"Indian pharmaceutical industry stands at the third spot in terms of volume and at the fourteenth in terms of value". Its total turnover stood at US$ 21 billion, growing at a CAGR of 12% in 2009. With No doubts, Indian Pharmaceutical Industry is growing like never before and thus, offers huge investment opportunities for both domestic and foreign Companies.

Major attractions for Foreign Companies

• High Domestic Consumption – With a rise in the population of high-income generating group, India is emerging as a lucrative destination for foreign companies. Domestic Pharmaceutical Consumption estimated to be US $ 7.3 Billion in 2009, growing at 13% year on year.
• Innovative Product Development – Global Players looking at Collaborative Research with India Companies. Indian pharmaceutical R&D expenditure in absolute terms stands at US$ 660 million
• Contract Manufacturing – The demand for contract manufacturing of Formulations, API & Intermediates is estimated to be around US $ 1.1 Billion by 2010
• Clinical Trial Outsourcing –. Clinical trials market currently stands at US$ 275 million, growing at a CAGR of 30% over last few years

Incentive for Foreign Companies

• Strong Domestic Market for Global Players for Introducing their High Quality International Standard Products
• Cost-Efficiency: Pharmaceutical market in India is highly fragmented with over 8,000 manufacturers. Indian Companies can manufacture pharmaceutical for less than half the cost than US.
• Clinical Trial Outsourcing - The variety of Gene Pool, Large number of diseases, English speaking physicians and support staff and therapy naïve patients – make India as an attractive destination for Clinical Trial Outsourcing
• Strong Technical Capability: At present, India boasts of 119 USFDA & 84 UKMHRA approved plants. Above mentioned sites demonstrate the ability if Indian companies to deliver high quality products
• Innovative Product Development – the growing R&D pipeline of Indian Companies presents significant in-licensing opportunities for global companies
• Government Support
  • Indian government is committed to harness India’s innovation capability and is embarking on a multi-billion dollar public-private partnership models
  • 100% Foreign Direct Investment is allowed under automatic route in pharmaceutical sector
• Introduction of product patents has renewed the interest of formerly cautious big pharma in India
• There are 19 dedicated SEZ’s in various stages of development

Investments

The drug and pharmaceutical sector saw a cumulative FDI inflow worth US$ 1.7 billion from the period of April 2000 to January 2010.

How Tecnova Can Help?

At Tecnova, we understand how competitive the market is and thus, believe in providing a complete new source of competitive-edge for our clients. With in-house teams of professional analysts and market experts, we enable our clients make informed decision-making. Tecnova adopts a collaborative approach to every project so as to offer the customized solutions that reflect a deep understanding of your business and let you move forward with ease.

Some of our clients in the pharmaceutical sector include Grünenthal (Switzerland), Bachem (Switzerland), Barr Labs (USA), Conmed (USA), Galderma (France), Solvay (India), Sanofi – Synthelabo (France), Cephlon (USA), Leo Pharmaceutical (Denmark)

Related Links

• Consumer and Retail
• Healthcare
• Pharma
• Infrastructure
• Industrial
• Renewable Energy & Clean Energy
• Telecom & Defence