Pharma sector may triple by ’15

Aug. 22: If India’s high economic growth rate holds steady, the pharmaceuticals market will triple to $20 billion by 2015 and become one of the world’s top 10 markets — according to a study by McKinsey and Company, a leading management consulting firm.
At a compounded annual growth rate of 12.3 per cent, the absolute growth of $14 billion will be next to the growth potential of the US and China, and in the same league as the growth in Japan and Canada and the UK, the report states.
"Five factors will drive the growth of the Indian pharmaceuticals market over the next decade: Doubling of disposable incomes and the increase in numbers of middle-class households, significant expansion of medical infrastructure, greater penetration of health insurance, a gradual shift in disease profile and adoption of patented products, and finally population growth," says Mr Palash Mitra, partner, McKinsey and Company and co-leader of the pharmaceuticals and medical products practice.
Patented products are likely to see substantial growth momentum as their share of the pie grows from nominal levels at present, to $2 billion on the back of a supportive regulatory environment, and greater interest by MNCs, predicts the report. "For Indian companies the challenge will be to focus on not just ensuring product access and building robust sales and marketing capabilities, but also creating new markets and crafting differentiated business strategies to service these markets.
On the other hand, multinationals need to raise their game in India and accordingly customise their business models and invest in their India operations," Mr Gautam Kumar, director of McKinsey and Company (India) said.