INSUBCONTINENT EXCLUSIVE:
Actually, it has been facing several regulatory challenges in the forms of a recast of foreign direct investment (FDI) policy, pricing
policy in the US generics market, patent protection, regulatory approvals and compulsory licensing.
Also limited new product launches in the
generics space, GST introduction and higher costs associated with regulatory compliance have hurt the sector.
The government has been
engrossed more in policy making and taking resilient decisions for the concerns of the pharma industry
Recently, the government proposed to introduce a new price index for pharmaceutical products, which would serve as a benchmark for
develop a basket of robust products for markets across the world
In international markets, pricing pressure on generics sold in the US has eased and this is likely to support the sector.
Domestic pharma
sales grew to Rs 10,583 crore in May 2018 from Rs 9,549 crore in the same month last year
two-year import ban it had imposed on the company over quality issues
This is likely to increase sales for the company
Moreover, China is emerging as one of the healthiest pharmaceutical markets in the world in terms of growth
Indian pharma companies are drawing up plans to enter strategic alliances and partnerships with local manufacturers and distributors in
China.
This may also help India bridge the widening trade deficit with China, which touched $63.12 billion in 2017-18.
The sector is
definitely getting back on the growth path and India is emerging as a good exporter of generic drugs.
As per a report, if this trend
continues, Indian pharma industry is likely to be one of the top 10 in value terms in global markets by 2020
Certain regulatory changes by leading bodies such as US Food and Drug Administration (USFDA) and the European Medicines Agency (EMA) have
increased the significance of regulatory compliance management for drug manufacturers
Importantly, pharma companies operating in India will need to realign their quality and compliance structures to conform to the constantly
evolving regulatory guidelines
This will put some pressure in the near term.
Going forward socio-economic changes and urbanisation along with sedentary lifestyle, rise in
the prevalence and treatment of chronic diseases, good economic growth leading to higher disposable incomes, launch of patented products,
improvement in healthcare infrastructure and improved healthcare financing will continue to drive growth in the pharma sector.
The sector
will continue to grow both organically and inorganically through alliances and partnerships
Besides, developments in health insurance, medical technology and penetration of mobile health services will provide further impetus to
growth of the pharma industry.
Sensing the growth opportunity in India, foreign pharma companies have tapped the Indian pharma market over
the years through a series of major acquisitions
Sun pharma, Cadila Healthcare, Aurobindo Pharma Dr Lal Path Labs are some of the stocks from the pharma and healthcare space that investors
may look at to invest for the long term.
