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September 01, 2019

Sector Report: Pharmaceuticals

This report is available to users in India for ₹40,000 + applicable taxes


Table of Contents


  • Summary
  • Long-term export potential
  • Scenario & medium term outlook
  • Key growth drivers
  • Market Size and Outlook
  • Key growth drivers
  • Scenario and Outlook
  • Profitability




Niche and specialty product pipeline to aid exports growth over next five years


Blockbuster drugs going off-patent and marketing exclusivity aided the growth of Indian exports formulation players from fiscal 2012 to 2016. However, regulatory woes, wholesale consolidation in the US market and rising competition substantially impacted formulation exports players in fiscals 2017 and 2018, leading to flat growth during the fiscals.


In fiscal 2019, formulation exports ncreased as players focused on new launches in conventional segments and increased their focus on niche, specialty and limited competition products. Although pricing pressure exists in the US market, it is likely to have fallen to mid-single digits in fiscal 2019. The price erosion is expected to moderate going ahead. Competitive intensity in the US market peaked in 2017 and the situation is seen to be improving.


Though exports growth is expected to slow, revenue from exports markets for Indian players is expected to grow at a faster rate, as large players look to develop capabilities in the specialty and biosimilar segment through the inorganic route. The exports growth in semi-regulated markets would also improve slightly as players look at new markets with low avenues for growth in regulated markets.