#NewDelhi : The Indian pharma sector is likely to grow over three-fold to hit USD 55 billion in the next five years, even as the exports from the sector may slow down to grow at a CAGR of 7.98 per cent owing to stricter regulations in markets such as the US, Russia and Africa, says a report.Consolidation of pharmacy players in North America has resulted in the presence of leading firms that hold better bargaining power, it added.
The study report cited instances like the acquisition of the US distributor Celesio by US pharmacy Mckesson’s in 2014, and formation of a joint venture between the US wholesale distributor Cardinal Health and CVS Caremark in 2013.
“Consolidation of pharmacy players is leading to an increase in pricing pressures for generic companies existing in the US market, which is expected to result in a decline in the year-on-year growth of pharmaceutical exports from India over the next five years,” it added.
“A steep decline in currency in emerging markets such Africa, Russia, Ukraine and Venezuela may add to woes of drug manufacturers that supply pharmaceutical drugs to that region and are unable to generate high revenues on account of selling their drugs at a low priced currency,” the report said.
India is the largest supplier of medicine to the US and pharmaceutical exports from India rose from USD 3.44 billion in 2013 to USD 3.76 billion in 2014.
“Pharmaceutical exports to the US are rising due to the increasing demand for high quality generic drugs in the market. However, the growth rate for exports of pharmaceutical products from India to the US is declining, due to increasing US Food and Drug Administration (FDA) scrutiny on the quality of pharma products coming from drug manufacturing plants located in India. by Agencies
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