushadi stores has doubled over the past year and the government is working to improve its stocking and distribution policies

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Jan Aushadhi now has a 4-4.5 percent share of the total volumes in the domestic market, and revenues per store have improved post Covid19 pandemic, suggesting an increasing traction

Sohini Das Mumbai

5 min read Last Updated : Dec 25 2023 | 11:11 PM IST

Rising penetration of trade generic medicines is eating into the value growth of the domestic pharmaceutical market, showed a recent analysis.

According to a Kotak Institutional Equities analysis, 70-110 basis points (bps) annual dent is expected from trade generics and Jan Aushadhi on Indian Pharma Market (IPM) growth at least until FY27-28 (see chart).

Trade generic medicines are those that are not pushed into the market through doctor promotions. Rather, pharma companies supply these medicines directly to the distributors.

Typically, trade generic medicines are available at a 50-60 per cent discount

Topics : generic medicines Drug makers in India Indian pharma Pharma sector Jan Aushadhi stores

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