US exports may drive top Indian pharma companies to grow 20% in 2013
Observing that the growth drivers for domestic pharma market would remain intact, India Ratings said the decision of National Pharmaceutical Pricing Policy (NPPP) 2011 to increase the number of drugs under price control will not have any
major impact on the sector's profitability.
The pharma industry has also performed well on exports front, too, with exports having been increased from Rs 386 billion in 2008 to Rs 775 billion in 2012.
A rise in demand for generics in developed markets will be led by patent expiries and an expansion of generics usage due to efforts taken to control healthcare costs by governments, according to the report.
Rising income levels and increasing access to healthcare facilities will continue to drive demand for generics in 'pharmerging' markets like China, Brazil, India, Russia,
Mexico, Turkey, Poland, Venezuela, Argentina, Indonesia, South Africa, Thailand, Romania, Egypt, Ukraine, Pakistan and Vietnam, the report said.
India Ratings believes that earnings for the export- oriented and generic-focused Indian pharma sector will continue to rise with strong growth prospects in global
On the back of increasing demand for generics, exports from India, which contribute 60 per cent of the pharma sector revenue, have grown at a CAGR of 19 per cent over 2008-2012. In January to October 2012, exports were Rs 620 billion,
up about 28 per cent year-on-year. "We expect this trend to continue," India Ratings said.
It believes that the US market will remain the Indian pharma sector's main focus area in the short to medium term.
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