Industry Trend Analysis - Local Innovation To Increase In India - JUNE 2017

BMI View: The approval of three innovative drugs from local manufacturers in India highlights the drive for more India-based innovation rather than relying on large, multinational firms. Cancer drug development represents a significant opportunity with an increasing burden of disease; however, this has a downside risk of increasingly stringent price controls.

With multinational drugmakers facing challenging conditions in India such as pricing control and weak intellectual property protection, local manufacturers of innovative drugs are emerging. India is known for its export of generic drugs, but is now becoming a hub for R&D, with some of the largest generic firms establishing proprietary research units. Whilst the sales of generic drugs will remain dominant in India, sales of patented, innovative drugs will grow. In 2015, patented drugs sales were INR100bn (USD1.6bn), and this is expected to reach INR234bn (USD3.3bn) by 2026.

The Drug Controller General of India has called for local companies to delve into innovations, and while this is becoming more apparent with the big Indian firms, small, innovative biotech companies are also starting to appear.

Generics To Remain Dominant
Generic And Patented Drugs Sales In India (INRbn)
f = BMI forecast. Source: AIOCD Pharmasofttech AWACS, Organisation of Pharmaceutical Producers of India (OPPI), BMI

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